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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.
$16.62
$0.39 (-2.26%)
Live · 05:18 PM
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.
17.5x earnings, 61.4x 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.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.93B
▲ +3.0% YoY
Net Income (TTM)
$351M
▲ +14.3% YoY
Op. Margin
2.27%
▲ +13.9pp YoY
ROIC
0.17%
▲ +1.0pp YoY
Cash Flow & Balance Sheet
FCF (FY)
$99M
▼ -84.6% YoY
Op. Cash Flow (TTM)
$833M
▲ +51.2% YoY
Net Debt
$13.48B
Cash & Equiv.
$290M
5Y CAGR: +11.0%
Continue Research
At a P/E of 17.5 and a price-to-free-cash-flow of 61.4, Starwood Property Trust (STWD) trades above a two-stage DCF intrinsic value of about $-32.04 per share, so at $16.62 the stock looks overvalued (292.8% 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 33/100 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 11.2%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $-32.04 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 $-24.03. At today's $16.62, that puts the stock about 292.8% 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.
Starwood Property Trust scores 33 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 2.3% operating margin and a 0.2% 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.
Yes, Starwood Property Trust pays a regular dividend of about $1.87 per share per year (typically in quarterly installments), a yield of roughly 11.2% at the current price. That is a payout ratio of about 195.0% 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.
That depends on valuation and quality together, not either alone. STWD currently trades above its estimated intrinsic value and scores 33/100 on quality (lower-quality). It also yields about 11.2%. 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.