Strawberry Fields REIT Inc. Common Stock (STRW)

FairStock Score: 75/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

Viewed through a Graham-and-Buffett lens, Strawberry Fields is a small healthcare REIT with 142 facilities and 15,500 beds, but only nine employees, so I want to know how much cash flow is contractual and how much depends on operators. Revenue rose from $99.8M in fiscal year 2023 to $117.1M in fiscal year 2024 and $155.0M in fiscal year 2025, while net income climbed from $2.5M to $4.1M to $7.6M. That is real progress. But the latest filed quarter, fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $40.0M and net income of $2.2M, or $0.16 diluted EPS, barely above the $2.0M and $0.16 in fiscal Q2 2025, the quarter ended 2025-06-30. The four-year Lynch categorization as a FAST GROWER reflects past profit growth, but recent quarters look more mature. At the 2026-10-13 close of $13.04, the FairStock P/E is 20.06, P/B is 22.10, and dividend yield is 4.95%. For a REIT, price-to-book is a key yardstick; 22.10 is not a bargain unless book value badly understates asset value. The stated 4.95% yield suggests a dividend near the fiscal year 2025 diluted EPS of $0.60, so accounting coverage is thin; FFO/AFFO, the right REIT measures, are not in the data. Free cash flow is $83.0M and FCF yield is 11.8%, which is attractive, but the Altman Z-score of 0.79 and Piotroski F-score of 4/9 warn of financial fragility. Leverage, revenue trend, and operator health matter more than EPS here. I see no clear durable moat. The price may be fair if cash flow is durable, but not obviously cheap.

In plain English: Strawberry Fields owns nursing homes and other healthcare buildings and leases them out. Sales and profits have grown over recent years, and it pays a high dividend, but there are signs of financial strain and the shares look expensive compared with the company's accounting value. The stock looks fair to rich based on earnings, while cash flow is the brighter part of the picture.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · 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) · 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