Stratus Properties (STRS) AI Stock Analysis

• Market Cap: $166.46M
• Dividend Yield: N/A
• Average Volume (3M): 16.87K
• Price to Earnings (P/E): 84.8
• Beta (1Y): 1.15
• Revenue Growth: -13.84%
• EPS Growth: -28.27%
• Country: US
• Employees: 34
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): -0.36
• Shares Outstanding: 8,072,556
• 10 Day Avg. Volume: 31,827
• 30 Day Avg. Volume: 16,873
• PEG Ratio: 0.20
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.44
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 80.57
• Enterprise Value/Ebitda: -75.68
• 1Y Price Target: $21.00
• Price Target Upside: 10.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: $20.00 ▲(5.32%Upside)

Stratus Properties' overall score reflects strong financial performance and positive corporate events, offset by valuation concerns. Revenue growth and strategic initiatives support future potential, but cash flow challenges and a negative P/E ratio weigh on the score. The technical outlook suggests neutral to positive market trends.

Stratus Properties Business Overview & Revenue Model

Company Description

Stratus Properties Inc., a real estate company, engages in the acquisition, entitlement, development, management, and sale of commercial, and multi-and single-family residential real estate properties primarily in Texas. The company operates in two segments, Real Estate Operations and Leasing Operations. Its leasing operations cover lease of space at retail and mixed-use, and multi-family properties. Stratus Properties Inc. was incorporated in 1992 and is headquartered in Austin, Texas.

How the Company Makes Money

Stratus Properties makes money primarily through the development and sale of residential and commercial properties. Revenue is generated from the sale of developed lots and parcels, rental income from properties they manage, and the operation and management of hotel and entertainment facilities. The company also engages in strategic partnerships and joint ventures to enhance its development capabilities and expand its reach. Additionally, Stratus may earn income through property management fees and ancillary services associated with its real estate holdings.

Stratus Properties Financial Statement Overview

Summary

Stratus Properties displays significant revenue growth and improved profitability with a strong EBIT margin. However, cash flow constraints due to negative free cash flow and operational inefficiencies remain challenges. The balance sheet is strong due to zero debt, enhancing financial stability.

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	32.72M	54.18M	17.27M	37.50M	28.24M	61.02M
Gross Profit	3.28M	11.17M	-1.78M	5.71M	4.02M	-6.00M
EBITDA	-5.71M	1.78M	-12.69M	-8.27M	-10.52M	7.20M
Net Income	-5.47M	1.96M	-14.81M	-7.08M	57.39M	-24.48M
Balance Sheet
Total Assets	534.58M	532.61M	517.77M	445.14M	541.23M	544.02M
Cash, Cash Equivalents and Short-Term Investments	12.01M	20.18M	31.40M	37.67M	24.23M	12.43M
Total Debt	0.00	210.29M	191.03M	142.98M	120.63M	364.32M
Total Liabilities	242.00M	235.04M	223.16M	173.07M	332.61M	434.25M
Stockholders Equity	191.46M	194.71M	191.48M	207.25M	158.14M	98.91M
Cash Flow
Free Cash Flow	-51.40M	-34.98M	-97.22M	-110.07M	-73.17M	-10.25M
Operating Cash Flow	-25.88M	-5.84M	-51.25M	-55.26M	-53.61M	-4.06M
Investing Cash Flow	-17.84M	-21.54M	-46.95M	50.00M	188.94M	-7.82M
Financing Cash Flow	35.15M	16.10M	84.93M	-19.17M	-99.37M	7.47M

Stratus Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRS, the sentiment is Positive. The current price of 18.99 is below the 20-day moving average (MA) of 19.02, above the 50-day MA of 18.74, and below the 200-day MA of 20.67, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRS.

Stratus Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JOE	71 Outperform	$3.00B	38.70	10.96%	1.08%	1.25%	-4.31%
ILPT	67 Neutral	$356.51M	―	-15.86%	0.74%	0.55%	12.36%
Sector *	66 Neutral	£951.29M	13.97	2.04%	5.26%	11.04%	38.13%
MDV	64 Neutral	$148.85M	75.12	1.54%	7.95%	-4.13%	79.39%
STRS	62 Neutral	$166.46M	84.82	-2.81%	―	-13.84%	-28.27%
EQC	56 Neutral	$169.73M	4.10	2.10%	―	-4.47%	-44.64%
SRG	54 Neutral	$172.35M	―	-33.95%	―	-36.26%	-38.17%

Stratus Properties Corporate Events

Stratus Properties Partners for Holden Hills Phase 2

On June 13, 2025, Stratus Properties Inc. entered into a partnership agreement for the development of Holden Hills Phase 2, a 570-acre mixed-use project in the Barton Creek community. The agreement involves Stratus’ subsidiaries and an external investor, with each holding a 50% equity interest. The project is designed to include commercial and residential spaces with outdoor amenities, and the partners have made significant initial capital contributions. Additionally, Stratus’ Board has increased its share repurchase program to $25 million, with $23 million available for future purchases, reflecting a strategic move to enhance shareholder value.

Stratus Properties Completes Sale of West Killeen Market

On May 27, 2025, Stratus Properties Inc. announced the completion of the sale of its West Killeen Market retail property for $13.3 million, generating pre-tax net cash proceeds of approximately $7.8 million. This sale, which was at a premium to the property’s previously calculated gross value, allowed Stratus to repay a project loan and strengthen its financial position, further enhancing shareholder value. The transaction reflects Stratus’ strategic focus on identifying and realizing value in its Texas markets through disciplined development and asset management.

Stratus Properties Elects Directors at Annual Meeting

On May 13, 2025, Stratus Properties held its annual stockholders meeting in Austin, Texas, where key decisions were made. Stockholders elected William H. Armstrong III and Kate B. Henriksen as Class III directors for three-year terms, approved executive compensation, decided on annual advisory votes for executive compensation, and ratified CohnReznick LLP as the independent accounting firm for 2025. These decisions reflect ongoing governance and operational strategies impacting Stratus’ future direction.