STARWOOD PROPERTY TRUST INC (STWD) Stock Fundamental Analysis
NYSE:STWD - US85571B1052 - REIT
20.11 USD
-0.02 (-0.1%)
20.13 USD
+0.02 (+0.1%)
Taking everything into account, STWD scores 4 out of 10 in our fundamental rating. STWD was compared to 67 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 is valued correctly, 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.
STWD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
STWD has a Return On Assets of 0.58%. This is in the better half of the industry: STWD outperforms 71.64% of its industry peers.
Looking at the Return On Equity, with a value of 5.64%, STWD belongs to the top of the industry, outperforming 85.07% of the companies in the same industry.
With a Return On Invested Capital value of 0.06%, STWD is not doing good in the industry: 67.16% of the companies in the same industry are doing better.
STWD had an Average Return On Invested Capital over the past 3 years of 0.41%. This is in line with the industry average of 1.32%.
| 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's Profit Margin of 19.67% is amongst the best of the industry. STWD outperforms 86.57% of its industry peers.
In the last couple of years the Profit Margin of STWD has declined.
Looking at the Operating Margin, with a value of 2.43%, STWD is doing worse than 65.67% of the companies in the same industry.
In the last couple of years the Operating Margin of STWD has declined.
With a Gross Margin value of 24.13%, STWD perfoms like the industry average, outperforming 53.73% of the companies in the same industry.
STWD's Gross Margin has declined in the last couple of years.
| 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
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.
STWD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STWD has been reduced compared to a year ago.
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.
With a decent Altman-Z score value of 0.10, STWD is doing good in the industry, outperforming 71.64% of the companies in the same industry.
STWD has a debt to FCF ratio of 28.40. This is a negative value and a sign of low solvency as STWD would need 28.40 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 28.40, STWD belongs to the best of the industry, outperforming 83.58% of the companies in the same industry.
A Debt/Equity ratio of 3.05 is on the high side and indicates that STWD has dependencies on debt financing.
STWD's Debt to Equity ratio of 3.05 is fine compared to the rest of the industry. STWD outperforms 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
WACC6.83%
2.3 Liquidity
A Current Ratio of 0.42 indicates that STWD may have some problems paying its short term obligations.
The Current ratio of STWD (0.42) is better than 62.69% of its industry peers.
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 has a better Quick ratio (0.42) than 62.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for STWD have decreased strongly by -14.02% in the last year.
The Revenue for STWD has decreased by -13.76% in the past year. This is quite bad
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)-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 2.13% 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-9.27%
EPS Next 2Y0.28%
EPS Next 3Y2.13%
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
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 10.93, the valuation of STWD can be described as very reasonable.
STWD's Price/Earnings ratio is a bit cheaper when compared to the industry. STWD is cheaper than 70.15% of the companies in the same industry.
STWD is valuated cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.85, the valuation of STWD can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STWD is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.78, STWD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 9.85 |
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.
STWD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STWD is cheaper than 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.72 | ||
| EV/EBITDA | 282.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.28%
EPS Next 3Y2.13%
5. Dividend
5.1 Amount
STWD has a Yearly Dividend Yield of 9.65%, which is a nice return.
STWD's Dividend Yield is slightly below the industry average, which is at 12.25.
Compared to an average S&P500 Dividend Yield of 2.34, STWD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.65% |
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 177.09% of its income as dividend. This is not a sustainable payout ratio.
DP177.09%
EPS Next 2Y0.28%
EPS Next 3Y2.13%
20.11
-0.02 (-0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners49.43%
Inst Owner Change40.65%
Ins Owners5.5%
Ins Owner Change1.67%
Market Cap7.38B
Analysts78.57
Price Target22.44 (11.59%)
Short Float %4.45%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.65% |
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)0%
EPS NQ rev (1m)-3.28%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)6.74%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)3.97%
Revenue NY rev (3m)39.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 9.85 | ||
| P/S | 4.01 | ||
| P/FCF | 10.72 | ||
| P/OCF | 10.72 | ||
| P/B | 1.15 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 282.67 |
EPS(TTM)1.84
EY9.15%
EPS(NY)2.04
Fwd EY10.15%
FCF(TTM)1.88
FCFY9.33%
OCF(TTM)1.88
OCFY9.33%
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
WACC6.83%
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-9.27%
EPS Next 2Y0.28%
EPS Next 3Y2.13%
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