📊 STWD Key Takeaways
Is Starwood Property Trust, Inc.. (STWD) a Good Investment?
Starwood Property Trust faces deteriorating fundamentals with revenue declining 5.3% YoY and net income down 7.1% YoY, coupled with critically low interest coverage of 0.5x, indicating operating income cannot cover interest expenses. While the REIT maintains moderate leverage and strong operating margins, persistently weak returns on equity (6.1%) and assets (0.7%), combined with anemic free cash flow generation (5.4% FCF margin), suggest the company is struggling with capital efficiency and debt servicing capacity.
Why Buy Starwood Property Trust, Inc.. Stock? STWD Key Strengths
- Strong operating margins (26%) and net profit margins (22.3%) demonstrate solid core business economics
- Positive operating cash flow of $977.9M provides liquidity for operations and distributions
- Moderate debt-to-equity ratio of 0.34x is manageable relative to total asset base of $63.2B
STWD Stock Risks: Starwood Property Trust, Inc.. Investment Risks
- Critical interest coverage of 0.5x indicates operating income cannot cover interest obligations, raising sustainability concerns for debt servicing
- Revenue declining 5.3% YoY and net income down 7.1% YoY signal deteriorating operating performance
- Extremely poor capital efficiency with ROE of 6.1% and ROA of 0.7% suggest misallocation of shareholder capital
- Minimal free cash flow ($99.4M) after capex leaves limited cushion for unforeseen challenges or dividend sustainability
Key Metrics to Watch
- Interest coverage ratio trend—must improve above 1.0x to ensure debt sustainability
- Revenue growth reversal—watch for stabilization or return to positive YoY growth
- Return on equity improvement—critical to demonstrate better capital deployment
- Free cash flow generation as percentage of revenue—currently too low at 5.4%
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $325.6M | $168.8M | $0.54 |
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 rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STWD's key strengths?
Claude: Strong operating margins (26%) and net profit margins (22.3%) demonstrate solid core business economics. Positive operating cash flow of $977.9M provides liquidity for operations and distributions.
What are the risks of investing in STWD?
Claude: Critical interest coverage of 0.5x indicates operating income cannot cover interest obligations, raising sustainability concerns for debt servicing. Revenue declining 5.3% YoY and net income down 7.1% YoY signal deteriorating operating performance.
What is STWD's revenue and growth?
Starwood Property Trust, Inc.. reported revenue of $1.8B.
Does STWD pay dividends?
Starwood Property Trust, Inc.. pays dividends, with $668.9M 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 $1.15.
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 STWD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Starwood Property Trust, Inc.. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is STWD stock overvalued or undervalued?
Valuation metrics for STWD: ROE of 6.1% (sector avg: 8%), net margin of 22.3% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy STWD stock in 2026?
Our dual AI analysis gives Starwood Property Trust, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is STWD's free cash flow?
Starwood Property Trust, Inc..'s operating cash flow is $977.9M, with capital expenditures of $878.5M. FCF margin is 5.4%.
How does STWD compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 22.3% (avg: 20%), ROE 6.1% (avg: 8%), current ratio N/A (avg: 1.5).