Skip to Content
Morningstar
Get 14 Days Free

State Street Corporation STT

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Low Rate Headwinds Persist, but State Street Benefiting From Market Appreciation

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

Wide-moat State Street reported a solid start to 2021 though interest-rate headwinds continue to weigh on the firm. Revenue for the quarter was $2.95 billion, 2% above the FactSet consensus of $2.88 billion. Adjusted earnings per share of $1.47 also beat the consensus of $1.35. State Street is benefiting from market appreciation and client trading volumes. As we tweak our capital structure and servicing fee estimates, we are increasing our fair value estimate to $76 from $70.

Read Full Analysis

Company Profile

Business Description

State Street is a leading provider of financial services, including investment servicing, investment management, and investment research and trading. With approximately $38.8 trillion in assets under custody and administration and $3.5 trillion assets under management as of Dec. 31, 2020, State Street operates globally in more than 100 geographic markets and employs more than 38,000 worldwide.

Contact
One Lincoln Street
Boston, MA, 02111
T +1 617 786-3000
Sector Financial Services
Industry Asset Management
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 39,318

Related

US Videos
3 Overlooked High-Quality Stocks
Our analysts are excited about these names.
Morningstar
Rekenthaler Report
DFA Is Paying the Price for Its Conviction
However, the company's difficulties will likely be short-lived.
John Rekenthaler
Our Picks
10 High-Quality Stocks on Sale
Here's a peek at the most undervalued constituents of the Morningstar Wide Moat Focus Index--as well as names that have been added and cut.
Susan Dziubinski
Advisor Insights
Investing for Social Justice From the Bottom Up
Advisor Rachel Robasciotti listens to groups on the ground to make an impact.
Morningstar
ETF Specialist
State Street Global Advisors Continues to Make Steady Progress
The firm is executing its new strategy and delivering for investors.
Daniel Sotiroff
Commentary
ESG Proxy Resolutions Find More Support in 2019
But large fund companies often block their path.
Jackie Cook
Investing Specialists
Our Ultimate Stock-Pickers' Top 10 High-Conviction Purchases
Several funds see value in the technology, healthcare, and energy sectors.
Nupur Balain
Stock Strategist Industry Reports
Key Takeaways from Asset Manager Earnings
Nothing in this quarter's results compels us to revise our long-term views, but we did change some fair value estimates.
Greggory Warren
Our Picks
8 Compelling Stocks
These high-quality names were recently added to the Morningstar Wide Moat Focus Index.
Susan Dziubinski
Stock Strategist Industry Reports
4 Traits Asset Managers Need for Success
Here's what we believe is required for these companies to thrive over the next decade.
Greggory Warren
Premium Article
Are These Stocks Going the Way of the Titanic?
The moats of these 14 large-cap companies may be wide, but they’re deteriorating.
Susan Dziubinski
Investing Specialists
Rupal Bhansali: FAANG Stocks Are 'Extremely Risky'
Ariel International's manager discusses why she emphasizes downside protection and what the market is getting wrong about many of the largest companies.
Christine Benz
Fund Spy
A Distinctive Large-Cap Choice
Gold-rated Oakmark Fund stands apart in a Morningstar Category cluttered with bland strategies.
Katie Rushkewicz Reichart
Fund Spy
A Simple Yet Well-Executed Approach to Dividend-Paying Stocks
At Silver-rated T. Rowe Price Equity Income, yield, valuation, quality of management, and company fundamentals all matter.
Katie Rushkewicz Reichart
Fund Spy
This Contrarian Fund Is True to Its Name
Bronze-rated Columbia Contrarian Core buys companies trading with heightened pessimism that have catalysts in place to lift sentiment.
Tom Nations
Our Picks
15 New Stocks in the Wide-Moat Focus Index
We review the adds and drops from the latest reconstitution as well as the index's cheapest names today.
Susan Dziubinski
Our Picks
13 New Stocks in the Wide Moat Focus Index
The Morningstar Wide Moat Focus Index has added several semiconductor stocks and asset managers, among others, to its roster.
Susan Dziubinski
Stock Strategist Industry Reports
How Blockchain Affects Our Coverage
We believe companies with moats from switching costs and intangible assets are less vulnerable.
Jim Sinegal
US Videos
Culture of Conservatism Here to Stay at Northern Trust
We think this trust bank can expand margins over time, but shares look overvalued today.
Eric Compton
Stock Analyst Update
State Street Poised For a Strong 2018
While we expect fee growth to moderate over the longer term, the wide-moat firm should hit a return on equity just over 16% longer term, post tax reform.
Eric Compton