iStar (NYSE:STAR) - Share price, News & Analysis

STAR fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	1/6

STAR Stock Overview

Rewards

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 83.6% per year for the next 3 years

Dividend of 3% is not well covered by earnings or forecast to be in the next 3 years

Large one-off items impacting financial results

Shareholders have been diluted in the past year

iStar Competitors

Annaly Capital Management

NYSE:NLY

US$9.9b

Starwood Property Trust

NYSE:STWD

US$6.9b

AGNC Investment

NasdaqGS:AGNC

US$6.2b

Blackstone Mortgage Trust

NYSE:BXMT

US$5.0b

Price History & Performance

Summary of all time highs, changes and price drops for iStar
Historical stock prices
Current Share Price	US$16.68
52 Week High	US$27.75
52 Week Low	US$15.10
Beta	0.88
1 Month Change	-8.90%
3 Month Change	-33.28%
1 Year Change	-3.97%
3 Year Change	73.93%
5 Year Change	36.16%
Change since IPO	-85.47%

Shareholder Returns

	STAR	US REITs	US Market
7D	-1.9%	-2.0%	-2.7%
1Y	-4.0%	-2.0%	-12.9%

Return vs Industry: STAR underperformed the US REITs industry which returned -2% over the past year.

Return vs Market: STAR exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is STAR's price volatile compared to industry and market?
STAR volatility
STAR Average Weekly Movement	6.4%
REITs Industry Average Movement	4.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: STAR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: STAR's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	144	Jay Sugarman	https://www.istar.com

iStar Inc. (NYSE: STAR) is focused on reinventing the ground lease sector, unlocking value for real estate owners throughout the country by providing modern, more efficient ground leases on all types of properties. As the founder, investment manager and largest shareholder of Safehold Inc. (NYSE: SAFE), the first publicly traded company to focus on modern ground leases, iStar is helping create a logical new approach to the way real estate is owned, and continues to use its historic strengths in finance and net lease to expand this unique platform. Recognized as a consistent innovator in the real estate markets, iStar specializes in identifying and scaling newly discovered opportunities and has completed more than $40 billion of transactions over the past two decades.

iStar Fundamentals Summary

How do iStar's earnings and revenue compare to its market cap?
STAR fundamental statistics
Market Cap	US$1.38b
Earnings (TTM)	US$5.74m
Revenue (TTM)	US$370.21m

240.9x

P/E Ratio

3.7x

P/S Ratio

Is STAR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
STAR income statement (TTM)
Revenue	US$370.21m
Cost of Revenue	US$200.22m
Gross Profit	US$169.99m
Other Expenses	US$164.25m
Earnings	US$5.74m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.069
Gross Margin	45.92%
Net Profit Margin	1.55%
Debt/Equity Ratio	116.8%

How did STAR perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

-125%

Payout Ratio

Does STAR pay a reliable dividends?

See STAR dividend history and benchmarks

When do you need to buy STAR by to receive an upcoming dividend?
iStar dividend dates
Ex Dividend Date	May 31 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	9 days
Days until Dividend pay date	24 days

Does STAR pay a reliable dividends?

See STAR dividend history and benchmarks

Valuation

Is iStar undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

240.94x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: STAR ($16.68) is trading above our estimate of fair value ($5.53)

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

Price To Earnings Ratio

PE vs Industry: STAR is poor value based on its PE Ratio (240.9x) compared to the US REITs industry average (33.5x).

PE vs Market: STAR is poor value based on its PE Ratio (240.9x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: STAR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: STAR is good value based on its PB Ratio (1x) compared to the US REITs industry average (1.7x).

Future Growth

How is iStar forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-83.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAR's earnings are forecast to decline over the next 3 years (-83.6% per year).

Earnings vs Market: STAR's earnings are forecast to decline over the next 3 years (-83.6% per year).

High Growth Earnings: STAR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: STAR's revenue is expected to decline over the next 3 years (-43% per year).

High Growth Revenue: STAR's revenue is forecast to decline over the next 3 years (-43% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has iStar performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-19.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STAR has a large one-off gain of $102.4M impacting its March 31 2022 financial results.

Growing Profit Margin: STAR became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: STAR has become profitable over the past 5 years, growing earnings by -19% per year.

Accelerating Growth: STAR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: STAR has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (69.5%).

Return on Equity

High ROE: STAR's Return on Equity (1.6%) is considered low.

Financial Health

How is iStar's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: STAR's short term assets ($1.8B) exceed its short term liabilities ($177.2M).

Long Term Liabilities: STAR's short term assets ($1.8B) do not cover its long term liabilities ($2.1B).

Debt to Equity History and Analysis

Debt Level: STAR's net debt to equity ratio (32.7%) is considered satisfactory.

Reducing Debt: STAR's debt to equity ratio has reduced from 391% to 116.8% over the past 5 years.

Debt Coverage: STAR's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: STAR's interest payments on its debt are not well covered by EBIT (0.4x coverage).

Balance Sheet

Dividend

What is iStar current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.00%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: STAR's dividend (3%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: STAR's dividend (3%) is low compared to the top 25% of dividend payers in the US market (4.11%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, STAR has been paying a dividend for less than 10 years.

Growing Dividend: STAR's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: STAR is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: STAR is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure

CEO

Jay Sugarman (58 yo)

25.33yrs

Tenure

US$2,327,438

Compensation

Mr. Jay S. Sugarman has been the Executive Chairman of the Board and Chief Executive Officer of iStar Inc. since founded in 1997. Mr. Sugarman serves as Chief Executive Officer of iStar Marlin LLC. He has...

CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD2.33M) is below average for companies of similar size in the US market ($USD5.44M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: STAR's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: STAR's board of directors are considered experienced (6.8 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 been diluted in the past year, with total shares outstanding growing by 13.1%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31