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%)
Overall STAR gets a fundamental rating of 3 out of 10. We evaluated STAR against 124 industry peers in the Diversified REITs industry. STAR scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. STAR has a expensive valuation and it also scores bad on growth.
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
- Looking at the Return On Assets, with a value of 12.23%, STAR belongs to the top of the industry, outperforming 99.26% of the companies in the same industry.
- The Return On Equity of STAR (28.24%) is better 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.
- STAR's Profit Margin has improved in the last couple of years.
- 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.
- STAR has a better debt/assets ratio than last year.
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.
- A Debt/Equity ratio of 1.19 is on the high side and indicates that STAR has dependencies on debt financing.
- The Debt to Equity ratio of STAR (1.19) is comparable to the rest of the 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
- 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.
- STAR's Current ratio of 12.68 is amongst the best of the industry. STAR outperforms 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'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.
- STAR shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -25.29% yearly.
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.
- STAR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.03% yearly.
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
- The Price/Earnings ratio is 1.13, which indicates a rather cheap valuation of STAR.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, STAR is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 35.62, the valuation of STAR can be described as expensive.
- STAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STAR is cheaper than 71.85% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, STAR is valued a bit more expensive.
| 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%. Purely for dividend investing, there may be better candidates out there.
- 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%.