NYSE:STWD

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with high growth potential and pays a dividend.


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

Stable Share Price: STWD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

STWD

-0.7%

US Mortgage REITs

2.3%

US Market


1 Year Return

-40.7%

STWD

-43.0%

US Mortgage REITs

6.7%

US Market

Return vs Industry: STWD exceeded the US Mortgage REITs industry which returned -43% over the past year.

Return vs Market: STWD underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

STWDIndustryMarket
7 Day-4.9%-0.7%2.3%
30 Day-9.5%-3.6%7.4%
90 Day-3.7%9.1%17.9%
1 Year-33.9%-40.7%-36.4%-43.0%9.0%6.7%
3 Year-17.1%-37.7%-26.2%-47.2%36.6%27.7%
5 Year0.4%-37.0%-0.1%-43.0%64.2%46.1%

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?

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STWD ($13.79) is trading below our estimate of fair value ($20.21)

Significantly Below Fair Value: STWD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STWD is good value based on its PE Ratio (10.5x) compared to the US Mortgage REITs industry average (20.1x).

PE vs Market: STWD is good value based on its PE Ratio (10.5x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: STWD is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: STWD is overvalued based on its PB Ratio (0.9x) compared to the US Mortgage REITs industry average (0.6x).


Next Steps

Future Growth

How is Starwood Property Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

30.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STWD's forecast earnings growth (30.9% per year) is above the savings rate (2.2%).

Earnings vs Market: STWD's earnings (30.9% per year) are forecast to grow faster than the US market (22.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STWD's revenue (21.6% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: STWD's revenue (21.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if STWD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STWD has a large one-off gain of $213.9M impacting its March 31 2020 financial results.

Growing Profit Margin: STWD's current net profit margins (57%) are higher than last year (52.1%).


Past Earnings Growth Analysis

Earnings Trend: STWD's earnings have declined by -1.9% per year over the past 5 years.

Accelerating Growth: STWD's earnings growth over the past year (4.4%) exceeds its 5-year average (-1.9% per year).

Earnings vs Industry: STWD earnings growth over the past year (4.4%) exceeded the Mortgage REITs industry -42.8%.


Return on Equity

High ROE: STWD's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Starwood Property Trust's financial position?


Financial Position Analysis

Short Term Liabilities: STWD's short term assets ($12.8B) exceed its short term liabilities ($375.8M).

Long Term Liabilities: STWD's short term assets ($12.8B) do not cover its long term liabilities ($72.4B).


Debt to Equity History and Analysis

Debt Level: STWD's debt to equity ratio (260.6%) is considered high.

Reducing Debt: STWD's debt to equity ratio has increased from 132.2% to 260.6% over the past 5 years.

Debt Coverage: STWD's debt is not well covered by operating cash flow (2.2%).

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


Balance Sheet


Next Steps

Dividend

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

13.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STWD's dividend (13.92%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: STWD's dividend (13.92%) is in the top 25% of dividend payers in the US market (4.6%)


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 (146.1%), STWD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STWD's dividends in 3 years are not forecast to be well covered by earnings (93.9% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Barry Sternlicht (59yo)

11.5yrs

Tenure

Mr. Barry Stuart Sternlicht serves as Chairman of Jaws Acquisition Corp. Mr. Sternlicht serves as Chairman of the Board at Starwood Real Estate Income Trust, Inc. since June 2017. He has been the Director  ...


Leadership Team

NamePositionTenureCompensationOwnership
Barry Sternlicht
Chairman & CEO11.5yrsno data3.3% $128.3m
Jeffrey DiModica
President & MD5.83yrsUS$4.55m0.17% $6.4m
Rina Paniry
CFO, Treasurer6.17yrsUS$2.67m0.094% $3.7m
Andrew Sossen
COO, General Counsel9yrsUS$2.48m0.078% $3.0m
Zachary Tanenbaum
Director of Investor Relationsno datano datano data
Mark Cagley
Chief Credit Officer5.08yrsno datano data
Dennis Schuh
Chief Originations Officer4.08yrsno datano data
Cary Carpenter
Managing Directorno datano datano data
Denise Tait
President of Starwood Infrastructure Finance1.67yrsno datano data
Rich Highfield
President of Starwood Mortgage Capitalno datano datano data

5.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: STWD's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Barry Sternlicht
Chairman & CEO11.5yrsno data3.3% $128.3m
Strauss Zelnick
Independent Director11.5yrsUS$259.44k0.020% $791.7k
Jeffrey Dishner
Director11.5yrsno data0.17% $6.6m
Richard Bronson
Lead Independent Directorno dataUS$286.94k0.023% $888.2k
Lawrence Brown
Chairman of Starwood Mortgage Capital1.5yrsno datano data
Fred Ridley
Independent Director1.83yrsUS$221.94k0.0035% $136.2k
Camille Douglas
Independent Director10.5yrsUS$231.94k0.013% $495.1k
Solomon Kumin
Independent Director6yrsUS$229.44k0.011% $415.3k

10.5yrs

Average Tenure

63yo

Average Age

Experienced Board: STWD's board of directors are seasoned and experienced ( 10.5 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 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$3.892b
  • Shares outstanding: 282.25m
  • 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 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, 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. The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments. The Property segment acquires and manages equity interests in commercial real estate properties, including multi-family properties. The Investing and Servicing segment manages and works out problem assets; acquires and manages unrated, investment grade, and non-investment grade rated CMBS, including subordinated interests of securitization and re-securitization transactions; originates conduit loans for the primary purpose of selling these loans into securitization transactions; and acquires commercial real estate assets, including properties acquired from CMBS trusts. The company qualifies as a REIT for federal income tax purposes and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. Starwood Property Trust, Inc. was founded in 2009 and is headquartered in Greenwich, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 23:55
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.