ISTAR INC (STAR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:STAR • US45031U1016
7.63 USD
+0.15 (+2.01%)
At close: Mar 30, 2023
8.19 USD
+0.56 (+7.34%)
After Hours: 3/30/2023, 8:18:09 PM
We assign a fundamental rating of 3 out of 10 to STAR. STAR was compared to 124 industry peers in the Diversified REITs industry. While STAR seems to be doing ok healthwise, there are quite some concerns on its profitability. STAR is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- STAR had positive earnings in the past year.
- In the past year STAR had a positive cash flow from operations.
1.2 Ratios
- STAR has a Return On Assets of 12.23%. This is amongst the best in the industry. STAR outperforms 99.26% of its industry peers.
- STAR has a better Return On Equity (28.24%) than 95.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 28.24% | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- STAR has a Profit Margin of 251.69%. This is amongst the best in the industry. STAR outperforms 100.00% of its industry peers.
- STAR's Profit Margin has improved in the last couple of years.
- STAR has a worse Gross Margin (27.65%) than 91.85% of its industry peers.
- In the last couple of years the Gross Margin of STAR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 251.69% | ||
| GM | 27.65% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y60.57%
PM growth 5Y72.82%
GM growth 3Y-22.13%
GM growth 5Y-11.74%
2. Health
2.1 Basic Checks
- STAR does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for STAR has been increased compared to 1 year ago.
- Compared to 1 year ago, STAR has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -0.17, we must say that STAR is in the distress zone and has some risk of bankruptcy.
- STAR has a Altman-Z score of -0.17. This is amonst the worse of the industry: STAR underperforms 85.19% of its industry peers.
- A Debt/Equity ratio of 1.19 is on the high side and indicates that STAR has dependencies on debt financing.
- STAR's Debt to Equity ratio of 1.19 is in line compared to the rest of the industry. STAR outperforms 43.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.17 |
ROIC/WACCN/A
WACC6.45%
2.3 Liquidity
- STAR has a Current Ratio of 12.68. This indicates that STAR is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 12.68, STAR belongs to the top of the industry, outperforming 98.52% of the companies in the same industry.
- STAR has a Quick Ratio of 12.64. This indicates that STAR is financially healthy and has no problem in meeting its short term obligations.
- STAR's Quick ratio of 12.64 is amongst the best of the industry. STAR outperforms 98.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 12.68 | ||
| Quick Ratio | 12.64 |
3. Growth
3.1 Past
- STAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 92.07%, which is quite impressive.
- STAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.38% yearly.
- The Revenue for STAR has decreased by -56.33% in the past year. This is quite bad
- STAR shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -25.29% yearly.
EPS 1Y (TTM)92.07%
EPS 3Y23.49%
EPS 5Y22.38%
EPS Q2Q%-169.7%
Revenue 1Y (TTM)-56.33%
Revenue growth 3Y-30.92%
Revenue growth 5Y-25.29%
Sales Q2Q%-40.35%
3.2 Future
- STAR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -49.62% yearly.
- STAR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.03% yearly.
EPS Next Y-96.84%
EPS Next 2Y-65.31%
EPS Next 3Y-49.62%
EPS Next 5YN/A
Revenue Next Year-42.62%
Revenue Next 2Y-5.74%
Revenue Next 3Y-3.03%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- STAR is valuated cheaply with a Price/Earnings ratio of 1.13.
- Compared to the rest of the industry, the Price/Earnings ratio of STAR indicates a rather cheap valuation: STAR is cheaper than 100.00% of the companies listed in the same industry.
- STAR is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 35.62 indicates a quite expensive valuation of STAR.
- STAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STAR is cheaper than 71.85% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, STAR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.13 | ||
| Fwd PE | 35.62 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- STAR's earnings are expected to decrease with -49.62% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-65.31%
EPS Next 3Y-49.62%
5. Dividend
5.1 Amount
- STAR has a Yearly Dividend Yield of 1.26%.
- With a Dividend Yield of 1.26, STAR pays less dividend than the industry average, which is at 6.82. 80.00% of the companies listed in the same industry pay a better dividend than STAR!
- STAR's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
- STAR has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 13.50% of the earnings are spent on dividend by STAR. This is a low number and sustainable payout ratio.
DP13.5%
EPS Next 2Y-65.31%
EPS Next 3Y-49.62%
ISTAR INC / STAR FAQ
Can you provide the ChartMill fundamental rating for ISTAR INC?
ChartMill assigns a fundamental rating of 6 / 10 to STAR.
Can you provide the valuation status for ISTAR INC?
ChartMill assigns a valuation rating of 9 / 10 to ISTAR INC (STAR). This can be considered as Undervalued.
How profitable is ISTAR INC (STAR) stock?
ISTAR INC (STAR) has a profitability rating of 8 / 10.
What is the financial health of ISTAR INC (STAR) stock?
The financial health rating of ISTAR INC (STAR) is 5 / 10.
Is the dividend of ISTAR INC sustainable?
The dividend rating of ISTAR INC (STAR) is 7 / 10 and the dividend payout ratio is 13.5%.