STARWOOD PROPERTY TRUST INC (STWD)
US85571B1052 - REIT
We assign a fundamental rating of 4 out of 10 to STWD. STWD was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of STWD while its profitability can be described as average. 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.
In the past year STWD had a positive cash flow from operations.
In the past 5 years STWD has always 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 (0.66%) which is in line with its industry peers.
STWD's Return On Equity of 6.91% is fine compared to the rest of the industry. STWD outperforms 78.13% of its industry peers.
STWD has a Return On Invested Capital (0.30%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for STWD is in line with the industry average of 1.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 6.91% | ||
| ROIC | 0.3% |
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
The Profit Margin of STWD (18.29%) is better than 81.25% of its industry peers.
In the last couple of years the Profit Margin of STWD has declined.
STWD has a Operating Margin of 10.49%. This is comparable to the rest of the industry: STWD outperforms 56.25% of its industry peers.
STWD's Operating Margin has declined in the last couple of years.
The Gross Margin of STWD (32.30%) 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 | 10.49% | ||
| PM (TTM) | 18.29% | ||
| GM | 32.3% |
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
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.
Compared to 1 year ago, STWD has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.12, we must say that STWD is in the distress zone and has some risk of bankruptcy.
STWD has a Altman-Z score of 0.12. This is in the better half of the industry: STWD outperforms 64.06% of its industry peers.
The Debt to FCF ratio of STWD is 30.23, which is on the high side as it means it would take STWD, 30.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of STWD (30.23) is better than 65.63% of its industry peers.
STWD has a Debt/Equity ratio of 2.95. This is a high value indicating a heavy dependency on external financing.
STWD has a better Debt to Equity ratio (2.95) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.95 | ||
| Debt/FCF | 30.23 | ||
| Altman-Z | 0.12 |
ROIC/WACC0.04
WACC7.03%
2.3 Liquidity
A Current Ratio of 0.54 indicates that STWD may have some problems paying its short term obligations.
With a decent Current ratio value of 0.54, STWD is doing good in the industry, outperforming 68.75% of the companies in the same industry.
STWD has a Quick Ratio of 0.54. 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 of 0.54. This is in the better half of the industry: STWD outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
STWD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.44%.
STWD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.57% yearly.
Looking at the last year, STWD shows a very negative growth in Revenue. The Revenue has decreased by -12.98% in the last year.
The Revenue has been growing by 16.11% on average over the past years. This is quite good.
EPS 1Y (TTM)6.44%
EPS 3Y1.33%
EPS 5Y-1.57%
EPS growth Q2Q18%
Revenue 1Y (TTM)-12.98%
Revenue growth 3Y27.25%
Revenue growth 5Y16.11%
Revenue growth Q2Q5.79%
3.2 Future
The Earnings Per Share is expected to grow by 1.15% on average over the next years.
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-4.44%
EPS Next 2Y0.26%
EPS Next 3Y1.15%
EPS Next 5YN/A
Revenue Next Year3.45%
Revenue Next 2Y-0.44%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.68, which indicates a very decent valuation of STWD.
The rest of the industry has a similar Price/Earnings ratio as STWD.
The average S&P500 Price/Earnings ratio is at 28.91. STWD is valued rather cheaply when compared to this.
STWD is valuated reasonably with a Price/Forward Earnings ratio of 10.06.
STWD's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of STWD to the average of the S&P500 Index (20.51), we can say STWD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STWD is valued a bit cheaper than the industry average as 78.13% 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 | 10.66 | ||
| EV/EBITDA | 80.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.26%
EPS Next 3Y1.15%
5. Dividend
5.1 Amount
STWD has a Yearly Dividend Yield of 9.22%, which is a nice return.
With a Dividend Yield of 9.22, STWD pays less dividend than the industry average, which is at 12.85. 89.06% of the companies listed in the same industry pay a better dividend than STWD!
Compared to an average S&P500 Dividend Yield of 2.34, STWD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.22% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.29%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
139.23% of the earnings are spent on dividend by STWD. This is not a sustainable payout ratio.
The dividend of STWD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP139.23%
EPS Next 2Y0.26%
EPS Next 3Y1.15%
STARWOOD PROPERTY TRUST INC
NYSE:STWD (5/15/2024, 7:10:39 PM)
After market: 20.75 -0.07 (-0.34%)20.82
+0.19 (+0.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.22% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 10.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 6.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.49% | ||
| PM (TTM) | 18.29% | ||
| GM | 32.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.44%
EPS 3Y1.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.98%
Revenue growth 3Y27.25%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y