📊 STWD Key Takeaways
Is Starwood Property Trust, Inc.. (STWD) a Good Investment?
Starwood Property Trust exhibits critical financial distress with an interest coverage ratio of 0.1x, indicating operating income cannot service debt obligations. Declining revenue and net income coupled with severe negative free cash flow of -$784.9M and minimal returns on assets (0.1%) and equity (0.8%) reflect a deteriorating business model unsustainable at current capital expenditure levels.
Starwood Property Trust, Inc.. Key Strengths (STWD)
- Positive operating cash flow of $93.6M demonstrates core business generates cash from operations
- Moderate debt-to-equity ratio of 0.35x indicates controlled leverage relative to asset base
- EPS growth of 4.5% YoY despite net income decline suggests active share repurchase program
STWD Stock Risks: Starwood Property Trust, Inc.. Investment Risks
- Critical interest coverage ratio of 0.1x - operating income fundamentally insufficient to cover debt service requirements
- Severe negative free cash flow of -$784.9M with $290.3M cash position unsustainable at current burn rate
- Revenue declining 5.3% and net income declining 7.1% YoY with abysmal returns on assets (0.1%) and equity (0.8%) indicating deteriorating operational efficiency
Key Metrics to Watch
- Interest coverage ratio - must reach minimum 1.5x for debt sustainability
- Free cash flow stabilization - current -$784.9M trajectory indicates structural insolvency risk
- Revenue trends and return on assets improvement - currently generating minimal economic value from $62.1B asset base
Starwood Property Trust, Inc.. (STWD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
STWD Profit Margin, ROE & Profitability Analysis
STWD vs Real Estate Sector: How Starwood Property Trust, Inc.. Compares
How Starwood Property Trust, Inc.. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Starwood Property Trust, Inc.. Stock Overvalued? STWD Valuation Analysis 2026
Based on fundamental analysis, Starwood Property Trust, Inc.. has mixed fundamental signals 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.
Starwood Property Trust, Inc.. Balance Sheet: STWD Debt, Cash & Liquidity
STWD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Starwood Property Trust, Inc..'s revenue has grown significantly by 71% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.07 reflects profitable operations.
STWD Revenue Growth, EPS Growth & YoY Performance
STWD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $418.2M | $51.9M | $0.13 |
| Q3 2025 | $479.5M | $72.6M | $0.19 |
| Q2 2025 | $444.3M | $77.9M | $0.24 |
| Q1 2025 | $418.2M | $112.3M | $0.33 |
| Q3 2024 | $479.5M | $47.4M | $0.15 |
| Q2 2024 | $489.8M | $77.9M | $0.24 |
| Q1 2024 | $490.4M | $52.0M | $0.16 |
| Q3 2023 | $390.5M | $47.4M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Starwood Property Trust, Inc.. Dividends, Buybacks & Capital Allocation
STWD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Starwood Property Trust, Inc.. (CIK: 0001465128)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STWD
What is the AI rating for STWD?
Starwood Property Trust, Inc.. (STWD) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STWD's key strengths?
Claude: Positive operating cash flow of $93.6M demonstrates core business generates cash from operations. Moderate debt-to-equity ratio of 0.35x indicates controlled leverage relative to asset base.
What are the risks of investing in STWD?
Claude: Critical interest coverage ratio of 0.1x - operating income fundamentally insufficient to cover debt service requirements. Severe negative free cash flow of -$784.9M with $290.3M cash position unsustainable at current burn rate.
What is STWD's revenue and growth?
Starwood Property Trust, Inc.. reported revenue of $512.5M.
Does STWD pay dividends?
Starwood Property Trust, Inc.. pays dividends, with $178.2M distributed to shareholders in the trailing twelve months.
Where can I find STWD SEC filings?
Official SEC filings for Starwood Property Trust, Inc.. (CIK: 0001465128) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STWD's EPS?
Starwood Property Trust, Inc.. has a diluted EPS of $0.13.
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 STWD's fundamental grade?
Based on our AI fundamental analysis in May 2026, Starwood Property Trust, Inc.. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is STWD stock overvalued or undervalued?
Valuation metrics for STWD: ROE of 0.8% (sector avg: 8%), net margin of 10.1% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is STWD's AI grade for 2026?
Our dual AI analysis gives Starwood Property Trust, Inc.. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is STWD's free cash flow?
Starwood Property Trust, Inc..'s operating cash flow is $93.6M, with capital expenditures of $878.5M. FCF margin is -153.2%.
How does STWD compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 10.1% (avg: 20%), ROE 0.8% (avg: 8%), current ratio N/A (avg: 1.5).