STARWOOD PROPERTY TRUST INC (STWD) Stock Fundamental Analysis
NYSE:STWD - New York Stock Exchange, Inc. - US85571B1052 - REIT - Currency: USD
STWD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. STWD has only an average score on both its financial health and profitability. 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
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 0.50%, STWD is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
With a decent Return On Equity value of 4.85%, STWD is doing good in the industry, outperforming 76.92% of the companies in the same industry.
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
The Profit Margin of STWD (16.49%) is better than 83.08% of its industry peers.
In the last couple of years the Profit Margin of STWD has declined.
With a Operating Margin value of 1.33%, STWD is not doing good in the industry: 70.77% 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 (24.29%) which is comparable to the rest of the industry.
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.
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
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.
STWD has a Altman-Z score of 0.10. This is in the better half of the industry: STWD outperforms 69.23% of its industry peers.
STWD has a debt to FCF ratio of 22.12. This is a negative value and a sign of low solvency as STWD would need 22.12 years to pay back of all of its debts.
STWD's Debt to FCF ratio of 22.12 is amongst the best of the industry. STWD outperforms 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 has a better Debt to Equity ratio (2.86) than 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.
Looking at the Current ratio, with a value of 0.46, STWD is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
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
STWD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.09%.
STWD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.73%.
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)-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
Based on estimates for the next years, STWD will show a small growth in Earnings Per Share. The EPS will grow by 1.16% on average per year.
STWD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.35% yearly.
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
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
With a Price/Earnings ratio of 10.98, 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 66.15% of the companies are valued more expensively.
STWD is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.08, the valuation of STWD can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as STWD.
STWD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
66.15% of the companies in the same industry are more expensive than STWD, based on the Enterprise Value to EBITDA ratio.
73.85% of the companies in the same industry are more expensive than STWD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.49 | ||
| EV/EBITDA | 332.48 |
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.
STWD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.41% |
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
STWD pays out 202.99% of its income as dividend. This is not a sustainable payout ratio.
DP202.99%
EPS Next 2Y0.71%
EPS Next 3Y1.16%
20.75
+0.36 (+1.77%)
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 Cap7.04B
Analysts78.57
Price Target22.19 (6.94%)
Short Float %4.47%
Short Ratio6.3
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 | 10.98 | ||
| Fwd PE | 10.08 | ||
| P/S | 3.74 | ||
| P/FCF | 8.49 | ||
| P/OCF | 8.49 | ||
| P/B | 1.1 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 332.48 |
EPS(TTM)1.89
EY9.11%
EPS(NY)2.06
Fwd EY9.92%
FCF(TTM)2.44
FCFY11.78%
OCF(TTM)2.44
OCFY11.78%
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