Starwood Property Trust, Inc. (STWD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Federal Realty Investment Trust

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CubeSmart

STAG Industrial, Inc.

Lamar Advertising Co.

Starwood Property Trust, Inc.

Americold Realty Trust, Inc.

Why is Starwood Property Trust, Inc. ?

Strong Long Term Fundamental Strength with a 12.69% CAGR growth in Operating Profits

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 256.6 MM
NET SALES(HY) At USD 894.12 MM has Grown at -19.07%
DEBTORS TURNOVER RATIO(HY) Lowest at 10.12 times

With ROE of 4.88%, it has a very attractive valuation with a 1.09 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.33%, its profits have fallen by -28.4%
At the current price, the company has a high dividend yield of 857

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.33% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Starwood Property Trust, Inc. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Starwood Property Trust, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Starwood Property Trust, Inc.

-16.5%

-0.13

21.01%

S&P 500

22.93%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.72%

EBIT Growth (5y)

15.57%

EBIT to Interest (avg)

1.95

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

7.67%

Dividend Payout Ratio

167.01%

Pledged Shares

Institutional Holding

63.76%

ROCE (avg)

29.06%

ROE (avg)

8.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.95

EV to EBIT

3.94

EV to EBITDA

3.73

EV to Capital Employed

0.94

EV to Sales

3.05

PEG Ratio

Dividend Yield

932.27%

ROCE (Latest)

23.89%

ROE (Latest)

5.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 598.36 MM

NET SALES(Q)

Highest at USD 513.13 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 357.14%

CASH AND EQV(HY)

Highest at USD 1,340.71 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 12.4 times

-10What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 337.16 %

PRE-TAX PROFIT(Q)

Lowest at USD 53.81 MM

NET PROFIT(Q)

Lowest at USD 49.64 MM

EPS(Q)

Lowest at USD 0.13

Here's what is working for Starwood Property Trust, Inc.

Operating Cash Flow

Highest at USD 598.36 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 513.13 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 1,340.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 12.4 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 357.14%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Starwood Property Trust, Inc.

Pre-Tax Profit

At USD 53.81 MM has Fallen at -53.42%

over average net sales of the previous four periods of USD 115.53 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 49.64 MM has Fallen at -48.35%

over average net sales of the previous four periods of USD 96.11 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

Lowest at USD 53.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 49.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 337.16 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio