STARWOOD PROPERTY TRUST INC. Starwood Property Trust Inc. (STWD)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

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

I approach Starwood Property Trust as a lender, not a landlord, and the figures demand caution. At the 2026-10-13 close of $12.48, FairStock calculates a P/E of 21.15, price-to-book of 0.71, ROE of 3.69%, ROCE of 0.43%, and a 12.85% dividend yield; its overall score is 60/100. The discount to book and high yield look tempting, but the earnings tell a harder story. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $513.7M, yet net income was only $6.6M, or $0.01 per diluted share. Compare that with fiscal Q2 2025, when net income was $129.8M, or $0.38 per diluted share. Fiscal Q1 2026 was $51.9M and $0.13, so the trend is deteriorating. For full-year fiscal 2025, net income was $411.5M, or $1.15 per diluted share, up from $359.9M and $1.10 in fiscal 2024, but the current run-rate is far below that. The business has scale across commercial and residential lending, infrastructure lending, property, and servicing. Still, lending is a capital-intensive, competitive field. I see no wide moat; underwriting skill matters, but spreads and credit cycles dominate. Leverage is high—debt-to-equity of 3.31—and FairStock's Piotroski score is 4/9. FairStock's Lynch category is slow grower, based on 4.4% annual profit growth and 10.2% revenue growth over five years, though the latest filed quarter shows a sharp drop from fiscal Q2 2025. The 0.71 P/B may signal opportunity, or it may signal expected credit losses. Key bank measures such as CET1, net interest margin, and combined ratio are not in the data, so I cannot judge credit quality fully. I would need evidence that the dividend is covered and book value is real before calling this cheap.

In plain English: Starwood Property Trust is a real estate lender and investor. It makes money from loans tied to commercial and residential property, infrastructure, and some owned real estate. Recent profits have fallen sharply and the company uses a lot of borrowed money, so the business looks weak right now, even though the stock is near its yearly low and trades below the value of its assets on paper.

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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