Stratus Properties (STRS) AI Stock Analysis

• Market Cap: $143.29M
• Dividend Yield: N/A
• Average Volume (3M): 8.02K
• Price to Earnings (P/E): 73.2
• Beta (1Y): 1.31
• Revenue Growth: 213.74%
• EPS Growth: N/A
• Country: US
• Employees: 34
• Sector: Real Estate
• Sector Strength: 70
• Industry: Real Estate - Diversified
• EPS (TTM): 0.24
• Shares Outstanding: 8,072,897
• 10 Day Avg. Volume: 7,645
• 30 Day Avg. Volume: 8,019
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.05
• Price to Cash Flow (P/CF): -53.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Stratus Properties demonstrates strong revenue growth and strategic financial management, but faces challenges with cash flow and valuation. The stock is currently on a downward technical trend, and the high P/E ratio suggests it may be overvalued. While corporate events reflect positive strategic moves, they are not factored into the overall score calculation.

Stratus Properties Business Overview & Revenue Model

Company Description

Stratus Properties Inc. (STRS) is a diversified real estate company based in Austin, Texas. It specializes in the acquisition, development, management, and sale of commercial, multi-family, and residential real estate properties. The company operates primarily in the Central Texas region, focusing on projects that include residential subdivisions, retail and mixed-use properties, and master-planned communities. Stratus Properties is known for its strategic land holdings and development expertise that cater to the growing demand in one of the fastest-growing metropolitan areas in the United States.

How the Company Makes Money

Stratus Properties Inc. generates revenue through a combination of property sales, leasing, and management operations. A significant portion of its income comes from the sale of developed residential lots and homes in its master-planned communities. Additionally, the company earns revenue from leasing operations, which include rental income from its commercial and mixed-use properties. Stratus also benefits from property management fees and development services. The company's strategic partnerships and joint ventures with other real estate developers and investors often enhance its project capabilities and financial returns. Furthermore, Stratus may engage in opportunistic property acquisitions and dispositions, which can result in capital gains contributing to its earnings.

Stratus Properties Financial Statement Overview

Summary

Stratus Properties shows strong revenue growth and improved profitability, with a significant increase in revenue and improved gross profit margin. However, the company faces challenges with cash flow constraints, evidenced by negative free cash flow, despite a robust balance sheet with no debt.

Income Statement

Stratus Properties showed significant revenue growth from $17.27M in 2023 to $54.18M in 2024, indicating a strong upward trend. The gross profit margin improved significantly to 100%, as the company managed to cover all costs, a positive shift from previous losses. The net profit margin is modest at 3.61%, reflecting profitability challenges despite revenue growth. EBIT margin is strong at 72.41%, showing effective cost management before interest and taxes; however, the EBITDA margin is lower at 13.06%, suggesting some non-operational costs affecting cash earnings.

Balance Sheet

The balance sheet reflects a solid equity base with no debt, resulting in a favorable debt-to-equity ratio of 0. The return on equity (ROE) is low at 1.00%, indicating limited returns relative to shareholder investment. The equity ratio is healthy at 36.54%, suggesting a strong equity position relative to total assets, which enhances financial stability and reduces risk.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow, though it improved slightly from -$97.22M in 2023 to -$34.98M in 2024, indicating better cash management. The operating cash flow to net income ratio is negative, suggesting operational inefficiencies in converting income into cash. However, there is a positive trend in financing activities, reflecting potential strategic investments or debt management efforts.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
48.16M	54.18M	17.27M	37.50M	28.24M	61.02M
	Gross Profit
9.81M	54.18M	-1.78M	5.71M	4.02M	-6.00M
	EBIT
-3.43M	39.23M	-16.95M	-11.86M	-20.48M	-6.04M
	EBITDA
508.00K	7.08M	-12.69M	-8.27M	-10.52M	7.20M
	Net Income Common Stockholders
1.60M	1.96M	-14.81M	-7.08M	57.39M	-24.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.91M	20.18M	31.40M	37.67M	24.23M	12.43M
	Total Assets
349.66M	532.61M	517.77M	445.14M	541.23M	544.02M
	Total Debt
87.74M	0.00	191.03M	142.98M	120.63M	364.32M
	Net Debt
81.83M	-20.18M	159.64M	105.31M	96.41M	351.89M
	Total Liabilities
123.31M	235.04M	223.16M	173.07M	332.61M	434.25M
	Stockholders Equity
141.68M	194.71M	191.48M	207.25M	158.14M	98.91M
Cash Flow		Free Cash Flow
-47.10M	-34.98M	-97.22M	-110.07M	-73.17M	-10.25M
	Operating Cash Flow
-14.36M	-5.84M	-51.25M	-55.26M	-53.61M	-4.06M
	Investing Cash Flow
-25.09M	-21.54M	-46.95M	50.00M	188.94M	-7.82M
	Financing Cash Flow
23.39M	16.10M	84.93M	-19.17M	-99.37M	7.47M

Stratus Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRS, the sentiment is Negative. The current price of 17.32 is below the 20-day moving average (MA) of 18.19, below the 50-day MA of 18.78, and below the 200-day MA of 23.15, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 11.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STRS.

Stratus Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHO	76 Outperform	$3.10B	5.80	20.66%	―	11.84%	21.14%
FOR	66 Neutral	$1.07B	5.94	12.04%	―	-4.72%	-2.38%
FRPH	62 Neutral	$545.33M	85.91	1.52%	―	0.65%	19.89%
Sector *	61 Neutral	$4.72B	17.64	-3.07%	10.89%	5.99%	-21.86%
NXRT	60 Neutral	$1.01B	934.52	0.25%	4.80%	-6.42%	-98.33%
TRC	51 Neutral	$425.86M	159.04	0.57%	―	-6.38%	-17.99%
STRS	50 Neutral	$143.29M	73.23	1.04%	―	213.74%	―

Stratus Properties Corporate Events

Stratus Properties Reports Financial Turnaround in 2024

Stratus Properties Inc. reported a significant financial turnaround for the year ended December 31, 2024, with a net income of $2.0 million compared to a net loss of $14.8 million in 2023. The company achieved a revenue increase to $54.2 million, driven by sales of Amarra Villas homes, undeveloped land at Magnolia Place, and the lease-up of The Saint June. Stratus also advanced several construction projects, refinanced loans, and repurchased shares, reflecting a strategic focus on residential projects in high-demand Texas locations.

Stratus Properties Refinances Loan for Jones Crossing

On March 7, 2025, Stratus Properties Inc., through its subsidiary College Station 1892 Properties, L.L.C., refinanced a $24.0 million loan for the Jones Crossing Retail Project in College Station, Texas, which is anchored by an H-E-B grocery store. The new loan, maturing on April 1, 2028, offers a lower interest rate and resulted in net cash proceeds of approximately $1.2 million to Stratus. This refinancing aligns with Stratus’s strategy to capitalize on lower interest rates and extend debt maturities, aiming to retain cash-flowing properties while anticipating improvements in real estate market conditions, ultimately benefiting the company and its shareholders.

Stratus Properties Refinances Lantana Loan for $29.8M

On January 22, 2025, Lantana Place, L.L.C., a wholly-owned subsidiary of Stratus Properties Inc., entered into a loan agreement with Broadway National Bank to refinance the construction loan for the Lantana Place retail property in Austin. The new $29.8 million loan, which matures on February 1, 2029, offers a lower interest rate and provides interest-only payments for the first year, resulting in a $3.0 million distribution to Stratus. This refinancing strategy aligns with Stratus’s approach of capitalizing on lower interest rates and extending debt maturities, aiming to benefit from improved real estate market conditions, thus benefiting the company and its shareholders.