Stratus Properties (STRS) AI Stock Analysis

• Market Cap: $173.57M
• Dividend Yield: N/A
• Average Volume (3M): 5.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• 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: 2.76
• Enterprise Value/Revenue: 6.51
• Enterprise Value/Gross Profit: -54.84
• Enterprise Value/Ebitda: -13.48
• 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: 54 Neutral
• Price Target: $21.50 ▲(2.23% Upside)

Stratus Properties' overall score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. However, positive technical indicators and recent corporate events, such as asset sales and loan amendments, provide some support to the stock's outlook.

Positive Factors

Strategic Market Focus

Stratus Properties' focus on real estate in high-demand areas like Texas positions it well for long-term growth, leveraging regional economic strengths.

Revenue Streams

Diversified revenue streams from sales, leasing, and management fees provide a stable financial foundation, reducing dependency on any single market segment.

Partnerships and Joint Ventures

Engaging in partnerships and joint ventures enables Stratus Properties to undertake larger projects, enhancing growth potential and spreading financial risk.

Negative Factors

Negative Cash Flow

Persistent negative cash flow suggests ongoing liquidity challenges, which can hinder the company's ability to invest in growth and manage debt effectively.

High Debt Levels

High debt levels increase financial risk, potentially limiting strategic flexibility and increasing vulnerability to interest rate changes.

Inconsistent Profitability

Inconsistent profitability and negative margins indicate challenges in cost management and revenue generation, affecting long-term financial health.

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

Stratus Properties faces financial challenges with inconsistent profitability and negative margins. The balance sheet shows moderate leverage but struggles with generating positive returns on equity. Cash flow issues are evident, indicating liquidity constraints.

Income Statement

Stratus Properties shows a mixed income statement performance. The TTM data indicates a slight revenue growth of 9.52%, but profitability metrics are concerning with negative net and EBIT margins. Historical data reveals fluctuating revenue growth and inconsistent profitability, with occasional positive net income. The company struggles with maintaining stable gross and net profit margins, indicating challenges in cost management and revenue generation.

Balance Sheet

The balance sheet reflects moderate financial leverage with a debt-to-equity ratio of 1.12 in the TTM period, slightly higher than previous years. The equity ratio is relatively stable, but the return on equity is negative, indicating inefficiencies in generating returns from equity. The company has managed to maintain a reasonable equity base, but high debt levels pose potential risks.

Cash Flow

Cash flow analysis reveals significant challenges. The TTM period shows negative operating and free cash flows, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating cash flow issues in covering net income. Historical data shows a pattern of negative free cash flow, suggesting ongoing liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.76M	54.18M	17.27M	37.50M	28.24M	44.33M
Gross Profit	-8.75M	11.17M	-1.78M	5.71M	9.47M	14.50M
EBITDA	-35.61M	1.78M	-12.69M	-3.07M	-10.52M	7.01M
Net Income	-26.16M	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	0.00	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	-124.20M	-34.98M	-97.22M	-110.07M	-73.17M	-10.25M
Operating Cash Flow	-93.88M	-5.84M	-51.25M	-55.26M	-53.61M	-4.06M
Investing Cash Flow	5.56M	-21.54M	-46.95M	50.00M	188.94M	-7.82M
Financing Cash Flow	128.17M	16.10M	84.93M	-19.17M	-99.37M	7.47M

Stratus Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 21.03 is above the 20-day moving average (MA) of 20.35, above the 50-day MA of 20.02, and above the 200-day MA of 18.80, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 50.77 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	$3.48B	33.45	14.16%	0.96%	26.89%	53.54%
ALEX	73 Outperform	$1.11B	15.12	7.32%	5.91%	-3.94%	64.29%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
VRE	62 Neutral	$1.37B	22.65	5.33%	2.24%	3.37%	―
AAT	59 Neutral	$1.15B	18.44	5.29%	7.26%	5.95%	5.06%
STRS	54 Neutral	$173.57M	-21.52	-4.24%	―	-33.73%	-602.19%
FSP	40 Neutral	$96.58M	―	-7.21%	4.30%	-14.68%	-13.53%

Stratus Properties Corporate Events

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.

Stratus Properties Sells Lantana Place Retail Component

On October 17, 2025, Stratus Properties Inc., through its subsidiary Lantana Place, L.L.C., entered into a binding agreement to sell the retail component of its Lantana Place development in Austin, Texas, to Scripps CMH LLC and Lantana SRB LLC for approximately $57.4 million. The sale is expected to close in the fourth quarter of 2025, and Stratus plans to use the proceeds to repay a project loan and retain development rights for future projects in the Lantana community.

Stratus Properties Amends Loan Agreement for Flexibility

On September 30, 2025, Stratus Properties Inc.’s subsidiary, The Saint June, L.P., amended its loan agreement with Texas Capital Bank to extend the maturity date to October 2, 2027, and adjust financial terms including a decrease in the interest rate margin and the introduction of a new debt yield financial covenant. These amendments allow for additional financial flexibility, including the distribution of up to $1.5 million to partners and the establishment of reserves for expenses, while maintaining a 50% repayment guaranty by Stratus.