Stratus Properties Inc. Common Stock (STRS)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a durable business bought at a discount. Stratus is a tiny Austin-focused real estate developer with only 34 employees and a $143.2M market cap, so results depend on lumpy property sales and leasing rather than a steady consumer franchise. In fiscal 2025, the company reported revenue of $10.6M and net income of $2.8M, or $1.47 per diluted share, a sharp swing from fiscal 2024's $34.9M revenue, $-1.9M net income, and $0.24 EPS. In the fiscal Q1 2026 quarter ended 2026-03-31, it reported revenue of $82,000 and net income of $13.5M, or $0.82 per share. That is not a steady earnings stream I can underwrite. FairStock's calculations at the 2026-10-13 close of $17.94 show a P/E of 6.72, P/B of 0.68, and a Graham Number of $39.91, implying 55.05% margin of safety. But I also see trailing free cash flow of -$35.7M, FCF yield of -24.9%, ROCE of -2.67%, ROE of 6.24%, Piotroski F-Score of 2/9, and Altman Z-Score of 0.70. Debt/equity is 0.46. The low price relative to book and reported earnings may reflect asset value, but cash burn and weak balance-sheet safety are warnings. The Lynch category is TURNAROUND, returned to profit after a loss within the last three years, not a steady compounder. Without a clearer margin of safety in cash flow and a durable competitive advantage, I would treat the low multiple as compensation for volatility, not a sure bargain.

In plain English: Stratus Properties is a small Texas real estate company that develops, manages, leases, and sells homes and commercial property, mostly around Austin. The business has been uneven: it lost money in fiscal 2023 and 2024, then made money in fiscal 2025 and in the first quarter of 2026, though cash flow is negative and revenue is very small. At $17.94 on 2026-10-13, the stock looks cheaper than its accounting values, but the weak cash flow makes that cheapness uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer