Starwood Property (STWD) AI Stock Analysis

• Market Cap: $6.61B
• Dividend Yield: 10.75%
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.62
• Revenue Growth: -13.19%
• EPS Growth: -11.26%
• Country: US
• Employees: 286
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.40
• Shares Outstanding: 370,331,330
• 10 Day Avg. Volume: 3,486,925
• 30 Day Avg. Volume: 3,138,554
• PEG Ratio: 3.00
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 3.11
• P/FCF Ratio: 9.80
• Enterprise Value/Market Cap: 4.33
• Enterprise Value/Revenue: 32.94
• Enterprise Value/Gross Profit: 58.20
• Enterprise Value/Ebitda: 67.56
• 1Y Price Target: $21.00
• Price Target Upside: 17.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.72
• Revenue Forecast (FY): $1.85B

• Rating: 62 Neutral
• Price Target: $19.50 ▲(9.18% Upside)

Starwood Property Trust's overall score reflects strong cash flow and attractive dividend yield, but is tempered by high leverage and recent earnings challenges. The technical indicators suggest a bearish trend, and while the company is actively investing, credit quality issues and earnings dilution pose risks.

Positive Factors

Strong Cash Flow

Robust cash generation relative to earnings indicates strong operational efficiency, providing a buffer against financial volatility.

Diversified Investment Strategy

Diversification across sectors like net lease, commercial, and infrastructure lending reduces risk and supports stable long-term growth.

Infrastructure Lending Growth

Growth in infrastructure lending enhances revenue streams and capitalizes on long-term infrastructure development trends.

Negative Factors

High Leverage

High leverage could strain financial stability, especially if interest rates rise, limiting flexibility and increasing risk.

Credit Quality Challenges

Deteriorating credit quality could lead to foreclosures, impacting asset quality and future earnings potential.

Earnings Below Dividend

Earnings below dividend levels indicate financial pressure, potentially affecting dividend sustainability and investor confidence.

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 generates revenue primarily through interest income from its mortgage loans and real estate-related investments. The company originates, acquires, and manages a variety of loans, including first mortgages, subordinate mortgages, and mezzanine loans, which typically yield higher returns compared to traditional fixed-income investments. Additionally, STWD earns revenue from property management fees and other ancillary services related to its equity investments in properties. Key partnerships with institutional investors and real estate developers enhance its ability to source attractive investment opportunities, while its focus on high-quality assets and strategic locations contributes to stable cash flows. The company's diversified investment strategy and active asset management approach help mitigate risks and optimize returns, ensuring a steady income stream for its shareholders.

Starwood Property Financial Statement Overview

Summary

Starwood Property demonstrates solid operational efficiency with strong margins, but faces challenges in revenue growth and high leverage. The cash flow position is strong, providing some buffer against financial volatility. Strategic measures may be needed to enhance revenue generation and manage debt levels effectively.

Income Statement

The income statement shows moderate profitability with a gross profit margin of 66.5% and a net profit margin of 16.5% in the TTM period. Revenue has decreased slightly from the previous year by 1.29%, indicating a potential concern in top-line growth. The EBIT and EBITDA margins are strong at 46.6% and 62.5%, respectively, reflecting efficient operations. However, recent net income has declined compared to the previous period.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.40, which suggests significant leverage and potential risk if interest rates rise. The equity ratio is low at 10.3%, indicating that the company relies heavily on debt financing. Return on equity (ROE) is 4.96%, showing a moderate return on shareholders' investments. The company's financial stability could be challenged under adverse conditions.

Cash Flow

Cash flow analysis displays a strong operating cash flow to net income ratio of 2.61, suggesting robust cash generation relative to reported earnings. The free cash flow has grown by 29.53% over the last year, highlighting improved cash management. The free cash flow to net income ratio is 2.52, indicating effective conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	868.72M	400.75M	1.02B	1.45B	717.25M	822.44M
Gross Profit	491.61M	352.51M	777.18M	1.41B	604.40M	822.44M
EBITDA	423.51M	0.00	54.24M	1.55B	0.00	0.00
Net Income	366.27M	359.93M	339.21M	871.48M	447.74M	331.69M
Balance Sheet
Total Assets	62.43B	62.56B	69.50B	79.04B	83.85B	80.87B
Cash, Cash Equivalents and Short-Term Investments	390.61M	471.64M	258.10M	374.45M	361.34M	563.22M
Total Debt	11.14B	9.01B	8.87B	9.71B	7.48B	7.00B
Total Liabilities	54.86B	55.36B	62.48B	71.84B	77.20B	76.01B
Stockholders Equity	6.86B	6.44B	6.25B	6.46B	6.07B	4.49B
Cash Flow
Free Cash Flow	777.68M	618.65M	503.51M	188.52M	-1.02B	1.02B
Operating Cash Flow	784.68M	646.59M	528.60M	213.74M	-989.98M	1.05B
Investing Cash Flow	-2.74B	2.08B	855.07M	-2.95B	-4.28B	-911.80M
Financing Cash Flow	1.99B	-2.49B	-1.45B	2.80B	4.87B	13.28M

Starwood Property Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 17.86 is below the 20-day moving average (MA) of 18.06, below the 50-day MA of 18.70, and below the 200-day MA of 18.87, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 41.73 is Neutral, neither overbought nor oversold. The STOCH value of 25.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STWD.

Starwood Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGNC	66 Neutral	$11.03B	15.54	7.94%	14.20%	729.50%	-53.65%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BXMT	63 Neutral	$3.16B	30.27	2.88%	9.97%	-18.22%	―
STWD	62 Neutral	$6.61B	17.02	5.34%	10.75%	-13.19%	-11.26%
ABR	60 Neutral	$1.67B	10.89	6.43%	15.61%	-18.13%	-40.87%
ARR	58 Neutral	$1.86B	358.75	3.75%	17.34%	-27.55%	-97.87%
RITM	57 Neutral	$6.01B	7.48	10.78%	9.07%	-1.07%	47.50%

Starwood Property Corporate Events

Starwood Property Trust Reports Steady Q3 2025 Performance

Starwood Property Trust, Inc. is a Maryland-based real estate investment trust (REIT) that focuses on originating, acquiring, financing, and managing mortgage loans and other real estate investments across the United States, Europe, and Australia. The company operates in four main segments: commercial and residential lending, infrastructure lending, real estate property, and real estate investing and servicing.

Starwood Property Closes $550M Senior Notes Offering

On October 14, 2025, Starwood Property Trust, Inc. successfully closed a private offering of $550 million in unsecured senior notes due 2031, which were priced on September 29, 2025. These notes, issued under an indenture with The Bank of New York Mellon as trustee, are intended to finance or refinance eligible green and social projects, with any remaining proceeds used for general corporate purposes, including debt repayment. The issuance positions Starwood Property Trust to potentially enhance its financial flexibility and support its sustainability initiatives, although the notes are subject to certain transfer restrictions and ranking conditions as outlined in the indenture.

The most recent analyst rating on (STWD) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Starwood Property stock, see the STWD Stock Forecast page.

Starwood Property Closes $500M Senior Notes Offering

On October 6, 2025, Starwood Property Trust closed a private offering of $500 million in unsecured senior notes due 2028, priced at 5.250% interest. The proceeds are intended for financing or refinancing eligible green and social projects, with any remaining funds used for general corporate purposes, including debt repayment. This strategic move highlights the company’s commitment to sustainable investments and strengthens its financial positioning in the market.

The most recent analyst rating on (STWD) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Starwood Property stock, see the STWD Stock Forecast page.

Starwood Property Announces Upsized $550M Notes Offering

On September 29, 2025, Starwood Property Trust announced the pricing of its $550 million private offering of 5.750% unsecured senior notes due 2031, upsized from the initially planned $500 million. The proceeds will be allocated to finance or refinance eligible green and social projects, with any remaining funds used for general corporate purposes. The offering is aimed at qualified institutional buyers and non-U.S. persons, and the notes will not be registered under U.S. securities laws.

The most recent analyst rating on (STWD) stock is a Hold with a $21.50 price target. To see the full list of analyst forecasts on Starwood Property stock, see the STWD Stock Forecast page.

Starwood Property Announces $500M Green Notes Offering

On September 29, 2025, Starwood Property Trust announced a private offering of $500 million in unsecured senior notes due 2031. The proceeds are intended to finance or refinance eligible green and social projects, with any remaining funds used for general corporate purposes, including debt repayment. This move underscores the company’s commitment to sustainable investments and could enhance its market position by attracting institutional investors interested in green finance.

The most recent analyst rating on (STWD) stock is a Hold with a $21.50 price target. To see the full list of analyst forecasts on Starwood Property stock, see the STWD Stock Forecast page.

Starwood Property Announces $500M Senior Notes Offering

On September 22, 2025, Starwood Property Trust announced the pricing of its $500 million private offering of 5.250% unsecured senior notes due in 2028. The company plans to use the net proceeds to finance or refinance eligible green and social projects, with any remaining funds used for general corporate purposes, including debt repayment. This move is expected to enhance the company’s focus on sustainable investments and strengthen its financial position.

The most recent analyst rating on (STWD) stock is a Hold with a $21.50 price target. To see the full list of analyst forecasts on Starwood Property stock, see the STWD Stock Forecast page.

Starwood Property Announces $500M Senior Notes Offering

On September 22, 2025, Starwood Property Trust announced a private offering of $500 million in unsecured senior notes due 2028. The proceeds will be used to finance or refinance eligible green and social projects, and for general corporate purposes, including debt repayment. This move aligns with the company’s strategy to support sustainable projects and manage its financial obligations effectively.

The most recent analyst rating on (STWD) stock is a Hold with a $21.50 price target. To see the full list of analyst forecasts on Starwood Property stock, see the STWD Stock Forecast page.

Starwood Property Trust’s Strong Q2 2025 Earnings Call

Starwood Property Trust’s recent earnings call reflects a strong performance, particularly in investment and portfolio growth, with a focus on infrastructure and net lease real estate. Despite these positive developments, the company faces challenges related to foreclosures and nonaccrual loans, especially in the life science and office sectors. Starwood is well-positioned for future growth with a robust balance sheet and diversification but must carefully navigate ongoing credit risks and market uncertainties.