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 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.
In the past 5 years STWD has always been profitable.
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.
STWD's Return On Equity of 4.85% is fine compared to the rest of the industry. STWD outperforms 76.92% of its industry peers.
STWD's Return On Invested Capital of 0.03% is on the low side compared to the rest of the industry. STWD is outperformed by 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
STWD's Profit Margin of 16.49% is amongst the best of the industry. STWD outperforms 83.08% of its industry peers.
STWD's Profit Margin has declined in the last couple of years.
STWD has a Operating Margin of 1.33%. This is in the lower half of the industry: STWD underperforms 70.77% of its industry peers.
STWD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 24.29%, STWD is in line with its industry, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Gross Margin of STWD has declined.
| 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
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
Compared to 1 year ago, STWD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.09, we must say that STWD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of STWD (0.09) is better than 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.
The Debt to FCF ratio of STWD (22.12) is better than 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's Debt to Equity ratio of 2.86 is fine compared to the rest of the industry. STWD outperforms 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.86 | ||
| Debt/FCF | 22.12 | ||
| Altman-Z | 0.09 |
ROIC/WACC0
WACC6.8%
2.3 Liquidity
A Current Ratio of 0.46 indicates that STWD may have some problems paying 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.
Looking at the Quick 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for STWD have decreased strongly by -12.09% in the last year.
STWD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.73%.
The Revenue has been growing by 10.69% on average over the past years. This is quite good.
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
STWD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.07% yearly.
STWD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y-6.9%
EPS Next 2Y-0.44%
EPS Next 3Y1.07%
EPS Next 5YN/A
Revenue Next Year-34.8%
Revenue Next 2Y-16.19%
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
STWD is valuated reasonably with a Price/Earnings ratio of 10.45.
STWD's Price/Earnings ratio is a bit cheaper when compared to the industry. STWD is cheaper than 67.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, STWD is valued rather cheaply.
STWD is valuated reasonably with a Price/Forward Earnings ratio of 9.81.
The rest of the industry has a similar Price/Forward Earnings ratio as STWD.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, STWD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STWD is valued a bit cheaper than the industry average as 66.15% of the companies are valued more expensively.
STWD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STWD is cheaper than 73.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.08 | ||
| EV/EBITDA | 329.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.44%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
STWD has a Yearly Dividend Yield of 9.66%, which is a nice return.
With a Dividend Yield of 9.66, STWD pays less dividend than the industry average, which is at 14.00. 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 2.38, STWD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.66% |
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 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 202.99% of its income as dividend. This is not a sustainable payout ratio.
DP202.99%
EPS Next 2Y-0.44%
EPS Next 3Y1.07%
19.75
-0.13 (-0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners51.82%
Inst Owner Change3.69%
Ins Owners5.47%
Ins Owner Change1.69%
Market Cap6.70B
Analysts78.57
Price Target22.44 (13.62%)
Short Float %4.33%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.66% |
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)0%
PT rev (3m)-2.84%
EPS NQ rev (1m)-16.31%
EPS NQ rev (3m)-19.73%
EPS NY rev (1m)-2.67%
EPS NY rev (3m)-6.42%
Revenue NQ rev (1m)-6.39%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)-28.81%
Revenue NY rev (3m)-30.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 9.81 | ||
| P/S | 3.56 | ||
| P/FCF | 8.08 | ||
| P/OCF | 8.08 | ||
| P/B | 1.05 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 329.5 |
EPS(TTM)1.89
EY9.57%
EPS(NY)2.01
Fwd EY10.19%
FCF(TTM)2.44
FCFY12.37%
OCF(TTM)2.44
OCFY12.37%
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 | 0.09 |
F-Score4
WACC6.8%
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-6.9%
EPS Next 2Y-0.44%
EPS Next 3Y1.07%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.73%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%-20.06%
Revenue Next Year-34.8%
Revenue Next 2Y-16.19%
Revenue Next 3Y2.99%
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