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 3 out of 10 to STWD. STWD was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. STWD has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
Each year in the past 5 years STWD has been profitable.
In multiple years STWD reported negative operating cash flow during the last 5 years.
1.2 Ratios
STWD has a Return On Assets (0.58%) which is in line with its industry peers.
The Return On Equity of STWD (5.69%) is comparable to the rest of the industry.
STWD has a Return On Invested Capital of 0.10%. This is in the lower half of the industry: STWD underperforms 68.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STWD is in line with the industry average of 1.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 5.69% | ||
| ROIC | 0.1% |
ROA(3y)0.7%
ROA(5y)0.63%
ROE(3y)8.6%
ROE(5y)8.77%
ROIC(3y)0.47%
ROIC(5y)0.35%
1.3 Margins
With a decent Profit Margin value of 17.80%, STWD is doing good in the industry, outperforming 70.31% of the companies in the same industry.
STWD's Profit Margin has declined in the last couple of years.
The Operating Margin of STWD (3.73%) is worse than 65.63% of its industry peers.
In the last couple of years the Operating Margin of STWD has declined.
STWD has a Gross Margin of 25.61%. This is in the lower half of the industry: STWD underperforms 60.94% of its industry peers.
In the last couple of years the Gross Margin of STWD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.73% | ||
| PM (TTM) | 17.8% | ||
| GM | 25.61% |
OM growth 3Y-12.29%
OM growth 5Y-3.86%
PM growth 3Y-20.91%
PM growth 5Y-16.23%
GM growth 3Y-14.52%
GM growth 5Y-8.71%
2. Health
2.1 Basic Checks
STWD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
STWD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for STWD has been increased compared to 5 years ago.
The debt/assets ratio for STWD is higher compared to a year ago.
2.2 Solvency
STWD has an Altman-Z score of 0.11. This is a bad value and indicates that STWD is not financially healthy and even has some risk of bankruptcy.
STWD has a better Altman-Z score (0.11) than 70.31% of its industry peers.
STWD has a debt to FCF ratio of 49.37. This is a negative value and a sign of low solvency as STWD would need 49.37 years to pay back of all of its debts.
STWD's Debt to FCF ratio of 49.37 is in line compared to the rest of the industry. STWD outperforms 59.38% of its industry peers.
STWD has a Debt/Equity ratio of 2.72. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.72, STWD is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 49.37 | ||
| Altman-Z | 0.11 |
ROIC/WACC0.02
WACC6.25%
2.3 Liquidity
A Current Ratio of 0.74 indicates that STWD may have some problems paying its short term obligations.
The Current ratio of STWD (0.74) is better than 71.88% of its industry peers.
A Quick Ratio of 0.74 indicates that STWD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, STWD is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
STWD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.58%.
STWD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.57% yearly.
The Revenue for STWD has decreased by -10.39% in the past year. This is quite bad
The Revenue has been growing by 16.11% on average over the past years. This is quite good.
EPS 1Y (TTM)7.58%
EPS 3Y1.33%
EPS 5Y-1.57%
EPS Q2Q%-2.04%
Revenue 1Y (TTM)-10.39%
Revenue growth 3Y27.25%
Revenue growth 5Y16.11%
Sales Q2Q%-8.05%
3.2 Future
Based on estimates for the next years, STWD will show a small growth in Earnings Per Share. The EPS will grow by 0.42% on average per year.
Based on estimates for the next years, STWD will show a very negative growth in Revenue. The Revenue will decrease by -25.71% on average per year.
EPS Next Y-0.48%
EPS Next 2Y-0.99%
EPS Next 3Y0.42%
EPS Next 5YN/A
Revenue Next Year-1.59%
Revenue Next 2Y-4.17%
Revenue Next 3Y-25.71%
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
STWD is valuated reasonably with a Price/Earnings ratio of 8.97.
73.44% 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 (28.28), we can say STWD is valued rather cheaply.
A Price/Forward Earnings ratio of 9.46 indicates a reasonable valuation of STWD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STWD is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 91.29. STWD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STWD is valued a bit cheaper than the industry average as 70.31% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STWD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.75 | ||
| EV/EBITDA | 191.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.99%
EPS Next 3Y0.42%
5. Dividend
5.1 Amount
STWD has a Yearly Dividend Yield of 10.08%, which is a nice return.
Compared to an average industry Dividend Yield of 13.38, STWD's dividend is way lower than its industry peers. On top of this 89.06% of the companies listed in the same industry pay a better dividend than STWD!
STWD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.08% |
5.2 History
The dividend of STWD has a limited annual growth rate of 0.29%.
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)0.29%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
STWD pays out 163.32% of its income as dividend. This is not a sustainable payout ratio.
STWD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP163.32%
EPS Next 2Y-0.99%
EPS Next 3Y0.42%
STARWOOD PROPERTY TRUST INC
NYSE:STWD (1/29/2025, 8:04:01 PM)
After market: 19.29 +0.19 (+0.99%)19.1
-0.21 (-1.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners47.8%
Inst Owner Change-0.08%
Ins Owners5.51%
Ins Owner Change0.32%
Market Cap6.44B
Analysts80
Price Target22.89 (19.84%)
Short Float %3.91%
Short Ratio5.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.08% |
Yearly Dividend1.93
Dividend Growth(5Y)0.29%
DP163.32%
Div Incr Years0
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.48%
Min EPS beat(2)-3.08%
Max EPS beat(2)0.13%
EPS beat(4)3
Avg EPS beat(4)9.55%
Min EPS beat(4)-3.08%
Max EPS beat(4)22.7%
EPS beat(8)4
Avg EPS beat(8)4.12%
EPS beat(12)6
Avg EPS beat(12)14.86%
EPS beat(16)7
Avg EPS beat(16)10.97%
Revenue beat(2)0
Avg Revenue beat(2)-4.69%
Min Revenue beat(2)-8.53%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-9.11%
Min Revenue beat(4)-21.86%
Max Revenue beat(4)-0.84%
Revenue beat(8)1
Avg Revenue beat(8)-3.64%
Revenue beat(12)4
Avg Revenue beat(12)25.86%
Revenue beat(16)5
Avg Revenue beat(16)19.35%
PT rev (1m)0%
PT rev (3m)-1.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 9.46 | ||
| P/S | 3.08 | ||
| P/FCF | 17.75 | ||
| P/OCF | 17.75 | ||
| P/B | 0.98 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 191.75 |
EPS(TTM)2.13
EY11.15%
EPS(NY)2.02
Fwd EY10.57%
FCF(TTM)1.08
FCFY5.63%
OCF(TTM)1.08
OCFY5.63%
SpS6.2
BVpS19.4
TBVpS18.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 5.69% | ||
| ROCE | 0.12% | ||
| ROIC | 0.1% | ||
| ROICexc | 0.1% | ||
| ROICexgc | 0.27% | ||
| OM | 3.73% | ||
| PM (TTM) | 17.8% | ||
| GM | 25.61% | ||
| FCFM | 17.36% |
ROA(3y)0.7%
ROA(5y)0.63%
ROE(3y)8.6%
ROE(5y)8.77%
ROIC(3y)0.47%
ROIC(5y)0.35%
ROICexc(3y)0.47%
ROICexc(5y)0.35%
ROICexgc(3y)1.5%
ROICexgc(5y)1.27%
ROCE(3y)0.61%
ROCE(5y)0.45%
ROICexcg growth 3Y-4.2%
ROICexcg growth 5Y-0.32%
ROICexc growth 3Y17.32%
ROICexc growth 5Y11.24%
OM growth 3Y-12.29%
OM growth 5Y-3.86%
PM growth 3Y-20.91%
PM growth 5Y-16.23%
GM growth 3Y-14.52%
GM growth 5Y-8.71%
F-Score4
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 49.37 | ||
| Debt/EBITDA | 142.39 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.06 | ||
| Cash Conversion | 289.96% | ||
| Profit Quality | 97.49% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.11 |
F-Score4
WACC6.25%
ROIC/WACC0.02
Cap/Depr(3y)11.07%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.8%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.58%
EPS 3Y1.33%
EPS 5Y-1.57%
EPS Q2Q%-2.04%
EPS Next Y-0.48%
EPS Next 2Y-0.99%
EPS Next 3Y0.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.39%
Revenue growth 3Y27.25%
Revenue growth 5Y16.11%
Sales Q2Q%-8.05%
Revenue Next Year-1.59%
Revenue Next 2Y-4.17%
Revenue Next 3Y-25.71%
Revenue Next 5YN/A
EBIT growth 1Y-75.36%
EBIT growth 3Y11.62%
EBIT growth 5Y11.63%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.81%
FCF growth 3Y-20.34%
FCF growth 5Y-2.02%
OCF growth 1Y14.64%
OCF growth 3Y-20.34%
OCF growth 5Y-2.02%