STWD

Starwood Property TrustNYSE:STWD Stock Report

Market Cap

US$7.1b

7D

1.3%

1Y

54.1%

Updated

18 Sep, 2021

Data

Company Financials +
STWD fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance3/6
Financial Health1/6
Dividends5/6

STWD Overview

Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States and Europe.

Starwood Property Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Starwood Property Trust
Historical stock prices
Current Share PriceUS$24.79
52 Week HighUS$13.76
52 Week LowUS$27.01
Beta1.71
1 Month Change-2.36%
3 Month Change-1.98%
1 Year Change54.07%
3 Year Change13.30%
5 Year Change7.78%
Change since IPO23.95%

Recent News & Updates

Sep 03
With EPS Growth And More, Starwood Property Trust (NYSE:STWD) Is Interesting

With EPS Growth And More, Starwood Property Trust (NYSE:STWD) Is Interesting

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Jul 05

Starwood Property Trust Gives You Yield And Growth

Starwood maintained its fat 7% dividend throughout the pandemic, and CEO Barry Sternlicht has stated that he's "pretty confident" that it will be paid for "quite some time" With multiple streams of income, Starwood has bounced back from the pandemic and continues to benefit as the economy returns to normal and workers return to the office. Starwood issues the vast majority of its loans with floating rates and thus has built-in inflation protection. Starwood is one of a group of durable hybrid REITs that showed their strength during the 2020 stress test and have performed better than less diversified companies.

Jun 02
Is Now The Time To Put Starwood Property Trust (NYSE:STWD) On Your Watchlist?

Is Now The Time To Put Starwood Property Trust (NYSE:STWD) On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

STWDUS Mortgage REITsUS Market
7D1.3%1.3%-0.6%
1Y54.1%31.2%33.8%

Return vs Industry: STWD exceeded the US Mortgage REITs industry which returned 29.9% over the past year.

Return vs Market: STWD exceeded the US Market which returned 33.6% over the past year.

Price Volatility

Is STWD's price volatile compared to industry and market?
STWD volatility
STWD Beta1.71
Industry Beta1.48
Market Beta1

Stable Share Price: STWD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: STWD's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009282Barry Sternlichthttps://www.starwoodpropertytrust.com

Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States and Europe. It operates through four segments: Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing segments. The Commercial and Residential Lending segment originates, acquires, finances, and manages commercial and residential first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities, and other real estate and real estate-related debt investments.

Starwood Property Trust Fundamentals Summary

How do Starwood Property Trust's earnings and revenue compare to its market cap?
STWD fundamental statistics
Market CapUS$7.15b
Earnings (TTM)US$479.92m
Revenue (TTM)US$753.20m

14.9x

P/E Ratio

9.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STWD income statement (TTM)
RevenueUS$753.20m
Cost of RevenueUS$120.97m
Gross ProfitUS$632.23m
ExpensesUS$152.30m
EarningsUS$479.92m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.69
Gross Margin83.94%
Net Profit Margin63.72%
Debt/Equity Ratio290.8%

How did STWD perform over the long term?

See historical performance and comparison

Dividends

7.7%

Current Dividend Yield

113%

Payout Ratio

Valuation

Is Starwood Property Trust undervalued compared to its fair value and its price relative to the market?

14.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STWD ($24.79) is trading above our estimate of fair value ($15.02)

Significantly Below Fair Value: STWD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STWD is poor value based on its PE Ratio (14.9x) compared to the US Mortgage REITs industry average (9.5x).

PE vs Market: STWD is good value based on its PE Ratio (14.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: STWD is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: STWD is overvalued based on its PB Ratio (1.6x) compared to the US Mortgage REITs industry average (0.9x).


Future Growth

How is Starwood Property Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STWD's forecast earnings growth (5.8% per year) is above the savings rate (2%).

Earnings vs Market: STWD's earnings (5.8% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: STWD's earnings are forecast to grow, but not significantly.

Revenue vs Market: STWD's revenue (19.6% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: STWD's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STWD's Return on Equity is forecast to be low in 3 years time (13.9%).


Past Performance

How has Starwood Property Trust performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STWD has a large one-off gain of $178.5M impacting its June 30 2021 financial results.

Growing Profit Margin: STWD's current net profit margins (63.7%) are higher than last year (61%).


Past Earnings Growth Analysis

Earnings Trend: STWD's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: STWD's earnings growth over the past year (26.1%) exceeds its 5-year average (2.6% per year).

Earnings vs Industry: STWD earnings growth over the past year (26.1%) underperformed the Mortgage REITs industry 45.5%.


Return on Equity

High ROE: STWD's Return on Equity (10.9%) is considered low.


Financial Health

How is Starwood Property Trust's financial position?


Financial Position Analysis

Short Term Liabilities: STWD's short term assets ($14.2B) exceed its short term liabilities ($376.3M).

Long Term Liabilities: STWD's short term assets ($14.2B) do not cover its long term liabilities ($76.1B).


Debt to Equity History and Analysis

Debt Level: STWD's debt to equity ratio (290.8%) is considered high.

Reducing Debt: STWD's debt to equity ratio has increased from 144.4% to 290.8% over the past 5 years.

Debt Coverage: STWD's debt is not well covered by operating cash flow (4%).

Interest Coverage: Insufficient data to determine if STWD's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Starwood Property Trust current dividend yield, its reliability and sustainability?

7.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STWD's dividend (7.75%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: STWD's dividend (7.75%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: STWD's dividends per share have been stable in the past 10 years.

Growing Dividend: STWD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (113.4%), STWD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STWD's dividends in 3 years are forecast to be covered by earnings (89.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Barry Sternlicht (60 yo)

12.67yrs

Tenure

Mr. Barry Stuart Sternlicht has been the Chairman of Jaws Spitfire Acquisition Corporation since December 2020. Mr. Sternlicht serves as the Chairman of the board of directors at JAWS Juggernaut Acquisitio...


Leadership Team

Experienced Management: STWD's management team is seasoned and experienced (6.6 years average tenure).


Board Members

Experienced Board: STWD's board of directors are considered experienced (9.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Starwood Property Trust, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Starwood Property Trust, Inc.
  • Ticker: STWD
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$7.146b
  • Shares outstanding: 288.28m
  • Website: https://www.starwoodpropertytrust.com

Number of Employees


Location

  • Starwood Property Trust, Inc.
  • 591 West Putnam Avenue
  • Greenwich
  • Connecticut
  • 6830
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 00:52
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.