STARWOOD PROPERTY TRUST INC (STWD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STWD - US85571B1052 - REIT
18.55 USD
+0.32 (+1.76%)
18.55 USD
0 (0%)
Taking everything into account, STWD scores 4 out of 10 in our fundamental rating. STWD was compared to 69 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of STWD get a neutral evaluation. Nothing too spectacular is happening here. STWD is valued correctly, 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.
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 0.57%. This is comparable to the rest of the industry: STWD outperforms 59.42% of its industry peers.
STWD has a better Return On Equity (5.21%) than 69.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.09%, STWD is doing worse than 73.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STWD is in line with the industry average of 1.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | 5.21% | ||
| ROIC | 0.09% |
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 has a Profit Margin of 19.32%. This is amongst the best in the industry. STWD outperforms 85.51% of its industry peers.
STWD's Profit Margin has declined in the last couple of years.
STWD has a worse Operating Margin (3.71%) than 71.01% of its industry peers.
STWD's Operating Margin has declined in the last couple of years.
STWD's Gross Margin of 24.47% is on the low side compared to the rest of the industry. STWD is outperformed by 63.77% of its industry peers.
STWD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.71% | ||
| PM (TTM) | 19.32% | ||
| GM | 24.47% |
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.
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.
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 75.36% of its industry peers.
The Debt to FCF ratio of STWD is 27.31, which is on the high side as it means it would take STWD, 27.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 27.31, STWD belongs to the top of the industry, outperforming 84.06% of the companies in the same industry.
A Debt/Equity ratio of 3.12 is on the high side and indicates that STWD has dependencies on debt financing.
With a decent Debt to Equity ratio value of 3.12, STWD is doing good in the industry, outperforming 71.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.12 | ||
| Debt/FCF | 27.31 | ||
| Altman-Z | 0.1 |
ROIC/WACC0.01
WACC6.63%
2.3 Liquidity
A Current Ratio of 0.45 indicates that STWD may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.45, STWD is in the better half of the industry, outperforming 63.77% of the companies in the same industry.
A Quick Ratio of 0.45 indicates that STWD may have some problems paying its short term obligations.
STWD has a Quick ratio of 0.45. This is in the better half of the industry: STWD outperforms 63.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for STWD have decreased strongly by -17.37% in the last year.
STWD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.42%.
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)-17.37%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%1.95%
3.2 Future
Based on estimates for the next years, STWD will show a decrease in Earnings Per Share. The EPS will decrease by -0.34% on average per year.
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y-15.08%
EPS Next 2Y-3.98%
EPS Next 3Y-0.34%
EPS Next 5YN/A
Revenue Next Year-26.92%
Revenue Next 2Y-6.76%
Revenue Next 3Y4.94%
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 decreasing.
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
A Price/Earnings ratio of 10.54 indicates a reasonable valuation of STWD.
Based on the Price/Earnings ratio, STWD is valued a bit cheaper than the industry average as 68.12% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.59, STWD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.91, the valuation of STWD can be described as reasonable.
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 (23.80), we can say STWD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
STWD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STWD is cheaper than 68.12% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STWD indicates a somewhat cheap valuation: STWD is cheaper than 75.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.75 | ||
| EV/EBITDA | 208.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.98%
EPS Next 3Y-0.34%
5. Dividend
5.1 Amount
STWD has a Yearly Dividend Yield of 10.49%, which is a nice return.
Compared to an average industry Dividend Yield of 12.09, STWD is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, STWD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.49% |
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
182.62% of the earnings are spent on dividend by STWD. This is not a sustainable payout ratio.
STWD's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP182.62%
EPS Next 2Y-3.98%
EPS Next 3Y-0.34%
18.55
+0.32 (+1.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners53.67%
Inst Owner Change-13.07%
Ins Owners5.47%
Ins Owner Change0.32%
Market Cap6.87B
Revenue(TTM)1.85B
Net Income(TTM)357.82M
Analysts78.57
Price Target22.1 (19.14%)
Short Float %3.59%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.49% |
Yearly Dividend1.91
Dividend Growth(5Y)-0.25%
DP182.62%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-10.87%
Max EPS beat(2)10.58%
EPS beat(4)2
Avg EPS beat(4)-0.17%
Min EPS beat(4)-10.87%
Max EPS beat(4)10.58%
EPS beat(8)5
Avg EPS beat(8)4.69%
EPS beat(12)6
Avg EPS beat(12)2.69%
EPS beat(16)8
Avg EPS beat(16)11.1%
Revenue beat(2)1
Avg Revenue beat(2)-1.32%
Min Revenue beat(2)-3.97%
Max Revenue beat(2)1.32%
Revenue beat(4)1
Avg Revenue beat(4)-4.74%
Min Revenue beat(4)-9.5%
Max Revenue beat(4)1.32%
Revenue beat(8)1
Avg Revenue beat(8)-6.92%
Revenue beat(12)2
Avg Revenue beat(12)-4%
Revenue beat(16)5
Avg Revenue beat(16)18.21%
PT rev (1m)-1.51%
PT rev (3m)-1.51%
EPS NQ rev (1m)-10.03%
EPS NQ rev (3m)-15.31%
EPS NY rev (1m)-5.65%
EPS NY rev (3m)-6.41%
Revenue NQ rev (1m)2.66%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)-19.69%
Revenue NY rev (3m)-19.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.91 | ||
| P/S | 3.71 | ||
| P/FCF | 8.75 | ||
| P/OCF | 8.75 | ||
| P/B | 1 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 208.01 |
EPS(TTM)1.76
EY9.49%
EPS(NY)1.87
Fwd EY10.09%
FCF(TTM)2.12
FCFY11.42%
OCF(TTM)2.12
OCFY11.42%
SpS5
BVpS18.54
TBVpS16.67
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | 5.21% | ||
| ROCE | 0.11% | ||
| ROIC | 0.09% | ||
| ROICexc | 0.09% | ||
| ROICexgc | 0.21% | ||
| OM | 3.71% | ||
| PM (TTM) | 19.32% | ||
| GM | 24.47% | ||
| FCFM | 42.37% |
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%
ROICexgc growth 3Y-67.71%
ROICexgc 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-Score3
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.12 | ||
| Debt/FCF | 27.31 | ||
| Debt/EBITDA | 161 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.06 | ||
| Cash Conversion | 589.5% | ||
| Profit Quality | 219.3% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 0.1 |
F-Score3
WACC6.63%
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)-17.37%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-16.67%
EPS Next Y-15.08%
EPS Next 2Y-3.98%
EPS Next 3Y-0.34%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%1.95%
Revenue Next Year-26.92%
Revenue Next 2Y-6.76%
Revenue Next 3Y4.94%
Revenue Next 5YN/A
EBIT growth 1Y-11.92%
EBIT growth 3Y-67.95%
EBIT growth 5Y-48.34%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y786.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y786.81%
OCF growth 3YN/A
OCF growth 5YN/A
STARWOOD PROPERTY TRUST INC / STWD FAQ
What is the fundamental rating for STWD stock?
ChartMill assigns a fundamental rating of 4 / 10 to STWD.
Can you provide the valuation status for STARWOOD PROPERTY TRUST INC?
ChartMill assigns a valuation rating of 5 / 10 to STARWOOD PROPERTY TRUST INC (STWD). This can be considered as Fairly Valued.
How profitable is STARWOOD PROPERTY TRUST INC (STWD) stock?
STARWOOD PROPERTY TRUST INC (STWD) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for STWD stock?
The Price/Earnings (PE) ratio for STARWOOD PROPERTY TRUST INC (STWD) is 10.54 and the Price/Book (PB) ratio is 1.
What is the financial health of STARWOOD PROPERTY TRUST INC (STWD) stock?
The financial health rating of STARWOOD PROPERTY TRUST INC (STWD) is 4 / 10.