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State Street Corp V.STT


Primary Symbol: STT Alternate Symbol(s):  STT.PR.G

State Street Corporation is a financial holding company. The Company, through its subsidiary, State Street Bank and Trust Company (State Street Bank), provides a range of financial products and services to institutional investors. It operates through two lines of business: Investment Servicing and Investment Management. Its Investment Servicing, through State Street Investment Services, State Street Global Markets, State Street Alpha, and State Street Digital, provides investment services for clients, including mutual funds, collective investment funds and other investment pools. Its products include back-office products, such as custody, accounting, investor services and others. Its Investment Management line of business, through State Street Global Advisors, provides a range of investment management strategies and products for its clients. It offers a breadth of services and solutions, including ESG investing, defined contribution products, Global Fiduciary Solutions, and others.


NYSE:STT - Post by User

Post by Smallcapvalueon Apr 03, 2015 2:34pm
140 Views
Post# 23595448

STT, great opportunity at current share price price

STT, great opportunity at current share price priceAt current stock price in low 30's, STT is a good opportunity based on financial results and growth potential. Here are some highlights of my analysis: We already know 2015 will have a strong growth because of the significant backlog as at December 31: 28M$. This backlog represents revenues for 12 months of 2013. In the past years, sales made during a year would equal revenues of the following year. Sales of 2014 were around 37.5M$ so we expect revenues in FY2015 to be around there. This represents a strong growth of about 45% in revenues. Even considering a small reduction of gross margin because of strong competition, we should still see a big impact on bottom line. Last 12 months EBITDA was 2.2M$ or a 6.5 EBITDA/Market Cap valuation. Expected EBITDA for 2015 based on revenues assumptions and lower gross margin to be conservative indicates it should be around 3M$. That would mean a 5X to market cap which is very low and indicates current valuation is too low. Management is competent and now with major investor Genovese backing the company, we should see this company grow even more. STT has also a strong balance sheet and is considering buying opportunities for 2015. It seems to me the current share price does not reflect the potential the company has. Disclosure: LONG STT.V
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