Stratus Properties Inc. Common Stock (STRS)

FairStock Score: 52/100 — MIXED

Key Financials

Strengths

• Generates $70 million in annual free cash flow (29.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.46, providing financial flexibility

Concerns

• Revenue declining at 19.4% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.9 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Stratus Properties Inc. Common Stock is a micro-cap real estate company valued at $239 million. Revenue stands at $30 million. From a quality standpoint, Stratus shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.9 warrants caution. On valuation, the stock is reasonably priced at 20.5x earnings, with trades above its Graham Number with a negative 2% margin. Growth dynamics show revenue growing at -19.4% and profit growth of 3960.9%. Our composite FairStock Score of 52/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $70 million in annual free cash flow (29.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the real estate space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer