Custodian bank, asset manager, and asset servicer. $4.7T AUM, $46.6T AUC/A. One of the Big Three index fund providers (SPDR ETFs). | Financial Services — Custody / Asset Management | AGI Score: ?/10 | Analysis date: 2026-03-13
STT-PG is a preferred stock (fixed income-like). The parent trades at 1.4x book, but the PREFERRED trades at 0.45x par value — meaning you can buy $100 of par value for $45. Preferreds are senior to common equity. If STT doesn't go bankrupt, the preferred is money good. The question is: what's the yield-to-par?
Custodian bank, asset manager, and asset servicer. $4.7T AUM, $46.6T AUC/A. One of the Big Three index fund providers (SPDR ETFs).
| Sector | Financial Services |
| Industry | Asset Management |
| Employees | 51,503 |
| ROE | 11.1% |
| ROA | 0.8% |
| Gross Margin | 0.0% |
| Operating Margin | 33.9% |
| Profit Margin | 21.2% |
| 52-Week Range | $72.81 — $137.05 |
| Beta | 1.416 |
| Avg Volume | 2,209,845 |
| Short Ratio | 2.85 |
| EV / EBITDA | — |
| Analyst Target | $144.3 (buy) |
| Float Shares | 263M |
| Payout Ratio | 34.0% |
| Item | Value | % of Assets | Notes |
|---|---|---|---|
| ASSETS ($366.0B) | |||
| PP&E (net) | $3.2B | 0.9% | Physical assets |
| Goodwill | $8.2B | 2.2% | Intangible — scrutinize |
| Other Intangibles | $935M | 0.3% | |
| Other Assets | $353.8B | 96.6% | Receivables, investments, etc. |
| LIABILITIES | |||
| Long-Term Debt | $11.5B | 3.2% | |
| Other Liabilities | $326.7B | 89.2% | |
| EQUITY | |||
| Stockholders' Equity | $27.8B | 7.6% | |
| Tangible Book Value | $18.7B | Equity minus goodwill & intangibles | |
| Tangible Book / Share | $67.26 | vs price $121.34 | |
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Revenue | $11.7B | $12.0B | $12.1B | $11.9B | $13.0B | $13.9B |
| Net Income | $2.3B | $2.6B | $2.7B | $1.8B | $2.5B | $2.7B |
| Total Assets | $314.7B | $314.6B | $301.4B | $297.3B | $353.2B | $366.0B |
| Equity | $26.2B | $27.4B | $25.2B | $23.8B | $25.3B | $27.8B |
| Long-Term Debt | — | — | — | — | — | — |
| Cash | — | — | — | — | — | — |
| OCF | $3.5B | -$6.7B | $12.0B | $690M | -$13.2B | $11.9B |
| PP&E | $2.2B | $2.3B | $2.3B | $2.4B | $2.7B | $3.2B |
| Goodwill | $7.7B | $7.6B | $7.5B | $7.6B | $7.7B | $8.2B |
| Shares (Diluted) | 357M | 358M | 370M | 327M | 302M | 289M |
| Period | Shares (Diluted) | Change |
|---|---|---|
| 2020-12-31 | 357,106,000 | |
| 2021-12-31 | 357,962,000 | +0.2% |
| 2022-12-31 | 370,109,000 | +3.4% |
| 2023-12-31 | 326,568,000 | -11.8% |
| 2024-12-31 | 302,226,000 | -7.5% |
| 2025-12-31 | 289,019,000 | -4.4% |
| Total Change | -19.1% |
Significant buyback activity. Share count declining 19% over the period. This mechanically increases EPS and book value per share even with no underlying growth.
Current EPS: $9.40 | Current Book/Share: $96.33 | Current Price: $121.34
| Scenario | 7yr Future Price | Entry for 10x | vs Current | Assumptions |
|---|---|---|---|---|
| Conservative | $193.34 | $19.33 | +528% below | 8% EPS growth, 12x exit P/E |
| Bull Case | $375.09 | $37.51 | +223% below | 15% EPS growth, 15x exit P/E |
| Buyback Only | $121.97 | $12.20 | +895% | No revenue growth, buybacks continue at current rate, 12x P/E |
| Demand Boost | ?/10 | How much AGI increases demand for this company's products |
| Margin Expansion | ?/10 | How much AGI reduces costs / expands margins |
| Strategic Assets | ?/10 | Unique assets that become more valuable with AGI |
| Disruption Risk | ?/10 | Risk that AGI disrupts the core business model |
| Innovation Risk | ?/10 | Risk of being out-innovated by AGI-native competitors |
| Overall AGI Score | ?/10 | Category: unknown |
Reasoning: No detailed reasoning available.
STT (State Street (Preferred G)) trades at 1.39x book value (1.80x tangible book) with $2.7B net income on a $33.9B market cap (8.0% earnings yield). ROE of 11.1%. Shares have declined 19% over the measurement period through buybacks.
Verdict: NEEDS DEEPER ANALYSIS — Preferred Stock Mechanics. STT-PG is fundamentally different from the other companies here — it's a fixed-income instrument, not an equity play. Trading at $45 vs $100 par (55% discount) sounds incredible, but the discount likely reflects: (1) low coupon rate vs current market rates, (2) perpetual nature (no maturity date), (3) callable at par. Need to find the coupon rate and calculate yield-to-worst. If the current yield is competitive with market rates AND there's par upside, this could be compelling. If the coupon is 4-5%, the discount is rational.
Data sources: SEC EDGAR XBRL (CIK 93751), yfinance, 10-K filing, AGI scoring framework. Analysis date: 2026-03-13.