Starwood Property Trust, Inc.
The following description of our business should be read in conjunction with the information included elsewhere in this Form 10 K for the year ended December 31, 2025. References in this Form 10 K to we, our, us, or the Company refer to Starwood Property Trust, Inc. and its subsidiaries.
$12.13
-$0.06 (-0.49%)
EOD Oct 21, 2026
Operating margin is thin at 2.62%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 3.0%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 85% versus the prior year, cash generation momentum has weakened. Net debt of $12.25B represents 123.3x FCF, leverage limits flexibility.
20.9x earnings, 45.2x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.98B
▲ +3.0% YoY
Net Income (TTM)
$228M
▲ +14.3% YoY
Op. Margin
0.17%
▲ +13.9pp YoY
ROIC
0.01%
▲ +1.0pp YoY
Cash Flow & Balance Sheet
FCF (FY)
$99M
▼ -84.6% YoY
Op. Cash Flow (TTM)
$1.09B
▲ +51.2% YoY
Net Debt
$13.63B
Cash & Equiv.
$368M
5Y CAGR: +11.0%
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SourceComputed from the 10-Q filed 31 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 28 Sept 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Starwood Property Trust (STWD) overvalued?
At a P/E of 20.9 and a price-to-free-cash-flow of 45.2, Starwood Property Trust (STWD) trades above a two-stage DCF intrinsic value of about $-32.48 per share, so at $12.13 the stock looks overvalued (367.7% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Starwood Property Trust scores 34/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 15.6%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Starwood Property Trust's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $-32.48 per share for STWD, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $-24.36. At today's $12.13, that puts the stock about 367.7% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Starwood Property Trust a high-quality business?+
Starwood Property Trust scores 34 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 0.2% operating margin and a 0.0% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Starwood Property Trust (STWD) pay a dividend, and how much?+
Yes, Starwood Property Trust pays a regular dividend of about $1.91 per share per year (typically in quarterly installments), a yield of roughly 15.6% at the current price. That is a payout ratio of about 307.1% of earnings, so the dividend is stretched at this level. Starwood Property Trust has grown the dividend at roughly 4.8% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For STWD's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Starwood Property Trust a good stock to buy right now?+
That depends on valuation and quality together, not either alone. STWD currently trades above its estimated intrinsic value and scores 34/100 on quality (lower-quality). It also yields about 15.6%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Real Estate Investment Trusts
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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