Stifel Financial is rated a Buy based on its appealing valuation multiple of approximately 13 times forward earnings and a robust capital position with a Tier 1 common equity ratio above 12%. The firm ended 2025 with tangible book value per share of $37.50, up 7% year-over-year, and maintains excess regulatory capital that supports both organic growth and opportunistic deployments. With non-performing assets remaining below 0.15% of total loans and a provision for credit losses that declined sequentially in Q4, the balance sheet is positioned to support an aggressive expansion in client lending and to sustain dividend increases and share repurchases.

In the fourth quarter, net revenues rose 14% to $1.56 billion, driven by record segment contributions. Global Wealth Management posted net revenues of $933.2 million, up 8% year-over-year, with fee-based client assets climbing 16% to $224.5 billion and total client assets reaching $551.9 billion (a 10% increase). Institutional Group net revenues jumped 28% to $609.7 million, propelled by a 46% surge in advisory fees and a 99% increase in equity capital-raising revenues. Non-GAAP diluted EPS of $2.63 outpaced last year’s $2.23 and surpassed consensus estimates by over 6%.

For the full year 2025, Stifel reported record net revenues of $5.53 billion, up 11% from 2024, and non-GAAP net income per diluted share of $6.76. Investment banking revenues climbed 26%, and asset management revenues rose 11%. Return on average tangible common equity was a robust 21.0%. The board approved an 11% increase in the quarterly common stock dividend and declared a three-for-two stock split effective February 26, reflecting management’s commitment to returning excess capital to shareholders.

Management is guiding toward 12% revenue growth in 2026, supported by ongoing recruiting success—181 new advisors added in 2025, including 54 experienced employees—and continued expansion of fee-based assets. The firm plans further balance sheet growth through targeted loan originations and anticipates sustained double-digit growth in advisory and asset management fees. Combined with a disciplined expense structure (non-compensation ratio near 20%) and a pre-tax margin expected to exceed 18%, Stifel is positioned for its next phase of earnings inflection.