STARWOOD PROPERTY TRUST INC (STWD) Stock Fundamental Analysis
NYSE:STWD - New York Stock Exchange, Inc. - US85571B1052 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to STWD. STWD was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. STWD has an average financial health and profitability rating. STWD has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year STWD was profitable.
In the past year STWD had a positive cash flow from operations.
In the past 5 years STWD has always been profitable.
Of the past 5 years STWD 4 years had a positive operating cash flow.
1.2 Ratios
STWD has a Return On Assets of 0.50%. This is in the better half of the industry: STWD outperforms 63.08% of its industry peers.
STWD has a better Return On Equity (4.85%) than 76.92% of its industry peers.
STWD has a Return On Invested Capital of 0.03%. This is in the lower half of the industry: STWD underperforms 70.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STWD is in line with the industry average of 1.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 4.85% | ||
| ROIC | 0.03% |
ROA(3y)0.71%
ROA(5y)0.61%
ROE(3y)8.01%
ROE(5y)7.71%
ROIC(3y)0.41%
ROIC(5y)0.32%
1.3 Margins
STWD's Profit Margin of 16.49% is amongst the best of the industry. STWD outperforms 83.08% of its industry peers.
In the last couple of years the Profit Margin of STWD has declined.
STWD's Operating Margin of 1.33% is on the low side compared to the rest of the industry. STWD is outperformed by 70.77% of its industry peers.
In the last couple of years the Operating Margin of STWD has declined.
STWD has a Gross Margin of 24.29%. This is comparable to the rest of the industry: STWD outperforms 53.85% of its industry peers.
STWD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.33% | ||
| PM (TTM) | 16.49% | ||
| GM | 24.29% |
OM growth 3Y-73.09%
OM growth 5Y-53.33%
PM growth 3Y-22.07%
PM growth 5Y-15.94%
GM growth 3Y-19.52%
GM growth 5Y-12.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STWD is destroying value.
The number of shares outstanding for STWD has been increased compared to 1 year ago.
Compared to 5 years ago, STWD has more shares outstanding
Compared to 1 year ago, STWD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.10, we must say that STWD is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.10, STWD is doing good in the industry, outperforming 69.23% of the companies in the same industry.
The Debt to FCF ratio of STWD is 22.12, which is on the high side as it means it would take STWD, 22.12 years of fcf income to pay off all of its debts.
STWD has a better Debt to FCF ratio (22.12) than 87.69% of its industry peers.
A Debt/Equity ratio of 2.86 is on the high side and indicates that STWD has dependencies on debt financing.
STWD's Debt to Equity ratio of 2.86 is fine compared to the rest of the industry. STWD outperforms 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.86 | ||
| Debt/FCF | 22.12 | ||
| Altman-Z | 0.1 |
ROIC/WACC0
WACC8.34%
2.3 Liquidity
STWD has a Current Ratio of 0.46. This is a bad value and indicates that STWD is not financially healthy enough and could expect problems in meeting its short term obligations.
STWD has a Current ratio of 0.46. This is in the better half of the industry: STWD outperforms 66.15% of its industry peers.
A Quick Ratio of 0.46 indicates that STWD may have some problems paying its short term obligations.
STWD has a Quick ratio of 0.46. This is in the better half of the industry: STWD outperforms 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for STWD have decreased strongly by -12.09% in the last year.
Looking at the last year, STWD shows a very negative growth in Revenue. The Revenue has decreased by -20.73% in the last year.
Measured over the past years, STWD shows a quite strong growth in Revenue. The Revenue has been growing by 10.69% on average per year.
EPS 1Y (TTM)-12.09%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-23.73%
Revenue 1Y (TTM)-20.73%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%-20.06%
3.2 Future
The Earnings Per Share is expected to grow by 1.16% on average over the next years.
The Revenue is expected to grow by 1.35% on average over the next years.
EPS Next Y-7.76%
EPS Next 2Y0.71%
EPS Next 3Y1.16%
EPS Next 5YN/A
Revenue Next Year-11.75%
Revenue Next 2Y-4.05%
Revenue Next 3Y1.35%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.62, the valuation of STWD can be described as very reasonable.
Based on the Price/Earnings ratio, STWD is valued a bit cheaper than the industry average as 67.69% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of STWD to the average of the S&P500 Index (27.15), we can say STWD is valued rather cheaply.
STWD is valuated reasonably with a Price/Forward Earnings ratio of 9.75.
STWD's Price/Forward Earnings is on the same level as the industry average.
STWD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STWD is valued a bit cheaper than 66.15% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STWD indicates a somewhat cheap valuation: STWD is cheaper than 75.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 332.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.71%
EPS Next 3Y1.16%
5. Dividend
5.1 Amount
STWD has a Yearly Dividend Yield of 9.41%, which is a nice return.
STWD's Dividend Yield is slightly below the industry average, which is at 11.56.
Compared to an average S&P500 Dividend Yield of 2.42, STWD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.41% |
5.2 History
The dividend of STWD decreases each year by -0.25%.
STWD has paid a dividend for at least 10 years, which is a reliable track record.
STWD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.25%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
202.99% of the earnings are spent on dividend by STWD. This is not a sustainable payout ratio.
DP202.99%
EPS Next 2Y0.71%
EPS Next 3Y1.16%
20.07
-0.33 (-1.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners53.15%
Inst Owner Change3.69%
Ins Owners5.95%
Ins Owner Change1.69%
Market Cap6.81B
Analysts78.57
Price Target22.19 (10.56%)
Short Float %4.68%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.41% |
Yearly Dividend1.91
Dividend Growth(5Y)-0.25%
DP202.99%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.2%
Min EPS beat(2)-1.6%
Max EPS beat(2)1.2%
EPS beat(4)2
Avg EPS beat(4)-0.84%
Min EPS beat(4)-3.08%
Max EPS beat(4)1.2%
EPS beat(8)5
Avg EPS beat(8)4.83%
EPS beat(12)5
Avg EPS beat(12)2.44%
EPS beat(16)7
Avg EPS beat(16)10.89%
Revenue beat(2)0
Avg Revenue beat(2)-8.15%
Min Revenue beat(2)-9.5%
Max Revenue beat(2)-6.8%
Revenue beat(4)0
Avg Revenue beat(4)-6.42%
Min Revenue beat(4)-9.5%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-7.05%
Revenue beat(12)3
Avg Revenue beat(12)20.66%
Revenue beat(16)4
Avg Revenue beat(16)18.11%
PT rev (1m)-1.14%
PT rev (3m)-3.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.3%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-7.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.39%
Revenue NY rev (1m)35.36%
Revenue NY rev (3m)15.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.75 | ||
| P/S | 3.62 | ||
| P/FCF | 8.21 | ||
| P/OCF | 8.21 | ||
| P/B | 1.06 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 332.52 |
EPS(TTM)1.89
EY9.42%
EPS(NY)2.06
Fwd EY10.26%
FCF(TTM)2.44
FCFY12.18%
OCF(TTM)2.44
OCFY12.18%
SpS5.54
BVpS18.87
TBVpS17.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 4.85% | ||
| ROCE | 0.04% | ||
| ROIC | 0.03% | ||
| ROICexc | 0.03% | ||
| ROICexgc | 0.09% | ||
| OM | 1.33% | ||
| PM (TTM) | 16.49% | ||
| GM | 24.29% | ||
| FCFM | 44.08% |
ROA(3y)0.71%
ROA(5y)0.61%
ROE(3y)8.01%
ROE(5y)7.71%
ROIC(3y)0.41%
ROIC(5y)0.32%
ROICexc(3y)0.42%
ROICexc(5y)0.32%
ROICexgc(3y)1.27%
ROICexgc(5y)1.09%
ROCE(3y)0.54%
ROCE(5y)0.41%
ROICexcg growth 3Y-67.71%
ROICexcg growth 5Y-52.05%
ROICexc growth 3Y-64.39%
ROICexc growth 5Y-45.8%
OM growth 3Y-73.09%
OM growth 5Y-53.33%
PM growth 3Y-22.07%
PM growth 5Y-15.94%
GM growth 3Y-19.52%
GM growth 5Y-12.09%
F-Score4
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.86 | ||
| Debt/FCF | 22.12 | ||
| Debt/EBITDA | 251.55 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.02 | ||
| Cash Conversion | 1137.05% | ||
| Profit Quality | 267.27% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 0.1 |
F-Score4
WACC8.34%
ROIC/WACC0
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)122.39%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.09%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-23.73%
EPS Next Y-7.76%
EPS Next 2Y0.71%
EPS Next 3Y1.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.73%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%-20.06%
Revenue Next Year-11.75%
Revenue Next 2Y-4.05%
Revenue Next 3Y1.35%
Revenue Next 5YN/A
EBIT growth 1Y-90.11%
EBIT growth 3Y-67.95%
EBIT growth 5Y-48.34%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2592.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2592.4%
OCF growth 3YN/A
OCF growth 5YN/A