📊 STRS Key Takeaways
Is Stratus Properties Inc. (STRS) a Good Investment?
Despite headline revenue growth of 182% and reported net income of $6.6M, STRS exhibits severe earnings quality concerns: operating income ($15.4M) exceeds total revenue ($3.8M), implying significant non-operating or one-time gains. Most critically, operating cash flow is negative $15.6M, indicating reported earnings are not converting to real cash generation and likely driven by non-cash accounting items rather than sustainable business operations.
Stratus Properties Inc. Key Strengths (STRS)
- Strong balance sheet with $211.7M stockholders equity and zero long-term debt
- Adequate cash reserves of $73.5M providing liquidity cushion
- Substantial asset base of $532.5M for a real estate developer
STRS Stock Risks: Stratus Properties Inc. Investment Risks
- Operating income exceeds revenue (406% operating margin is mathematically impossible for normal operations), suggesting reliance on non-recurring property sale gains or accounting adjustments
- Negative operating cash flow of -$15.6M indicates poor cash generation despite reported profitability - critical disconnect between earnings and cash reality
- Low interest coverage ratio of 1.8x limits debt capacity and financial flexibility if operational challenges persist
- Significant data gaps (missing current ratio, quick ratio, gross margin) prevent complete liquidity and operational assessment
Key Metrics to Watch
- Operating cash flow trend in subsequent quarters to confirm if negative cash generation persists
- Composition of operating income (percentage attributable to non-recurring property sale gains vs. operational earnings)
- Cash balance depletion rate given current negative free cash flow of -$15.6M against $73.5M reserves
Stratus Properties Inc. (STRS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
STRS Profit Margin, ROE & Profitability Analysis
STRS vs Real Estate Sector: How Stratus Properties Inc. Compares
How Stratus Properties Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Stratus Properties Inc. Stock Overvalued? STRS Valuation Analysis 2026
Based on fundamental analysis, Stratus Properties Inc. appears fundamentally strong relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Stratus Properties Inc. Balance Sheet: STRS Debt, Cash & Liquidity
STRS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Stratus Properties Inc.'s revenue has declined by 59% over the 5-year period, indicating business contraction. The most recent EPS of $0.24 reflects profitable operations.
STRS Revenue Growth, EPS Growth & YoY Performance
STRS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $25.0K | -$3.8M | $-0.36 |
| Q3 2025 | $45.0K | -$495.0K | $-0.05 |
| Q2 2025 | $3.6M | $919.0K | $0.03 |
| Q1 2025 | $25.0K | $3.7M | $-0.36 |
| Q3 2024 | N/A | -$495.0K | $-0.05 |
| Q2 2024 | $58.0K | $919.0K | $-0.21 |
| Q1 2024 | $2.5M | $3.7M | $0.56 |
| Q3 2023 | N/A | -$2.6M | $-0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Stratus Properties Inc. Dividends, Buybacks & Capital Allocation
STRS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Stratus Properties Inc. (CIK: 0000885508)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STRS
What is the AI rating for STRS?
Stratus Properties Inc. (STRS) has an AI grade of C with 52% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STRS's key strengths?
Claude: Strong balance sheet with $211.7M stockholders equity and zero long-term debt. Adequate cash reserves of $73.5M providing liquidity cushion.
What are the risks of investing in STRS?
Claude: Operating income exceeds revenue (406% operating margin is mathematically impossible for normal operations), suggesting reliance on non-recurring property sale gains or accounting adjustments. Negative operating cash flow of -$15.6M indicates poor cash generation despite reported profitability - critical disconnect between earnings and cash reality.
What is STRS's revenue and growth?
Stratus Properties Inc. reported revenue of $3.8M.
Does STRS pay dividends?
Stratus Properties Inc. does not currently pay dividends.
Where can I find STRS SEC filings?
Official SEC filings for Stratus Properties Inc. (CIK: 0000885508) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STRS's EPS?
Stratus Properties Inc. has a diluted EPS of $0.82.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is STRS's fundamental grade?
Based on our AI fundamental analysis in May 2026, Stratus Properties Inc. has a C grade with 52% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is STRS stock overvalued or undervalued?
Valuation metrics for STRS: ROE of 3.1% (sector avg: 8%), net margin of 174.8% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is STRS's AI grade for 2026?
Our dual AI analysis gives Stratus Properties Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is STRS's free cash flow?
Stratus Properties Inc.'s operating cash flow is $-15.6M, with capital expenditures of N/A. FCF margin is -411.4%.
How does STRS compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 174.8% (avg: 20%), ROE 3.1% (avg: 8%), current ratio N/A (avg: 1.5).