Stifel Financial is trading at an estimated 13 times forward earnings, a level that reflects a significant discount to its historical multiple and peer group averages. This valuation, combined with a tangible book value per share that has risen by 7% over the past year, positions the firm for a potential multiple expansion. The firm’s capital ratio remains well above regulatory minima, with a Tier 1 common equity ratio near 10% and tangible common equity representing over 8% of risk-weighted assets, providing ample financial flexibility to support growth initiatives.

In the fourth quarter, wealth management net revenues reached $933.2 million, up 8% year-over-year, driven by a 12% increase in asset management fees and a 3% rise in transactional revenues as client activity improved. Fee-based assets climbed 16% to $224.5 billion, while total client assets rose 10% to $551.9 billion. The institutional group reported net revenues of $609.7 million, a 27% increase, led by a 46% surge in advisory fees and a 99% jump in equity capital-raising revenues. Fixed income capital-raising also grew 23%, reflecting larger deal sizes and improved market conditions.

Management returned capital through an 11% increase in the common stock dividend and approved a three-for-two stock split, expanding the share count to approximately 155 million. Concurrently, the firm expanded its balance sheet, with bank loans rising to $22.4 billion, up 5% from a year ago, and net interest income up 3%. Share repurchases continued in the quarter, reflecting confidence in the franchise and generating accretion for remaining shareholders. The firm’s non-GAAP pre-tax margin of 22.3% in Q4 demonstrates operating leverage, even after elevated provisions for legal matters.

Management has guided to revenue growth of approximately 12% for full-year 2026, supported by continued recruiting of experienced advisors—181 added in 2025—and further expansion in institutional advisory and capital markets activity. The firm expects fee-based assets to grow in the mid-teens percentage range, while net interest income should benefit from ongoing balance sheet growth. Dividend increases and share repurchase authorization remain priorities, with the board signaling a commitment to return at least 50% of net income to shareholders over the next twelve months.