Stifel Financial Corp. (SF) | Investment Case

1. Company Snapshot

1.a. Company Description

Stifel Financial Corp., a financial services and bank holding company, provides retail and institutional wealth management, and investment banking services to individual investors, corporations, municipalities, and institutions in the United States, the United Kingdom, the rest of Europe, and Canada.It operates in three segments: Global Wealth Management, Institutional Group, and Other.The company provides private client services, including securities transaction and financial planning services; institutional equity and fixed income sales, trading and research, and municipal finance services; investment banking services, such as mergers and acquisitions, public offerings, and private placements; and retail and commercial banking services comprising personal and commercial lending programs, as well as deposit accounts.

It also participates in and manages underwritings for corporate and public finance; and offers financial advisory and securities brokerage services.The company was founded in 1890 and is headquartered in St. Louis, Missouri.

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1.b. Last Insights on SF

Stifel Financial Corp.'s recent performance was negatively impacted by a $134 million ERISA class action case filed against the company, alleging breach of fiduciary duties by retaining underperforming funds for over a decade. Additionally, the company's January 2026 operating data, reported on February 26, 2026, may have raised concerns among investors due to the limited nature of the data. Furthermore, Stifel Financial Corp. faced market jitters in February 2026, which affected the financial services sector. A class action lawsuit and market volatility may weigh on investor sentiment.

1.c. Company Highlights

Last Price	72.31
Change Percentage	-1.01%
Open	73.93
Previous Close	73.05
Market Cap ( Millions)	11193
Volume	985797
Year High	89.83
Year Low	48.85
M A 50	82.22
M A 200	76.8

FCF Yield	8.87%
Dividend Yield	2.17%
ROE	11.96%
Debt / Equity	36.46%
Net Debt / EBIDTA	-10.12%
Price To Book	1.24
Price Earnings Ratio	10.87
Price To FCF	11.27
Price To sales	1.78
EV / EBITDA	10.88

2. Stifel Financial's Strong 2025 Earnings: A Testament to its Durable Business Model

Stifel Financial reported a record revenue of $5.5 billion for 2025, an 11% increase from the previous year, with earnings per share (EPS) of $1.95, beating analyst estimates of $1.85. The firm's global wealth management segment led the charge, delivering another record result, while institutional revenue increased 28% year-over-year. The company's net interest income (NII) and fee-based revenue streams contributed to its robust financial performance. For 2026, the company expects total net revenue to be in the range of $6 billion to $6.35 billion, representing a growth of 9-15%.

Publication Date: Feb -08

                                    📋 Highlights
                                    Record Revenue::
                                                Firm-wide revenue reached $5.5 billion (11% YoY growth), surpassing the $5 billion milestone for the first time in 135 years.
Earnings Resilience::
                                                Achieved $8/share in 2025 despite Q1 headwinds, exceeding the $5.2 billion revenue target and highlighting operating leverage.
Shareholder Performance::
                                                Stifel stock rose 76x since 1997 versus 45x for Microsoft and 9x for the S&P 500, underscoring long-term value creation.
Balance Sheet Growth::
                                                $4 billion in loan growth is projected to drive net interest income of $1.1–$1.2 billion and a 320-basis-point net interest margin in 2026.

                                

Segment Performance

The global wealth management segment continued to be a strong performer, delivering a record result in 2025. The institutional segment also saw significant growth, with revenue increasing 28% year-over-year. The company's ability to drive growth in both segments is a testament to its diversified business model and its ability to capitalize on improving market trends.

Valuation and Growth Expectations

With a Price-to-Tangible Book Value (P/TBV) ratio of 2.33, Stifel Financial's stock is trading at a premium to its book value. However, the company's strong earnings growth and expected revenue growth of 14.4% in 2026 justify this valuation to some extent. The company's Net Interest Margin (NIM) is expected to be around 320 basis points for 2026, which is a key metric for banks. The Dividend Yield of 1.41% provides a relatively stable source of return for investors.

Guidance and Outlook

The company's guidance for 2026 suggests continued growth, with total net revenue expected to be in the range of $6 billion to $6.35 billion. The company is also expected to benefit from its diversified revenue streams, including NII and fee-based revenue. As per the management, "our long-term track record of disciplined execution gives me confidence that we can once again double this business over time."

Key Drivers and Risks

The key drivers of Stifel Financial's performance include its diversified business model, strong wealth management franchise, and improving institutional revenue. However, the company is also exposed to risks such as market volatility, economic downturn, and competition from other financial institutions. The management's focus on recruiting and investing in existing businesses is expected to drive future growth.

3. NewsRoom

Private credit concerns are not overblown, says Verdad's Dan Rasmussen

Feb -27

Source: youtube.com

Stifel Reports January 2026 Operating Data

Feb -26

Source: globenewswire.com

5 Oversold Finance Stocks to Buy on the Rebound

Feb -25

Source: benzinga.com

Sanford Heisler Sharp McKnight Files $134 Million ERISA Class Action Case Against Stifel Financial, Corp. on Behalf of More Than 10,000 Retirement Plan Participants

Feb -20

Source: globenewswire.com

Stifel says Seeing Machines ‘ramp into GSR is real' after KPI update

Feb -12

Source: proactiveinvestors.co.uk

Santhera Appoints Stifel as Corporate Finance Advisor

Feb -10

Source: globenewswire.com

Bitcoin is not digital gold and behaves like a speculative financial instrument: Stifel's Bannister

Feb -09

Source: youtube.com

Stock Splits Matter: What’s Coming Up This Month?

Feb -04

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.77%)

6. Segments

Global Wealth Management

Expected Growth: 7.5%

Stifel Financial Corp.'s Global Wealth Management segment growth of 7.5% is driven by increasing demand for investment management services, expansion of advisory services, and strategic acquisitions. Additionally, the segment benefits from a strong brand reputation, diversified revenue streams, and a growing client base. Furthermore, the company's focus on technology enhancements and digital transformation also contributes to its growth momentum.

Institutional Group

Expected Growth: 8.5%

Stifel Financial Corp.'s Institutional Group growth of 8.5% is driven by increasing institutional client assets, expansion of fixed income and equity trading capabilities, and strategic acquisitions. Additionally, the group's focus on providing comprehensive investment solutions, robust research, and trading execution capabilities has contributed to its growth.

Other

Expected Growth: 7.0%

Stifel Financial Corp.'s 7.0% growth in 'Other' segment is driven by increasing demand for wealth management services, expansion of investment banking operations, and strategic acquisitions. Additionally, the company's focus on technology enhancements and digital transformation initiatives have improved operational efficiency, contributing to the segment's growth.

7. Detailed Products

Wealth Management

Stifel Financial Corp.'s wealth management services provide personalized investment advice, portfolio management, and financial planning to individual investors, families, and institutions.

Institutional Equity

Stifel Financial Corp.'s institutional equity services provide research, trading, and execution services to institutional clients, including hedge funds, mutual funds, and pension funds.

Fixed Income

Stifel Financial Corp.'s fixed income services provide trading, sales, and research services for government and corporate bonds, mortgage-backed securities, and other fixed income products.

Investment Banking

Stifel Financial Corp.'s investment banking services provide advisory services for mergers and acquisitions, equity and debt capital markets, and restructuring and recapitalization.

Brokerage Services

Stifel Financial Corp.'s brokerage services provide online trading platforms, investment products, and research tools for individual investors.

8. Stifel Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Stifel Financial Corp. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified product offerings and strong brand recognition.

Bargaining Power Of Customers

Stifel Financial Corp.'s customers have limited bargaining power due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

Stifel Financial Corp. has a moderate level of dependence on its suppliers, but the company's strong relationships with its suppliers mitigate the bargaining power of suppliers.

Threat Of New Entrants

The financial services industry is highly competitive, and new entrants can easily disrupt the market, posing a significant threat to Stifel Financial Corp.'s market share.

Intensity Of Rivalry

The financial services industry is highly competitive, and Stifel Financial Corp. faces intense rivalry from established players, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	24.29%
Debt Cost	9.65%
Equity Weight	75.71%
Equity Cost	9.65%
WACC	9.65%
Leverage	32.09%

11. Quality Control: Stifel Financial Corp. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stifel Financial

A-Score: 6.1/10

Value: 4.9

Growth: 5.6

Quality: 7.2

Yield: 4.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

PJT Partners

A-Score: 6.0/10

Value: 4.3

Growth: 8.1

Quality: 6.9

Yield: 3.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

Piper Sandler

A-Score: 5.5/10

Value: 4.1

Growth: 5.4

Quality: 6.6

Yield: 5.0

Momentum: 5.5

Volatility: 6.7

1-Year Total Return ->

Evercore

A-Score: 5.3/10

Value: 3.0

Growth: 5.8

Quality: 8.0

Yield: 3.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

Interactive Brokers

A-Score: 5.2/10

Value: 1.4

Growth: 8.7

Quality: 6.2

Yield: 0.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

Jefferies

A-Score: 5.2/10

Value: 6.0

Growth: 5.1

Quality: 6.3

Yield: 6.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.68%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.65%

Stifel Financial Corp. - US8606301021

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SF

1.c. Company Highlights

Stable Momentum

Medium Volatility

Average Quality

Earnings Miss

Revenues Beats

Average Yield

Earnings Beats

Strong Momentum

Average Growth

Fairly Valued

Better Quality

2. Stifel Financial's Strong 2025 Earnings: A Testament to its Durable Business Model

Segment Performance

Valuation and Growth Expectations

Guidance and Outlook

Key Drivers and Risks

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.77%)

6. Segments

Global Wealth Management

Expected Growth: 7.5%

Institutional Group

Expected Growth: 8.5%

Other

Expected Growth: 7.0%

7. Detailed Products

Wealth Management

Institutional Equity

Fixed Income

Investment Banking

Brokerage Services

8. Stifel Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Stifel Financial Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

72.31$

Current Price

72.31$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA