State Street Corporation (STT)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at State Street as a custodian and administrator with toll-road-like qualities: institutional clients rely on it for custody, accounting, and fund administration. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.0B and net income $1.1B, a 26.78% margin. That compared with revenue of $3.4B and net income of $693.0M in fiscal Q2 2025, the quarter ended 2025-06-30, so recent execution is strong. For the full year, fiscal 2025 revenue was $13.9B, net income $2.9B, and diluted EPS $9.40, up from $13.0B, $2.7B, and $8.21 in fiscal 2024. Even so, the computed Lynch category is SLOW GROWER because profit grew 4.0% and revenue 3.6% a year over five years; I would not confuse one good quarter with a fast compounder. Scale and switching costs support the franchise, but fee pressure and balance-sheet risk remain. FairStock calculations at the 2026-10-26 close of $169.94 show a P/E of 13.88, P/B of 1.88, ROE of 13.08%, FCF yield of 4.3%, and a Graham Number of $168.34, leaving only a 0.30% margin of safety. The Piotroski F-Score of 4/9 and Altman Z-Score of 0.19 are cautions. A PEG of 0.24 looks cheap only if the recent profit spurt proves durable. I see a decent franchise at a fair-to-full price, not a bargain with a wide cushion.

In plain English: State Street provides custody, accounting and fund administration services to institutional investors. The business looks profitable, with strong recent quarterly results, but its long-run growth has been slow and some financial-health scores are only middling. At the 2026-10-26 close of $169.94, the price looks close to fair rather than clearly cheap.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer