📊 STRS Key Takeaways
Is Stratus Properties Inc. (STRS) a Good Investment?
Despite impressive revenue growth (+182% YoY) and reported net income of $12M, Stratus Properties exhibits a critical disconnect between accounting earnings and cash generation, with negative operating cash flow of -$29.9M offsetting 100% of revenue. The company's low return metrics (5.9% ROE, 2.1% ROA) despite 40% net margins and the unsustainable burn rate of cash relative to revenue size signal fundamental earnings quality concerns that outweigh topline growth momentum.
Why Buy Stratus Properties Inc. Stock? STRS Key Strengths
- Strong revenue acceleration with +182.3% YoY growth indicating market demand
- Solid balance sheet with $74.3M cash and zero long-term debt providing financial flexibility
- High operating margin of 36.1% demonstrates pricing power and operational efficiency
STRS Stock Risks: Stratus Properties Inc. Investment Risks
- Severe cash flow deterioration: -$29.9M operating cash flow equals 100% of revenue, indicating unsustainable cash burn despite positive reported earnings
- Critical earnings quality concern: massive disconnect between $12M net income and negative free cash flow suggests non-cash gains, accounting recognition issues, or asset revaluations
- Persistently low capital returns (5.9% ROE, 2.1% ROA) despite strong margins indicate inefficient asset utilization typical of distressed real estate operations
Key Metrics to Watch
- Operating cash flow conversion and cash runway sustainability given current burn rate
- Accounting for construction-in-progress assets and any pending impairment charges
- Year-over-year cash position changes and liquidity adequacy relative to project completion timelines
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $58.0K | -$5.3M | $-0.64 |
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 rating of SELL with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STRS's key strengths?
Claude: Strong revenue acceleration with +182.3% YoY growth indicating market demand. Solid balance sheet with $74.3M cash and zero long-term debt providing financial flexibility.
What are the risks of investing in STRS?
Claude: Severe cash flow deterioration: -$29.9M operating cash flow equals 100% of revenue, indicating unsustainable cash burn despite positive reported earnings. Critical earnings quality concern: massive disconnect between $12M net income and negative free cash flow suggests non-cash gains, accounting recognition issues, or asset revaluations.
What is STRS's revenue and growth?
Stratus Properties Inc. reported revenue of $29.9M.
Does STRS pay dividends?
Stratus Properties Inc. pays dividends, with $0.2M distributed to shareholders in the trailing twelve months.
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 $1.47.
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 rating reflects both perspectives for balanced insights.
Is STRS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Stratus Properties Inc. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is STRS stock overvalued or undervalued?
Valuation metrics for STRS: ROE of 5.9% (sector avg: 8%), net margin of 40.1% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy STRS stock in 2026?
Our dual AI analysis gives Stratus Properties Inc. a combined SELL rating 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 $-29.9M, with capital expenditures of N/A. FCF margin is -99.9%.
How does STRS compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 40.1% (avg: 20%), ROE 5.9% (avg: 8%), current ratio N/A (avg: 1.5).