Starwood Property Trust, Inc. STWD
Composite 39/100; the shares have moved about 18% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Balance-sheet strength ranks 24/100 — a strong mark against it.
Income ranks 66/100 — a moderate point in its favour.
Balance-sheet strength ranks 24/100 — a strong mark against it. Momentum ranks 32/100 — a moderate mark against it. Quality ranks 38/100 — a moderate mark against it.
What the company does Starwood Property Trust (STWD) is a commercial-focused mortgage REIT with four segments: Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing. It originates and manages debt investments including CMBS, mezzanine loans, and equity interests in stabilized commercial properties.
Key financials ROE 5% and ROA 1% reflect thin profitability. Gross margin is 88% but net margin is 61%, with revenue growth 22% but EPS down 60%. Debt/Equity is 3.16x and interest coverage is 1.31x, indicating leverage risk. Dividend yield is 12% but payout ratio is 202%, signaling sustainability concerns.
Stock health Momentum is negative across all periods: -7% (3m), -6% (6m), -9% (12m), and -13% from the 52-week high. RSI(14) is 42, indicating neither overbought nor oversold conditions. Sideravia scores Valuation at the 67th percentile but Quality at the 44th, reflecting weak fundamentals despite attractive valuation.
Price vs fair value The stock trades at a discount to both our fair-value estimate and analyst target. - Fair-value estimate discount: 54% (internal estimate) - Analyst 12-month target discount: 25% (analyst count 8) - Recent earnings decline expected (Zacks) - Portfolio acquisition signals growth focus (CRE Daily) - Weak ROE and high payout ratio limit upside (financials)
Looking forward Forward P/E of 10x and PEG of 0.12 suggest undervaluation relative to growth, but weak profitability and high leverage temper upside. Infrastructure and property segments may drive future growth, but execution risk remains. Monitor earnings trends and leverage metrics for signs of stabilization.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.