STARWOOD PROPERTY TRUST INC (STWD) Stock Fundamental Analysis
USA - NYSE:STWD - US85571B1052 - REIT
20.23 USD
-0.07 (-0.34%)
20.2038 USD
-0.03 (-0.13%)
STWD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 67 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year STWD was profitable.
STWD had a positive operating cash flow in the past year.
STWD had positive earnings in each of the past 5 years.
Of the past 5 years STWD 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STWD (0.58%) is better than 73.13% of its industry peers.
The Return On Equity of STWD (5.64%) is better than 86.57% of its industry peers.
The Return On Invested Capital of STWD (0.06%) is worse than 67.16% 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 1.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 5.64% | ||
| ROIC | 0.06% |
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 has a Profit Margin of 19.67%. This is amongst the best in the industry. STWD outperforms 88.06% of its industry peers.
STWD's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 2.43%, STWD is not doing good in the industry: 65.67% of the companies in the same industry are doing better.
STWD's Operating Margin has declined in the last couple of years.
STWD has a Gross Margin (24.13%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of STWD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.43% | ||
| PM (TTM) | 19.67% | ||
| GM | 24.13% |
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
STWD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, STWD has more shares outstanding
Compared to 5 years ago, STWD has more shares outstanding
The debt/assets ratio for STWD has been reduced compared to a year ago.
2.2 Solvency
STWD has an Altman-Z score of 0.10. This is a bad value and indicates that STWD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.10, STWD is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
The Debt to FCF ratio of STWD is 28.40, which is on the high side as it means it would take STWD, 28.40 years of fcf income to pay off all of its debts.
STWD has a Debt to FCF ratio of 28.40. This is amongst the best in the industry. STWD outperforms 83.58% of its industry peers.
STWD has a Debt/Equity ratio of 3.05. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of STWD (3.05) is better than 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.05 | ||
| Debt/FCF | 28.4 | ||
| Altman-Z | 0.1 |
ROIC/WACC0.01
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.42 indicates that STWD may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.42, STWD is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
STWD has a Quick Ratio of 0.42. 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's Quick ratio of 0.42 is fine compared to the rest of the industry. STWD outperforms 62.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
STWD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.02%.
The Revenue for STWD has decreased by -13.76% in the past year. This is quite bad
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)-14.02%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-10.42%
Revenue 1Y (TTM)-13.76%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%-15.42%
3.2 Future
STWD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.74% yearly.
STWD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y-8.7%
EPS Next 2Y0.46%
EPS Next 3Y0.74%
EPS Next 5YN/A
Revenue Next Year-9.01%
Revenue Next 2Y-2.78%
Revenue Next 3Y6.08%
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.
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 10.99.
Based on the Price/Earnings ratio, STWD is valued a bit cheaper than 70.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. STWD is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.87, the valuation of STWD can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STWD is on the same level as its industry peers.
STWD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STWD indicates a somewhat cheap valuation: STWD is cheaper than 67.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STWD is valued a bit cheaper than 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.78 | ||
| EV/EBITDA | 283.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.46%
EPS Next 3Y0.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.46%, STWD is a good candidate for dividend investing.
STWD's Dividend Yield is comparable with the industry average which is at 10.79.
Compared to an average S&P500 Dividend Yield of 2.38, STWD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.46% |
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
177.09% of the earnings are spent on dividend by STWD. This is not a sustainable payout ratio.
DP177.09%
EPS Next 2Y0.46%
EPS Next 3Y0.74%
20.23
-0.07 (-0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners49.74%
Inst Owner Change40.71%
Ins Owners5.5%
Ins Owner Change1.28%
Market Cap7.43B
Analysts78.57
Price Target22.44 (10.92%)
Short Float %4.01%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.46% |
Yearly Dividend1.91
Dividend Growth(5Y)-0.25%
DP177.09%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.49%
Min EPS beat(2)-1.6%
Max EPS beat(2)10.58%
EPS beat(4)3
Avg EPS beat(4)2.58%
Min EPS beat(4)-1.6%
Max EPS beat(4)10.58%
EPS beat(8)6
Avg EPS beat(8)6.25%
EPS beat(12)6
Avg EPS beat(12)3.45%
EPS beat(16)8
Avg EPS beat(16)11.72%
Revenue beat(2)0
Avg Revenue beat(2)-6.73%
Min Revenue beat(2)-9.5%
Max Revenue beat(2)-3.97%
Revenue beat(4)0
Avg Revenue beat(4)-7.2%
Min Revenue beat(4)-9.5%
Max Revenue beat(4)-3.97%
Revenue beat(8)0
Avg Revenue beat(8)-7.33%
Revenue beat(12)2
Avg Revenue beat(12)-0.84%
Revenue beat(16)4
Avg Revenue beat(16)18.05%
PT rev (1m)0%
PT rev (3m)1.15%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-3.27%
EPS NY rev (1m)0.63%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 9.87 | ||
| P/S | 4.03 | ||
| P/FCF | 10.78 | ||
| P/OCF | 10.78 | ||
| P/B | 1.16 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 283.06 |
EPS(TTM)1.84
EY9.1%
EPS(NY)2.05
Fwd EY10.13%
FCF(TTM)1.88
FCFY9.28%
OCF(TTM)1.88
OCFY9.28%
SpS5.01
BVpS17.49
TBVpS16.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 5.64% | ||
| ROCE | 0.07% | ||
| ROIC | 0.06% | ||
| ROICexc | 0.06% | ||
| ROICexgc | 0.15% | ||
| OM | 2.43% | ||
| PM (TTM) | 19.67% | ||
| GM | 24.13% | ||
| FCFM | 37.42% |
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 | 3.05 | ||
| Debt/FCF | 28.4 | ||
| Debt/EBITDA | 210.39 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.04 | ||
| Cash Conversion | 740.77% | ||
| Profit Quality | 190.27% | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 0.1 |
F-Score4
WACC6.85%
ROIC/WACC0.01
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)-14.02%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-10.42%
EPS Next Y-8.7%
EPS Next 2Y0.46%
EPS Next 3Y0.74%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.76%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%-15.42%
Revenue Next Year-9.01%
Revenue Next 2Y-2.78%
Revenue Next 3Y6.08%
Revenue Next 5YN/A
EBIT growth 1Y-57.51%
EBIT growth 3Y-67.95%
EBIT growth 5Y-48.34%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y321.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y321.4%
OCF growth 3YN/A
OCF growth 5YN/A