Stratus Properties (STRS) AI Stock Analysis

• Market Cap: $227.85M
• Dividend Yield: N/A
• Average Volume (3M): 5.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -33.73%
• EPS Growth: -602.19%
• Country: US
• Employees: 34
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): -0.62
• Shares Outstanding: 7,994,746
• 10 Day Avg. Volume: 6,400
• 30 Day Avg. Volume: 5,831
• PEG Ratio: -0.76
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 3.09
• P/FCF Ratio: -4.78
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 12.56
• Enterprise Value/Gross Profit: -180.61
• Enterprise Value/Ebitda: -32.61
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $31.00 ▲(27.15% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by weak financial performance—TTM losses and ongoing operating/free cash flow deficits—despite a debt-free balance sheet. Technicals are a notable positive with a strong uptrend and positive momentum, and corporate events add support via liquidity-boosting asset monetizations and strategic alternatives review. Valuation remains constrained by negative earnings and no provided dividend yield.

Positive Factors

Debt-free balance sheet

A debt-free balance sheet with sizable equity materially lowers solvency risk and gives management flexibility to pursue restructuring, strategic alternatives, or weather cyclical downturns without immediate refinancing pressure, supporting multi-month stability and optionality.

Proven asset monetization ability

Repeated, sizable retail asset dispositions that generated meaningful cash demonstrate the firm can harvest value from stabilized projects, materially improving liquidity and funding near-term obligations or shareholder returns without diluting equity.

Board-led strategic alternatives review

A formal, board-led strategic review backed by advisers signals governance focus on unlocking shareholder value; potential structural outcomes (sale, liquidation, buybacks) could crystallize asset value and resolve prolonged operating underperformance.

Negative Factors

Persistent negative cash generation

Sustained negative operating and free cash flow forces reliance on non-operational sources (asset sales, financing, liquidity), undermining organic reinvestment capacity, making operating model unsustainable unless margins or cash conversion materially improve.

Weak and volatile profitability

Negative gross profit and recurring operating losses reflect structural margin weakness and unstable earnings quality; unpredictable profitability impedes consistent reinvestment, depresses returns on capital, and raises execution risk over months.

Dependence on asset dispositions to fund operations

A business model increasingly reliant on harvesting stabilized assets to generate liquidity reduces future development pipeline, limits recurring revenue growth, and is not a sustainable operating strategy absent improvement in core cash flow generation.

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 generates revenue through several key streams. The primary source of income comes from the sale of developed residential and commercial properties, which can include single-family homes, multi-family units, and retail spaces. Additionally, the company earns revenue from property management services, where it manages real estate assets on behalf of investors or third-party owners. Lease income from commercial properties is another significant revenue stream. The company may also engage in joint ventures or partnerships with other developers and investors, which can provide additional funding and resources for projects, thereby enhancing its revenue potential. Overall, Stratus Properties' diversified approach to real estate development and management helps stabilize its earnings and capitalize on market opportunities.

Stratus Properties Financial Statement Overview

Summary

TTM results show a sharp deterioration in profitability (negative gross profit, large operating loss, sizable net loss) and persistent cash burn (negative operating cash flow and consistently negative free cash flow across periods). The key offset is a debt-free TTM balance sheet with a sizable equity base, which reduces solvency risk but does not fix weak operating economics.

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp deterioration: revenue rose materially versus the prior annual period, but profitability turned deeply negative (negative gross profit and large operating loss), resulting in a sizable net loss and very weak margins. While 2024 was modestly profitable at the net income line, results have been volatile across years, suggesting earnings quality and predictability remain weak.

Balance Sheet

The latest TTM (Trailing-Twelve-Months) balance sheet indicates no debt and a sizable equity base relative to total assets, which is a meaningful financial strength and lowers solvency risk. That said, returns on shareholder capital are negative in TTM (Trailing-Twelve-Months), and leverage was meaningful in recent annual periods, highlighting that the capital structure and returns have not been consistently strong over time.

Cash Flow

Cash generation is the biggest concern: operating cash flow is materially negative in TTM (Trailing-Twelve-Months) and was also negative in each of the annual periods shown, with free cash flow consistently negative as well. Even though TTM (Trailing-Twelve-Months) free cash flow improved versus the prior year, the business is still consuming cash, increasing reliance on asset sales, financing, or balance sheet liquidity to fund operations.

Breakdown	TTM	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Dec 2020
Income Statement
Total Revenue	31.91M	54.18M	17.27M	37.50M	28.24M	44.33M
Gross Profit	-2.22M	11.17M	-1.78M	5.71M	9.47M	14.50M
EBITDA	-12.30M	1.78M	-12.69M	-3.07M	-10.52M	7.01M
Net Income	-8.10M	1.96M	-14.81M	90.43M	57.39M	-22.79M
Balance Sheet
Total Assets	572.56M	532.61M	517.77M	445.14M	541.23M	544.02M
Cash, Cash Equivalents and Short-Term Investments	55.04M	20.18M	31.40M	37.67M	24.23M	9.31M
Total Debt	219.12M	210.29M	191.03M	137.61M	120.63M	150.89M
Total Liabilities	240.48M	235.04M	223.16M	173.07M	332.61M	434.25M
Stockholders Equity	185.79M	194.71M	191.48M	207.25M	158.14M	98.91M
Cash Flow
Free Cash Flow	-47.03M	-34.98M	-97.22M	-110.07M	-73.17M	-10.25M
Operating Cash Flow	-32.78M	-5.84M	-51.25M	-55.26M	-53.61M	-4.06M
Investing Cash Flow	1.04M	-21.54M	-46.95M	50.00M	188.94M	-7.82M
Financing Cash Flow	61.73M	16.10M	84.93M	-19.17M	-99.37M	7.47M

Stratus Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 24.38 is below the 20-day moving average (MA) of 29.09, below the 50-day MA of 26.59, and above the 200-day MA of 21.02, indicating a bullish trend. The MACD of 0.81 indicates Positive momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 21.16 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	78 Outperform	$4.08B	39.25	14.16%	0.98%	26.89%	53.54%
ALEX	69 Neutral	$1.51B	20.63	7.32%	4.97%	-3.94%	64.29%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
VRE	63 Neutral	$1.56B	25.81	5.33%	2.17%	3.37%	―
STRS	58 Neutral	$227.85M	-28.50	-4.24%	―	-33.73%	-602.19%
AAT	57 Neutral	$1.15B	20.45	5.29%	7.31%	5.95%	5.06%
FSP	40 Neutral	$79.01M	-1.71	-7.21%	4.71%	-14.68%	-13.53%

Stratus Properties Corporate Events

Stratus Properties extends credit facility and sells Kingwood asset

On January 30, 2026, Stratus Properties Inc. and several wholly owned subsidiaries amended their secured revolving credit facility with Comerica Bank, extending the maturity of the loan to March 27, 2028; at that date the facility had a $27.4 million borrowing base with $17.4 million available, net of outstanding letters of credit, bolstering the company’s liquidity as it continues to recycle capital from completed projects. Also on January 30, 2026, Stratus completed the previously announced sale of its 60%-owned Kingwood Place mixed-use, H-E-B‑anchored retail development in the Houston-area community of Kingwood for $60.8 million in cash, generating approximately $27.1 million in pre-tax net cash proceeds, including a $16.2 million distribution to Stratus and an expected pre-tax gain of about $13.7 million net of noncontrolling interests; the deal, announced via a February 5, 2026 press release and completed at a 9.3% premium to the project’s pre-tax net asset value, marks Stratus’ third recent disposition of a stabilized retail property and further strengthens its balance sheet as the board continues an ongoing review of strategic alternatives initiated in December 2025 to maximize shareholder value.

The most recent analyst rating on (STRS) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Stratus Properties stock, see the STRS Stock Forecast page.

Stratus Properties Initiates Strategic Alternatives Review for Value

On December 22, 2025, Stratus Properties Inc. announced that its board has launched a review of strategic alternatives aimed at maximizing shareholder value, with options ranging from a sale of the company and a potential dissolution and liquidation to additional share repurchases and other strategic or financial transactions, supported by independent financial and legal advisers. In a parallel move to monetize assets, a Stratus subsidiary agreed on December 18, 2025, to sell its majority-owned, H-E-B-anchored Kingwood Place mixed-use development in the Houston area for $60.8 million in cash, a price representing a premium to the project’s previously disclosed net asset value and expected to yield about $26 million in pre-tax net cash proceeds for Stratus if the deal closes in the first quarter of 2026, underscoring the company’s ongoing pivot from development and stabilization toward harvesting value from mature properties following recent disposals of other retail projects.

The most recent analyst rating on (STRS) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Stratus Properties stock, see the STRS Stock Forecast page.

Stratus Properties Sells Lantana Place Retail Component

On November 14, 2025, Stratus Properties Inc. completed the sale of the retail component of its Lantana Place project in Austin, Texas, for $57.5 million. The sale, which was part of Stratus’ strategy to unlock value from its portfolio, generated pre-tax net cash proceeds of approximately $26.9 million. Following this transaction, Stratus retains the property planned for a 210-unit multi-family development called The Saint Julia and remaining entitlements for commercial use in the Lantana community. This sale reflects Stratus’ ability to execute its strategy effectively, enhancing its financial position and demonstrating its commitment to maximizing shareholder value.

The most recent analyst rating on (STRS) stock is a Hold with a $18.50 price target. To see the full list of analyst forecasts on Stratus Properties stock, see the STRS Stock Forecast page.