NYSE:STWD

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Starwood Property Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

STWD

1.9%

US Mortgage REITs

0.07%

US Market


1 Year Return

14.4%

STWD

-1.3%

US Mortgage REITs

8.9%

US Market

Return vs Industry: STWD exceeded the US Mortgage REITs industry which returned -1.3% over the past year.

Return vs Market: STWD exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

STWDIndustryMarket
7 Day1.3%1.9%0.07%
30 Day-0.04%0.6%-0.3%
90 Day7.2%-0.1%-1.6%
1 Year24.6%14.4%9.9%-1.3%11.3%8.9%
3 Year43.3%10.3%38.4%-0.08%46.3%36.8%
5 Year71.9%10.8%57.3%-9.5%62.1%44.3%

Price Volatility Vs. Market

How volatile is Starwood Property Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

18.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STWD ($24.68) is trading above our estimate of fair value ($22.19)

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 (18.2x) compared to the Mortgage REITs industry average (12.6x).

PE vs Market: STWD is poor value based on its PE Ratio (18.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: STWD is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: STWD is overvalued based on its PB Ratio (1.5x) compared to the US Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is Starwood Property Trust forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STWD's forecast earnings growth (9.1% per year) is above the savings rate (2.7%).

Earnings vs Market: STWD's earnings (9.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: STWD's revenue (33.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: STWD's revenue (33.4% per year) is forecast to grow faster 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%).


Next Steps

Past Performance

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

-5.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STWD's earnings have declined by -5.2% per year over the past 5 years.

Accelerating Growth: STWD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STWD had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the Mortgage REITs industry average (5.2%).


Return on Equity

High ROE: STWD's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: STWD's Return on Assets is below or equal to the Mortgage REITs industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate STWD's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Starwood Property Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: STWD has a low level of unsold assets or inventory.

Debt Coverage by Assets: STWD's debt is not covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

Asset Level: STWD's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if STWD has a sufficient allowance for bad loans.

Low Risk Liabilities: STWD reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if STWD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: STWD has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if STWD has an appropriate level of bad loans.


Next Steps

Dividend

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

7.78%

Current Dividend Yield


Dividend Yield vs Market

company7.8%marketbottom25%1.4%markettop25%3.7%industryaverage10.2%forecastin3Years7.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STWD's dividend (7.78%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: STWD's dividend (7.78%) is in the top 25% of dividend payers in the US market (3.68%)

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 (142%), 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 (88.2% payout ratio).


Next Steps

Management

What is the CEO of Starwood Property Trust's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Barry Sternlicht (58yo)

10.8yrs

Tenure

0

Mr. Barry Stuart Sternlicht has been the Director at LOG Commercial Properties e Participações S.A. Mr. Sternlicht serves as the Director at Invitation Homes Inc.; Starwood Real Estate Income Trust, Inc. a ...


Management Age and Tenure

5.1yrs

Average Tenure

48.5yo

Average Age

Experienced Management: STWD's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

9.8yrs

Average Tenure

62yo

Average Age

Experienced Board: STWD's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

Insider Buying: STWD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$312,13010 Sep 19
Rina Paniry
EntityIndividual
Role
Chief Financial Officer
CFO, Treasurer & Chief Accounting Officer
Shares13,000
Max PriceUS$24.01
SellUS$712,20010 Sep 19
Jeffrey DiModica
EntityIndividual
Role
President
President & MD
Shares30,000
Max PriceUS$23.74
SellUS$712,50010 Sep 19
Andrew Sossen
EntityIndividual
Role
Chief Operating Officer
COO, General Counsel
Shares30,000
Max PriceUS$23.75

Ownership Breakdown


Management Team

  • Barry Sternlicht (58yo)

    Chairman & CEO

    • Tenure: 10.8yrs
  • Cary Carpenter

    Managing Director

    • Tenure: 0yrs
  • Andrew Sossen (42yo)

    COO, General Counsel

    • Tenure: 8.3yrs
    • Compensation: US$2.40m
  • Zach Tanenbaum

    Director of Investor Relations

    • Tenure: 0yrs
  • Jeff DiModica (52yo)

    President & MD

    • Tenure: 5.1yrs
    • Compensation: US$4.40m
  • Rina Paniry (45yo)

    CFO, Treasurer & Chief Accounting Officer

    • Tenure: 5.4yrs
    • Compensation: US$3.56m
  • Mark Cagley

    Chief Credit Officer

    • Tenure: 4.3yrs
  • Dennis Schuh

    Chief Originations Officer

    • Tenure: 3.3yrs
  • Denise Tait

    President of Starwood Infrastructure Finance

    • Tenure: 0.9yrs
  • Rich Highfield

    President of Starwood Mortgage Capital

    • Tenure: 0yrs

Board Members

  • Barry Sternlicht (58yo)

    Chairman & CEO

    • Tenure: 10.8yrs
  • Strauss Zelnick (62yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$250.01k
  • Jeff Dishner (54yo)

    Director

    • Tenure: 10.8yrs
  • Skip Bronson (74yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$277.51k
  • Larry Brown

    Executive Chairman of Starwood Mortgage Capital

    • Tenure: 0.8yrs
  • Fred Ridley (66yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$161.26k
  • Camille Douglas (67yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$222.51k
  • Sol Kumin (43yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$220.01k

Company Information

Starwood Property Trust, Inc.'s company bio, 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$6.947b
  • Shares outstanding: 281.48m
  • Website: https://www.starwoodpropertytrust.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STWDNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2009
VSPDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2009
0L9FLSE (London Stock Exchange)YesCommon StockGBUSDAug 2009
STWD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 2009

Biography

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 Lendin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:05
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.