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%)
Taking everything into account, STAR scores 3 out of 10 in our fundamental rating. 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
- In the past year STAR was profitable.
- STAR had a positive operating cash flow in the past year.
1.2 Ratios
- STAR's Return On Assets of 12.23% is amongst the best of 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
- The Profit Margin of STAR (251.69%) is better than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of STAR has grown nicely.
- STAR has a worse Gross Margin (27.65%) than 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.
- The debt/assets ratio for STAR has been reduced compared to a year ago.
2.2 Solvency
- STAR has an Altman-Z score of -0.17. This is a bad value and indicates that STAR is not financially healthy and even 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.
- With a Debt to Equity ratio value of 1.19, STAR perfoms like the industry average, outperforming 43.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.17 |
ROIC/WACCN/A
WACC6.45%
2.3 Liquidity
- A Current Ratio of 12.68 indicates that STAR has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 12.68, STAR belongs to the best 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.
- The Earnings Per Share has been growing by 22.38% on average over the past years. This is a very strong growth
- Looking at the last year, STAR shows a very negative growth in Revenue. The Revenue has decreased by -56.33% in the last year.
- 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
- 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.
- The Revenue is expected to decrease by -3.03% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 1.13, the valuation of STAR can be described as very cheap.
- 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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 35.62, which means the current valuation is very expensive for STAR.
- Based on the Price/Forward Earnings ratio, STAR is valued a bit cheaper than 71.85% of the companies in the same industry.
- STAR's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.98.
| 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
- With a Yearly Dividend Yield of 1.26%, STAR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 6.82, STAR's dividend is way lower than its industry peers. On top of this 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 1.81.
| 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%.