NYSE:STWD

Stock Analysis Report

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Market Cap

US$7.3b

Last Updated

2021/06/21 06:37 UTC

Data Sources

Company Financials +

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 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.


Market Performance


7 Day Return

-4.8%

STWD

-3.7%

US Mortgage REITs

-1.9%

US Market


1 Year Return

64.2%

STWD

43.8%

US Mortgage REITs

38.2%

US Market

Return vs Industry: STWD exceeded the US Mortgage REITs industry which returned 43.8% over the past year.

Return vs Market: STWD exceeded the US Market which returned 38.2% over the past year.


Shareholder returns

STWDIndustryMarket
7 Day-4.8%-3.7%-1.9%
30 Day1.7%1.1%1.0%
90 Day4.2%3.1%3.8%
1 Year82.7%64.2%57.8%43.8%40.4%38.2%
3 Year51.4%12.9%10.9%-18.5%57.5%47.8%
5 Year101.6%25.9%51.6%-10.7%127.2%101.7%

Long-Term 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?

14.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STWD ($25.29) is trading above our estimate of fair value ($19.81)

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 (14.2x) compared to the US Mortgage REITs industry average (7.8x).

PE vs Market: STWD is good value based on its PE Ratio (14.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: STWD is poor value based on its PEG Ratio (2.3x)


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 (1x).


Future Growth

How is Starwood Property Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STWD's forecast earnings growth (6.3% per year) is above the savings rate (2%).

Earnings vs Market: STWD's earnings (6.3% per year) are forecast to grow slower than the US market (15.8% per year).

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

Revenue vs Market: STWD's revenue (25% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: STWD's revenue (25% 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


Past Performance

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

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STWD has a large one-off gain of $163.1M impacting its March 31 2021 financial results.

Growing Profit Margin: STWD's current net profit margins (70.6%) are higher than last year (57%).


Past Earnings Growth Analysis

Earnings Trend: STWD's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: STWD's earnings growth over the past year (36.8%) exceeds its 5-year average (2.1% per year).

Earnings vs Industry: STWD earnings growth over the past year (36.8%) underperformed the Mortgage REITs industry 53.9%.


Return on Equity

High ROE: STWD's Return on Equity (11.4%) is considered low.


Financial Health

How is Starwood Property Trust's financial position?


Financial Position Analysis

Short Term Liabilities: STWD's short term assets ($13.8B) exceed its short term liabilities ($384.3M).

Long Term Liabilities: STWD's short term assets ($13.8B) do not cover its long term liabilities ($74.5B).


Debt to Equity History and Analysis

Debt Level: STWD's debt to equity ratio (279.5%) is considered high.

Reducing Debt: STWD's debt to equity ratio has increased from 144.6% to 279.5% over the past 5 years.

Debt Coverage: STWD's debt is not well covered by operating cash flow (8.3%).

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?

7.59%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 21 2021Ex Dividend DateJun 29 2021Dividend Pay DateJul 15 202116 days from Ex DividendBuy in the next 7 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: STWD's dividend (7.59%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: STWD's dividend (7.59%) is in the top 25% of dividend payers in the US market (3.49%)


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 (107.7%), 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 (89.4% payout ratio).


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Barry Sternlicht (59 yo)

12.42yrs

Tenure

Mr. Barry Stuart Sternlicht is the Chairman of Jaws Spitfire Acquisition Corporation since December 2020. He serves as Chief Executive Officer of Jaws Estates Capital LLC. He serves as Director at Cano Hea...


Leadership Team

Experienced Management: STWD's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: STWD's board of directors are considered experienced (9.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: STWD insiders have only sold shares 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$7.258b
  • Shares outstanding: 286.99m
  • Website: https://www.starwoodpropertytrust.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/21 06:37
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
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.