Starwood Property Trust, Inc. (STWD) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Starwood Property Trust's price-to-book of 0.75 is below the Miscellaneous Investing median of 1.20.

Trading below fair value

The share price of $11.79 is below our fair value estimate of $19.64.

Margin of safety over 20%

The price is 40.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 8.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -25.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -164% over the last twelve months, against a 5-year average of 4.4% a year.

Growing faster than the industry

Revenue grew 14.4% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was -3.7% over the last twelve months and averaged 7.9% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity below the industry

Starwood Property Trust's return on equity of -3.7% is below the Miscellaneous Investing median of 3.1%.

Earnings grew over 5 years

Net income grew 4.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -11.3% over the last twelve months, against a 5-year average of 31.0%.

Net margin below the industry

Starwood Property Trust's net margin of -11.3% is below the Miscellaneous Investing median of 10.3%.

No debt

Starwood Property Trust has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.06; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Starwood Property Trust paid dividends worth 16.3% of the share price over the last twelve months.

Yield above Treasuries

The 16.3% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Starwood Property Trust yields 16.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.