STARWOOD PROPERTY TRUST INC (STWD) Stock Fundamental Analysis
NYSE:STWD - New York Stock Exchange, Inc. - US85571B1052 - REIT - Currency: USD
Taking everything into account, STWD scores 3 out of 10 in our fundamental rating. STWD was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of STWD have multiple concerns. STWD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
STWD had positive earnings in the past year.
STWD had a positive operating cash flow in the past year.
STWD had positive earnings in each of the past 5 years.
STWD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.56%, STWD is in line with its industry, outperforming 50.00% of the companies in the same industry.
STWD has a Return On Equity (5.48%) which is in line with its industry peers.
STWD's Return On Invested Capital of 0.01% is on the low side compared to the rest of the industry. STWD is outperformed by 60.94% of its industry peers.
STWD had an Average Return On Invested Capital over the past 3 years of 0.41%. This is in line with the industry average of 1.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 5.48% | ||
| ROIC | 0.01% |
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
Looking at the Profit Margin, with a value of 17.74%, STWD is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of STWD has declined.
With a Operating Margin value of 0.31%, STWD is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of STWD has declined.
STWD's Gross Margin of 24.87% is on the low side compared to the rest of the industry. STWD is outperformed by 60.94% of its industry peers.
In the last couple of years the Gross Margin of STWD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.31% | ||
| PM (TTM) | 17.74% | ||
| GM | 24.87% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STWD is destroying value.
Compared to 1 year ago, STWD has more shares outstanding
The number of shares outstanding for STWD has been increased compared to 5 years ago.
STWD has a better debt/assets ratio than last year.
2.2 Solvency
STWD has an Altman-Z score of 0.07. This is a bad value and indicates that STWD is not financially healthy and even has some risk of bankruptcy.
STWD's Altman-Z score of 0.07 is fine compared to the rest of the industry. STWD outperforms 68.75% of its industry peers.
STWD has a debt to FCF ratio of 26.82. This is a negative value and a sign of low solvency as STWD would need 26.82 years to pay back of all of its debts.
STWD has a Debt to FCF ratio of 26.82. This is in the better half of the industry: STWD outperforms 76.56% of its industry peers.
STWD has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of STWD (2.56) is better than 73.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 26.82 | ||
| Altman-Z | 0.07 |
ROIC/WACC0
WACC6.95%
2.3 Liquidity
STWD has a Current Ratio of 0.22. 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 (0.22) which is in line with its industry peers.
STWD has a Quick Ratio of 0.22. 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 Quick ratio (0.22) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The earnings per share for STWD have decreased by -1.46% in the last year.
Looking at the last year, STWD shows a very negative growth in Revenue. The Revenue has decreased by -15.07% in the last year.
STWD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.69% yearly.
EPS 1Y (TTM)-1.46%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-17.24%
Revenue 1Y (TTM)-15.07%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%6.63%
3.2 Future
STWD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.62% yearly.
STWD is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -34.44% yearly.
EPS Next Y-0.51%
EPS Next 2Y0.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.22%
Revenue Next 2Y-34.44%
Revenue Next 3YN/A
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.93, which indicates a very decent valuation of STWD.
68.75% of the companies in the same industry are more expensive than STWD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of STWD to the average of the S&P500 Index (29.75), we can say STWD is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.98, the valuation of STWD can be described as very reasonable.
STWD's Price/Forward Earnings ratio is in line with the industry average.
STWD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 9.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STWD is valued a bit cheaper than 73.44% of the companies in the same industry.
STWD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STWD is cheaper than 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.51 | ||
| EV/EBITDA | 432.69 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STWD has a Yearly Dividend Yield of 9.53%, which is a nice return.
With a Dividend Yield of 9.53, STWD pays less dividend than the industry average, which is at 12.95. 87.50% of the companies listed in the same industry pay a better dividend than STWD!
Compared to an average S&P500 Dividend Yield of 2.30, STWD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.53% |
5.2 History
The dividend of STWD decreases each year by -0.25%.
STWD has been paying a dividend for at least 10 years, so it has a reliable track record.
STWD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.25%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
175.77% of the earnings are spent on dividend by STWD. This is not a sustainable payout ratio.
DP175.77%
EPS Next 2Y0.62%
EPS Next 3YN/A
20.15
-0.37 (-1.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners51.82%
Inst Owner Change1.34%
Ins Owners5.47%
Ins Owner Change0.29%
Market Cap6.79B
Analysts80
Price Target23.1 (14.64%)
Short Float %4.35%
Short Ratio6.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.53% |
Yearly Dividend1.91
Dividend Growth(5Y)-0.25%
DP175.77%
Div Incr Years0
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.66%
Min EPS beat(2)0.13%
Max EPS beat(2)1.2%
EPS beat(4)3
Avg EPS beat(4)5.24%
Min EPS beat(4)-3.08%
Max EPS beat(4)22.7%
EPS beat(8)5
Avg EPS beat(8)4.63%
EPS beat(12)6
Avg EPS beat(12)6.21%
EPS beat(16)7
Avg EPS beat(16)10.94%
Revenue beat(2)0
Avg Revenue beat(2)-7.67%
Min Revenue beat(2)-8.53%
Max Revenue beat(2)-6.8%
Revenue beat(4)0
Avg Revenue beat(4)-5.35%
Min Revenue beat(4)-8.53%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-6.78%
Revenue beat(12)4
Avg Revenue beat(12)26.38%
Revenue beat(16)4
Avg Revenue beat(16)18.64%
PT rev (1m)0%
PT rev (3m)0.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.24%
Revenue NY rev (1m)-3.08%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 9.98 | ||
| P/S | 3.42 | ||
| P/FCF | 10.51 | ||
| P/OCF | 10.51 | ||
| P/B | 1.06 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 432.69 |
EPS(TTM)2.03
EY10.07%
EPS(NY)2.02
Fwd EY10.02%
FCF(TTM)1.92
FCFY9.52%
OCF(TTM)1.92
OCFY9.52%
SpS5.9
BVpS19.09
TBVpS18.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 5.48% | ||
| ROCE | 0.01% | ||
| ROIC | 0.01% | ||
| ROICexc | 0.01% | ||
| ROICexgc | 0.02% | ||
| OM | 0.31% | ||
| PM (TTM) | 17.74% | ||
| GM | 24.87% | ||
| FCFM | 32.52% |
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-Score5
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 26.82 | ||
| Debt/EBITDA | 314.67 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0 | ||
| Cash Conversion | 1232.34% | ||
| Profit Quality | 183.31% | ||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 0.07 |
F-Score5
WACC6.95%
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)-1.46%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-17.24%
EPS Next Y-0.51%
EPS Next 2Y0.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.07%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%6.63%
Revenue Next Year-6.22%
Revenue Next 2Y-34.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-97.45%
EBIT growth 3Y-67.95%
EBIT growth 5Y-48.34%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.32%
OCF growth 3YN/A
OCF growth 5YN/A