S&T Bancorp, Inc. (STBA)
Valuation Overview•Is S&T Bancorp, Inc. Overvalued or Undervalued?
Market price has outpaced base-case intrinsic cash flows, pricing in significant future growth optimism.
Moderate quality score of 62/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Solid fundamental quality, though growth presents a headwind.
Wall Street is cautious, forecasting potential downside with steady expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
STBA demonstrates strong business quality with robust profitability and healthy margins. This is paired with a moderately leveraged but stable balance sheet.
The company maintains stable top-line performance paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 29.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $145.4M | +0.6% | — | — | +8.4% | |
| EBITDA | $42.4M | — | -0.5% | — | — | |
| Net Income | $34.0M | +2.3% | -0.3% | — | +7.2% | |
| EPS (Diluted) | $0.89 | +2.6% | +0.3% | +45.8% | +6.1% | |
| Free Cash Flow | $35.8M | -24.4% | -18.3% | +22.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 69.4% | 70.0% | 78.7% | 77.3% |
| Operating Margin | 29.5% | 30.7% | 34.6% | 31.8% |
| Net Margin | 23.6% | 24.6% | 27.8% | 25.0% |
| FCF Margin | 23.4% | 27.9% | 40.5% | 35.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.87 | $0.94 | +8.4% | ||
| Q2'26 | $0.86 | $0.94 | +8.9% | ||
| Q1'26 | $0.89 | $0.86 | -3.4% | ||
| Q1'26 | $0.89 | $0.89 | +0.0% | ||
| Q4'25 | $0.86 | $0.91 | +6.1% | ||
| Q3'25 | $0.80 | $0.83 | +3.8% | ||
| Q2'25 | $0.74 | $0.87 | +17.6% | ||
| Q1'25 | $0.78 | $0.86 | +10.3% |
Total return is +34.3% (1Y), outperforming the benchmark by +9.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +21.2% | +11.9% | — |
| 1Y | +34.3% | +9.3% | +4.0% |
| 3YCAGR | +21.0% | +1.3% | +14.2% |
| 5YCAGR | +11.6% | -2.1% | +21.1% |
| 10YCAGR | +8.6% | -5.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about S&T Bancorp, Inc. (STBA) valuation, health, and returns.
S&T Bancorp, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. overvalued (implying -16.3% downside from DCF intrinsic value of $39.21)
S&T Bancorp, Inc. has multiple valuation anchors: DCF Intrinsic Value: $39.21 | Peer Relative Fair Value: $48.63 | Wall Street Analyst Target: $37.67 (implying -19.6% upside). A convergence of these signals offers higher conviction.
S&T Bancorp, Inc. displays good financial health with a composite quality score of 62/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 7.4%.
S&T Bancorp, Inc. pays a 2.9% dividend yield, covered by a 39% payout ratio with 13 years of growth, supplemented by a 2.2% buyback yield.
S&T Bancorp, Inc.'s current growth trajectory is Stable. The company achieved +0.6% 1Y revenue growth and +2.6% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 12 analysts, beating EPS expectations in 83% of recent quarters with a 2-quarter streak. The consensus price target represents a -19.6% change from current levels.
Investment risks for S&T Bancorp, Inc. include: -13.4% 1-year max drawdown. Volatility risk is characterized by a beta of 0.67x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.