STARWOOD PROPERTY TRUST INC (STWD) Stock Fundamental Analysis
NYSE:STWD - New York Stock Exchange, Inc. - US85571B1052 - REIT - Currency: USD
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
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.
STWD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of STWD (0.50%) is better than 61.19% of its industry peers.
With a decent Return On Equity value of 4.85%, STWD is doing good in the industry, outperforming 76.12% of the companies in the same industry.
The Return On Invested Capital of STWD (0.03%) is worse than 71.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STWD is in line with the industry average of 1.41%.
| 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 83.58% of its industry peers.
STWD's Profit Margin has declined in the last couple of years.
STWD's Operating Margin of 1.33% is on the low side compared to the rest of the industry. STWD is outperformed by 71.64% of its industry peers.
In the last couple of years the Operating Margin of STWD has declined.
STWD has a Gross Margin of 24.29%. This is comparable to the rest of the industry: STWD outperforms 53.73% of its industry peers.
STWD's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STWD is destroying value.
STWD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, STWD has more shares outstanding
STWD has a better debt/assets ratio than last year.
2.2 Solvency
STWD has an Altman-Z score of 0.10. This is a bad value and indicates that STWD is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.10, STWD is doing good in the industry, outperforming 70.15% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 22.12, STWD belongs to the best of the industry, outperforming 88.06% of the companies in the same industry.
STWD has a Debt/Equity ratio of 2.86. This is a high value indicating a heavy dependency on external financing.
STWD has a better Debt to Equity ratio (2.86) than 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.86 | ||
| Debt/FCF | 22.12 | ||
| Altman-Z | 0.1 |
ROIC/WACC0
WACC6.85%
2.3 Liquidity
STWD has a Current Ratio of 0.46. This is a bad value and indicates that STWD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of STWD (0.46) is better than 67.16% of its industry peers.
STWD has a Quick Ratio of 0.46. 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 0.46. This is in the better half of the industry: STWD outperforms 67.16% of its industry peers.
| 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.
Looking at the last year, STWD shows a very negative growth in Revenue. The Revenue has decreased by -20.73% in the last year.
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
Based on estimates for the next years, STWD will show a small growth in Earnings Per Share. The EPS will grow by 1.16% on average per year.
Based on estimates for the next years, STWD will show a small growth in Revenue. The Revenue will grow by 1.35% on average per year.
EPS Next Y-9.49%
EPS Next 2Y-0.04%
EPS Next 3Y1.16%
EPS Next 5YN/A
Revenue Next Year-12.48%
Revenue Next 2Y-6.06%
Revenue Next 3Y1.35%
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
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 68.66% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.04. STWD is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.82, the valuation of STWD can be described as reasonable.
STWD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STWD is cheaper than 61.19% of the companies in the same industry.
STWD is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
STWD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STWD is cheaper than 67.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STWD is valued a bit cheaper than 71.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 337.9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.04%
EPS Next 3Y1.16%
5. Dividend
5.1 Amount
STWD has a Yearly Dividend Yield of 9.72%, which is a nice return.
Compared to an average industry Dividend Yield of 11.19, STWD has a dividend in line with its industry peers.
STWD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.72% |
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 202.99% of its income as dividend. This is not a sustainable payout ratio.
DP202.99%
EPS Next 2Y-0.04%
EPS Next 3Y1.16%
19.93
+0.17 (+0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners53.15%
Inst Owner Change21.8%
Ins Owners5.95%
Ins Owner Change1.67%
Market Cap7.32B
Analysts78.57
Price Target22.44 (12.59%)
Short Float %4.55%
Short Ratio6.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.72% |
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)1.15%
PT rev (3m)0%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-17.29%
EPS NY rev (1m)-1.88%
EPS NY rev (3m)-5.38%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-6.86%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-4.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.82 | ||
| P/S | 3.89 | ||
| P/FCF | 8.82 | ||
| P/OCF | 8.82 | ||
| P/B | 1.14 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 337.9 |
EPS(TTM)1.89
EY9.48%
EPS(NY)2.03
Fwd EY10.18%
FCF(TTM)2.26
FCFY11.34%
OCF(TTM)2.26
OCFY11.34%
SpS5.13
BVpS17.45
TBVpS16.58
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 | 0.1 |
F-Score4
WACC6.85%
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-9.49%
EPS Next 2Y-0.04%
EPS Next 3Y1.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.73%
Revenue growth 3Y19.11%
Revenue growth 5Y10.69%
Sales Q2Q%-20.06%
Revenue Next Year-12.48%
Revenue Next 2Y-6.06%
Revenue Next 3Y1.35%
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