NYSE:SF
STIFEL FINANCIAL CORP
A mid-sized U.S. financial services firm offering brokerage, banking, and advisory solutions with strong capital generation capabilities.
Key Metrics
Investment Thesis
Bull Case
Stifel offers compelling value for growth-oriented investors seeking exposure to the specialized industrial brokerage niche with a proven track record of revenue expansion over the last three years. The company's aggressive capital return program, evidenced by significant share repurchases and manageable preferred equity costs, supports earnings per share growth potential even as net income stabilizes.
Bear Case
Analysts may view the recent dip in net income alongside substantial interest expenses as signs of margin pressure that could persist if funding costs do not normalize. The company's significant goodwill of $1.46B and non-cash adjustments exceeding $1.3 billion require ongoing monitoring for potential impairment charges or accounting volatility.
About STIFEL FINANCIAL CORP
Stifel Financial Corp provides comprehensive financial services including securities brokerage, investment banking, and wealth management solutions to retail and institutional clients across the United States. The company operates primarily through its Stifel Wealth Management, Stifel Securities, and Stifel Capital Markets segments, leveraging a proprietary technology platform to serve diverse market needs.
Analysis
Management Discussion
Despite a slight year-over-year decline in net profit from $731.4M in 2024 to $683.8M in 2025, revenue grew robustly by 6.7% to reach $6.35B, demonstrating effective cross-selling and market share gains. The company generated strong operating cash flow of $1.12B, which funded $245.0M in share repurchases while maintaining a healthy ending cash balance of $2.28B against total assets of $41.27B.
Industry Overview
The U.S. financial services industry is characterized by consolidation, intense competition among broker-dealers, and increasing regulatory scrutiny on capital adequacy and consumer protection. Firms like Stifel must continuously innovate their technology stacks and niche research capabilities to differentiate themselves in a market dominated by large bulge-bracket banks and digital-first platforms.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.59B | $5.16B | $5.95B | $6.35B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $4.59B | $5.16B | $5.95B | $6.35B |
| Operating Expenses | $3.71B | $4.45B | $5.02B | $5.48B |
| Operating Income | $885.1M | $706.7M | $928.4M | $871.1M |
| Stock-Based Comp | $135.5M | $140.3M | $153.8M | $164.0M |
| Amortization | $19.6M | $20.9M | $23.6M | $34.1M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $201.4M | $810.3M | $981.4M | $817.8M |
| Pre-Tax Income | $885.1M | $706.7M | $928.4M | $871.1M |
| Income Tax | $223.0M | $184.2M | $197.1M | $187.4M |
| Continuing Ops | $662.2M | $522.5M | $731.4M | $683.8M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $662.2M | $522.5M | $731.4M | $683.8M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $662.2M | $522.5M | $731.4M | $683.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $2.20B | $3.36B | $2.65B | $2.25B |
| PP&E (Net) | $200.0M | $191.5M | $193.2M | $197.1M |
| Intangibles | $130.6M | $133.3M | $113.6M | $108.0M |
| Goodwill | $1.33B | $1.39B | $1.40B | $1.46B |
| Operating Leases | $775.9M | $778.2M | $809.2M | $788.5M |
| Total Assets | $37.20B | $37.73B | $39.90B | $41.27B |
| Total Liabilities | $31.87B | $32.43B | $34.21B | $35.29B |
| Shareholders' Equity | $5.33B | $5.29B | $5.69B | $5.98B |
| Paid-In Capital | $1.93B | $1.91B | $1.90B | $1.92B |
| AOCI | $-118.0M | $-74.3M | $-75.6M | $-17.8M |
| Treasury Stock | $352.5M | $636.7M | $629.5M | $786.3M |
| Total L&E | $37.20B | $37.73B | $39.90B | $41.27B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $662.2M | $522.5M | $731.4M | $683.8M |
| Non-Cash Adjustments | $-1.89B | $-647.1M | $-2.61B | $-1.36B |
| Working Capital Changes | $2.38B | $623.8M | $2.37B | $1.79B |
| Cash from Operations | $1.16B | $499.3M | $490.4M | $1.12B |
| Cash from Investing | $-4.32B | $1.04B | $-2.31B | $-1.61B |
| Share Buybacks | $105.8M | $443.9M | $144.1M | $245.0M |
| Cash from Financing | $3.19B | $-254.6M | $980.1M | $91.2M |
| FX Effect | $55.1M | $5.5M | $-6.0M | $10.3M |
| Net Change in Cash | $79.3M | $1.29B | $-845.6M | $-395.4M |
| Beginning Cash | $2.15B | $2.23B | $3.52B | $2.68B |
| Ending Cash | $2.23B | $3.52B | $2.68B | $2.28B |
Frequently Asked Questions
How does STIFEL FINANCIAL CORP make money?
The company derives revenue from three primary streams: Wealth Management serving individual clients with investment advisory and planning services; Securities providing equity and fixed-income trading, research, and distribution to institutional investors; and Capital Markets delivering investment banking advisory, M&A, and financing solutions to corporate clients.
What are the main risks for SF?
Elevated interest expense of $817.8M exposes the company to margin compression if rates remain high or fluctuate unexpectedly; heavy reliance on marketable securities and trading revenue creates sensitivity to market volatility and liquidity conditions; regulatory changes in the financial services sector could increase compliance costs or restrict business lines; concentration in specific industrial sectors may lead to cyclical downturns affecting fee-based income.
What is SF's competitive advantage?
Stifel maintains a distinct competitive edge through its specialized focus on niche sectors such as industrials and industrials-focused brokerage, a highly trained analyst team providing high-quality research coverage, and a resilient capital structure that supports consistent share buybacks in periods of strong cash flow.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.