Starwood Property (STWD) AI Stock Analysis

• Market Cap: $7.00B
• Dividend Yield: 9.21%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.80
• Revenue Growth: -15.62%
• EPS Growth: -31.74%
• Country: US
• Employees: 286
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Mortgage
• EPS (TTM): 0.45
• Shares Outstanding: 339,454,860
• 10 Day Avg. Volume: 1,946,352
• 30 Day Avg. Volume: 2,177,849
• PEG Ratio: -1.51
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.76
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 5.13
• Enterprise Value/Ebitda: 1.24
• 1Y Price Target: $21.25
• Price Target Upside: 7.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $22.50 ▲(14.16%Upside)

Starwood Property Trust shows strong financial performance with robust revenue growth and a solid balance sheet. The technical analysis indicates a bullish trend, though the stock may be overbought. The earnings call provided positive guidance, despite some challenges with non-performing loans and market uncertainties. The high dividend yield is a notable positive for investors.

Positive Factors

Acquisition and Growth

The acquisition of a $2.2B net lease portfolio and 28-person platform adds another leg of growth to STWD's diversified model.

Dividend Yield

Shares offer an attractive 9% dividend yield, supporting investor interest.

Negative Factors

Earnings Outlook

Lower revenue growth and a realized loss on a Texas office loan have led to a reduced earnings outlook for 2025 and 2026.

Price Objective

The price objective was lowered to reflect the reduced 2025 earnings outlook and modest industry multiple contraction.

Starwood Property Business Overview & Revenue Model

Company Description

Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States, Europe, and Australia. It operates through four segments: Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing segments. The Commercial and Residential Lending segment originates, acquires, finances, and manages commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), and residential mortgage-backed securities, as well as other real estate and real estate-related debt investments, including distressed or non-performing loans. The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments. The Property segment engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties, such as multifamily properties and commercial properties subject to net leases, that are held for investment. The Investing and Servicing segment manages and works out problem assets; acquires and manages unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions; originates conduit loans for the primary purpose of selling these loans into securitization transactions; and acquires commercial real estate assets that include properties acquired from CMBS trusts. The company qualifies as a REIT for federal income tax purposes and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. Starwood Property Trust, Inc. was incorporated in 2009 and is headquartered in Greenwich, Connecticut.

How the Company Makes Money

Starwood Property Trust makes money through several key revenue streams primarily centered around real estate finance. The company earns income by providing loans secured by commercial and residential properties, collecting interest income on these loans. Additionally, the company generates revenue through its property ownership segment, which involves rental income from owned real estate properties. In its infrastructure lending segment, Starwood Property Trust provides financing for infrastructure projects, earning interest and fees. The company also engages in investing and servicing activities, which involve purchasing distressed or non-performing loans at a discount and working to recover value through restructuring or foreclosure, generating gains from these activities. Partnerships with borrowers, real estate developers, and other financial institutions enhance its ability to source and manage investment opportunities, contributing to its earnings.

Starwood Property Financial Statement Overview

Summary

Starwood Property demonstrates strong revenue growth and profitability with an excellent gross profit margin. The balance sheet is robust with zero total debt, indicating low leverage risk. Cash flow is healthy, though fluctuations in financing activities require monitoring.

Income Statement

Starwood Property has shown a strong revenue growth trajectory, with a significant increase from $1.02 billion in 2023 to $1.95 billion in 2024. The gross profit margin is excellent at 100% for both years. Net profit margin improved from 33.38% in 2023 to 18.48% in 2024, indicating strong profitability. However, EBIT and EBITDA margins are also strong, signaling efficient operations. The revenue growth rate is impressive, contributing to a high score.

Balance Sheet

The company has a robust balance sheet with zero total debt in 2024, significantly improving the debt-to-equity ratio. The equity ratio has remained stable. Return on equity decreased slightly from 2023 to 2024, indicating a need for further efficiency improvements. Overall, the balance sheet reflects stability and low leverage risk.

Cash Flow

Starwood Property displays strong operating cash flow, with a significant increase in free cash flow from 2023 to 2024. The free cash flow to net income ratio suggests effective cash management. However, fluctuations in cash flow from financing activities require monitoring. The free cash flow growth rate is positive, contributing to a stable cash flow position.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.95B	1.02B	1.45B	885.14M	822.44M
Gross Profit	1.95B	777.18M	1.41B	773.48M	704.76M
EBITDA	1.80B	54.24M	1.55B	0.00	0.00
Net Income	359.93M	339.21M	871.48M	447.74M	331.69M
Balance Sheet
Total Assets	62.56B	69.50B	79.04B	83.85B	80.87B
Cash, Cash Equivalents and Short-Term Investments	911.09M	258.10M	18.66B	217.36M	563.22M
Total Debt	9.01B	8.87B	21.83B	17.02B	7.00B
Total Liabilities	55.36B	62.48B	71.84B	77.20B	76.01B
Stockholders Equity	6.44B	6.25B	6.46B	6.07B	4.49B
Cash Flow
Free Cash Flow	646.59M	503.51M	188.52M	-1.02B	1.02B
Operating Cash Flow	646.59M	528.60M	213.74M	-989.98M	1.05B
Investing Cash Flow	2.08B	855.07M	-2.95B	-4.28B	-911.80M
Financing Cash Flow	-2.50B	-1.45B	2.80B	4.87B	13.28M

Starwood Property Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.71
• 50DMA: Negative
• 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 STWD, the sentiment is Neutral. The current price of 19.71 is below the 20-day moving average (MA) of 20.31, below the 50-day MA of 19.74, and above the 200-day MA of 18.82, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 41.25 is Neutral, neither overbought nor oversold. The STOCH value of 34.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STWD.

Starwood Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABR	71 Outperform	$2.13B	11.18	7.77%	10.61%	-15.99%	-36.34%
LADR	71 Outperform	$1.41B	13.48	6.80%	8.22%	-12.51%	7.76%
STWD	69 Neutral	$7.00B	21.69	4.90%	9.21%	-15.62%	-31.74%
RITM	68 Neutral	$6.31B	9.94	9.36%	8.40%	26.78%	-19.34%
AGNC	66 Neutral	$9.46B	23.70	5.05%	15.53%	-2.35%	-56.25%
BXMT	63 Neutral	$3.38B	―	-2.06%	9.53%	-20.46%	-1436.71%
Sector *	59 Neutral	C$1.25B	-1.04	-8.19%	4.97%	10.83%	-22.67%

Starwood Property Corporate Events

Starwood Property Announces Major Acquisition Agreement

On July 16, 2025, Starwood Property Trust announced its agreement to acquire Fundamental Income Properties for approximately $2.2 billion, with the transaction expected to close by July 23, 2025. This acquisition is set to enhance Starwood’s position in the net lease market, providing access to a diversified portfolio of 467 properties across 44 states and 56 industries. The move is anticipated to be accretive to distributable earnings and solidifies Starwood’s status as a leading diversified REIT. However, the completion of the acquisition is subject to customary closing conditions, and failure to close could negatively impact the company’s stock price and business operations.

The most recent analyst rating on (STWD) stock is a Buy with a $20.50 price target. To see the full list of analyst forecasts on Starwood Property stock, see the STWD Stock Forecast page.