ISTAR INC (STAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STAR - US45031U1016 - REIT
7.63 USD
+0.15 (+2.01%)
8.19 USD
+0.56 (+7.34%)
STAR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year STAR was profitable.
- STAR had a positive operating cash flow in the past year.
1.2 Ratios
- STAR has a better Return On Assets (12.23%) than 99.26% of its industry peers.
- STAR has a Return On Equity of 28.24%. This is amongst the best in the industry. STAR outperforms 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 better Profit Margin (251.69%) than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of STAR has grown nicely.
- STAR's Gross Margin of 27.65% is on the low side compared to the rest of the industry. STAR is outperformed by 91.85% of its industry peers.
- STAR's Gross Margin has declined in the last couple of years.
| 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.
- STAR has more shares outstanding than it did 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.
- With a Altman-Z score value of -0.17, STAR is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
- STAR has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external 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.
- The Current ratio of STAR (12.68) is better than 98.52% of its industry peers.
- A Quick Ratio of 12.64 indicates that STAR has no problem at all paying its short term obligations.
- STAR has a better Quick ratio (12.64) than 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.
- The Earnings Per Share has been growing by 22.38% on average over the past years. This is a very strong growth
- The Revenue for STAR has decreased by -56.33% in the past year. This is quite bad
- The Revenue for STAR have been decreasing by -25.29% on average. This is quite bad
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
- Based on estimates for the next years, STAR will show a very negative growth in Earnings Per Share. The EPS will decrease by -49.62% on average per year.
- Based on estimates for the next years, STAR will show a decrease in Revenue. The Revenue will decrease by -3.03% on average per year.
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
- With a Price/Earnings ratio of 1.13, the valuation of STAR can be described as very cheap.
- 100.00% of the companies in the same industry are more expensive than STAR, based on the Price/Earnings ratio.
- STAR is valuated cheaply when we compare the Price/Earnings ratio to 27.21, 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.
- Based on the Price/Forward Earnings ratio, STAR is valued a bit cheaper than the industry average as 71.85% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of STAR to the average of the S&P500 Index (25.98), we can say STAR is valued slightly more expensively.
| 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
- A cheap valuation may be justified as STAR's earnings are expected to decrease with -49.62% in the coming years.
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!
- Compared to the average S&P500 Dividend Yield of 1.81, STAR is paying slightly less dividend.
| 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%.