st

State Street Corporation

STT
NYSE
$122.11

Does State Street have pricing power in its industry?

The pricing power score of 19/100, which is very low, is a direct consequence of State Street's weak moat and the intense competitive landscape. In the asset management and custody banking industry, services can often be commoditized, leading to significant fee pressure.

Despite generating a healthy TTM Net Margin of 20.4% and TTM Net Income of $6.08B, the company appears to have limited ability to raise prices or resist fee erosion from clients who have increasing access to comparable, lower-cost alternatives.

This suggests that while profitability is achieved through scale and operational efficiency, it is not driven by premium service pricing.

The profoundly negative TTM Free Cash Flow of -$9.81B also raises concerns about the company's ability to extract sufficient value from its services to cover its cash outlays, further highlighting the challenges in commanding higher fees or strong pricing terms.