State Street's the custody bank, they hold and administer assets for other institutions. Not exactly a sexy business which might be why it trades at under 16x trailing earnings while a lot of "boring compounder" financials get a much richer multiple. ROE's a respectable 12.4%, margins are fine for the industry, debt load isn't scary.
I've been tracking a systematic 2-month signal on this one and it's currently positive, though I'll be honest, the risk adjusted number isn't a blowout (Sharpe just under 0.6), all it a real but modest edge, about 76% of similar past setups came in positive. Not the kind of read that makes you back up the truck, more like a mild tailwind on top of a name that already looks reasonably priced.
Not sure custody banks ever re-rate much regardless of how cheap they get. Anyone actually followed STT's multiple over a full cycle? Curious if this is a "always this cheap" situation or an actual opportunity.