STARWOOD PROPERTY TRUST INC (STWD) Stock Fundamental Analysis
NYSE:STWD - New York Stock Exchange, Inc. - US85571B1052 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to STWD. STWD was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. STWD has a bad profitability rating. Also its financial health evaluation is rather negative. 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
In the past year STWD was profitable.
In the past year STWD had a positive cash flow from operations.
In the past 5 years STWD has always been profitable.
Of the past 5 years STWD 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.56%, STWD is in line with its industry, outperforming 50.77% of the companies in the same industry.
The Return On Equity of STWD (5.48%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 0.01%, STWD is doing worse than 64.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STWD is in line with the industry average of 1.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 5.48% | ||
| ROIC | 0.01% |
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 17.74% is fine compared to the rest of the industry. STWD outperforms 75.38% of its industry peers.
STWD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 0.31%, STWD is doing worse than 64.62% of the companies in the same industry.
STWD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 24.87%, STWD is in line with its industry, outperforming 43.08% of the companies in the same industry.
STWD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.31% | ||
| PM (TTM) | 17.74% | ||
| GM | 24.87% |
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.
STWD has more shares outstanding than it did 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
STWD has an Altman-Z score of 0.07. This is a bad value and indicates that STWD is not financially healthy and even has some risk of bankruptcy.
STWD has a Altman-Z score of 0.07. This is in the better half of the industry: STWD outperforms 72.31% of its industry peers.
STWD has a debt to FCF ratio of 26.82. This is a negative value and a sign of low solvency as STWD would need 26.82 years to pay back of all of its debts.
STWD's Debt to FCF ratio of 26.82 is fine compared to the rest of the industry. STWD outperforms 76.92% of its industry peers.
STWD has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 2.69, STWD is doing good in the industry, outperforming 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 26.82 | ||
| Altman-Z | 0.07 |
ROIC/WACC0
WACC6.84%
2.3 Liquidity
STWD has a Current Ratio of 0.22. 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 Current ratio of 0.22. This is comparable to the rest of the industry: STWD outperforms 58.46% of its industry peers.
A Quick Ratio of 0.22 indicates that STWD may have some problems paying its short term obligations.
With a Quick ratio value of 0.22, STWD perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The earnings per share for STWD have decreased by -1.46% in the last year.
Looking at the last year, STWD shows a very negative growth in Revenue. The Revenue has decreased by -15.07% in the last year.
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)-1.46%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-17.24%
Revenue 1Y (TTM)-15.07%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%6.63%
3.2 Future
The Earnings Per Share is expected to grow by 1.07% on average over the next years.
Based on estimates for the next years, STWD will show a small growth in Revenue. The Revenue will grow by 2.99% on average per year.
EPS Next Y-4.34%
EPS Next 2Y0.17%
EPS Next 3Y1.07%
EPS Next 5YN/A
Revenue Next Year-8.42%
Revenue Next 2Y-2.7%
Revenue Next 3Y2.99%
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.
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
Based on the Price/Earnings ratio of 9.50, the valuation of STWD can be described as reasonable.
Based on the Price/Earnings ratio, STWD is valued a bit cheaper than 70.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.18, STWD is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.93, the valuation of STWD can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as STWD.
When comparing the Price/Forward Earnings ratio of STWD to the average of the S&P500 Index (20.81), we can say STWD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
STWD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STWD is cheaper than 73.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STWD is valued a bit cheaper than 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 443.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.17%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
STWD has a Yearly Dividend Yield of 10.04%, which is a nice return.
Compared to an average industry Dividend Yield of 14.03, STWD's dividend is way lower than its industry peers. On top of this 90.77% of the companies listed in the same industry pay a better dividend than STWD!
Compared to an average S&P500 Dividend Yield of 2.45, STWD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.04% |
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
STWD pays out 175.77% of its income as dividend. This is not a sustainable payout ratio.
DP175.77%
EPS Next 2Y0.17%
EPS Next 3Y1.07%
19.29
+0.17 (+0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners51.82%
Inst Owner Change0.25%
Ins Owners5.47%
Ins Owner Change1.61%
Market Cap6.52B
Analysts78.57
Price Target22.44 (16.33%)
Short Float %4.51%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.04% |
Yearly Dividend1.91
Dividend Growth(5Y)-0.25%
DP175.77%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.66%
Min EPS beat(2)0.13%
Max EPS beat(2)1.2%
EPS beat(4)3
Avg EPS beat(4)5.24%
Min EPS beat(4)-3.08%
Max EPS beat(4)22.7%
EPS beat(8)5
Avg EPS beat(8)4.63%
EPS beat(12)6
Avg EPS beat(12)6.21%
EPS beat(16)7
Avg EPS beat(16)10.94%
Revenue beat(2)0
Avg Revenue beat(2)-7.67%
Min Revenue beat(2)-8.53%
Max Revenue beat(2)-6.8%
Revenue beat(4)0
Avg Revenue beat(4)-5.35%
Min Revenue beat(4)-8.53%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-6.78%
Revenue beat(12)4
Avg Revenue beat(12)26.38%
Revenue beat(16)4
Avg Revenue beat(16)18.64%
PT rev (1m)-2.84%
PT rev (3m)-2.84%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-5.61%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-3.85%
Revenue NQ rev (1m)-3.41%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)20.79%
Revenue NY rev (3m)-4.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 9.93 | ||
| P/S | 3.28 | ||
| P/FCF | 10.08 | ||
| P/OCF | 10.08 | ||
| P/B | 1.01 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 443.25 |
EPS(TTM)2.03
EY10.52%
EPS(NY)1.94
Fwd EY10.07%
FCF(TTM)1.91
FCFY9.92%
OCF(TTM)1.91
OCFY9.92%
SpS5.89
BVpS19.06
TBVpS18.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 5.48% | ||
| ROCE | 0.01% | ||
| ROIC | 0.01% | ||
| ROICexc | 0.01% | ||
| ROICexgc | 0.02% | ||
| OM | 0.31% | ||
| PM (TTM) | 17.74% | ||
| GM | 24.87% | ||
| FCFM | 32.52% |
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-Score5
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 26.82 | ||
| Debt/EBITDA | 330.54 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0 | ||
| Cash Conversion | 1232.34% | ||
| Profit Quality | 183.31% | ||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 0.07 |
F-Score5
WACC6.84%
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)-1.46%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-17.24%
EPS Next Y-4.34%
EPS Next 2Y0.17%
EPS Next 3Y1.07%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.07%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%6.63%
Revenue Next Year-8.42%
Revenue Next 2Y-2.7%
Revenue Next 3Y2.99%
Revenue Next 5YN/A
EBIT growth 1Y-97.45%
EBIT growth 3Y-67.95%
EBIT growth 5Y-48.34%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.32%
OCF growth 3YN/A
OCF growth 5YN/A