STARWOOD PROPERTY TRUST INC (STWD) Stock Fundamental Analysis
NYSE:STWD - New York Stock Exchange, Inc. - US85571B1052 - REIT - Currency: USD
Overall STWD gets a fundamental rating of 3 out of 10. We evaluated STWD against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. STWD may be in some trouble as it scores bad on both profitability and health. 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.
STWD had a positive operating cash flow in the past year.
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
The Return On Assets of STWD (0.56%) is comparable to the rest of the industry.
With a Return On Equity value of 5.48%, STWD perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
STWD has a worse Return On Invested Capital (0.01%) than 64.62% 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 1.68%.
| 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
With a decent Profit Margin value of 17.74%, STWD is doing good in the industry, outperforming 75.38% of the companies in the same industry.
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.
STWD has a Gross Margin (24.87%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of STWD has declined.
| 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
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 0.07, we must say that STWD is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.07, STWD is doing good in the industry, outperforming 72.31% of the companies in the same industry.
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 78.46% of its industry peers.
A Debt/Equity ratio of 2.69 is on the high side and indicates that STWD has dependencies on debt financing.
STWD has a better Debt to Equity ratio (2.69) than 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 26.82 | ||
| Altman-Z | 0.07 |
ROIC/WACC0
WACC6.85%
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.
The Quick ratio of STWD (0.22) is comparable to the rest of the 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 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 -15.07%.
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)-12.09%
EPS 3Y-8.27%
EPS 5Y0%
EPS Q2Q%-23.73%
Revenue 1Y (TTM)-15.07%
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.
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 10.43 indicates a reasonable valuation of STWD.
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.
STWD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
A Price/Forward Earnings ratio of 9.79 indicates a reasonable valuation of STWD.
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 (22.20), we can say STWD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 9.79 |
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 the industry average as 67.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.35 | ||
| EV/EBITDA | 445.43 |
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 9.95%, which is a nice return.
Compared to an average industry Dividend Yield of 14.38, 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 2.40, STWD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.95% |
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 175.77% of its income as dividend. This is not a sustainable payout ratio.
DP175.77%
EPS Next 2Y-0.44%
EPS Next 3Y1.07%
19.71
+0.18 (+0.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners51.82%
Inst Owner Change3.64%
Ins Owners5.47%
Ins Owner Change1.69%
Market Cap6.69B
Analysts78.57
Price Target22.44 (13.85%)
Short Float %4.33%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.95% |
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)-2.67%
EPS NY rev (3m)-6.42%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)-28.81%
Revenue NY rev (3m)-30.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 9.79 | ||
| P/S | 3.36 | ||
| P/FCF | 10.35 | ||
| P/OCF | 10.35 | ||
| P/B | 1.04 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 445.43 |
EPS(TTM)1.89
EY9.59%
EPS(NY)2.01
Fwd EY10.21%
FCF(TTM)1.9
FCFY9.66%
OCF(TTM)1.9
OCFY9.66%
SpS5.86
BVpS18.96
TBVpS18.02
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
WACC6.85%
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-6.9%
EPS Next 2Y-0.44%
EPS Next 3Y1.07%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.07%
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-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