| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | 21.6x | 17.3x | Top tier | |
Growth | 41 | 11.8% | 7.1% | Around median | |
Quality | 76 | 6.3% | 4.5% | Top tier | |
Safety | 25 | 13.2x | 2.6x | Bottom tier | |
Capital Return | 52 | 15.32% | 0.06% | Around median | |
Momentum | 11 | -23.3% | -1.6% | Bottom tier | |
Sentiment | 73 | 5 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Starwood Property Trust operates in commercial and residential real estate lending, property ownership, and real estate finance investment and servicing. It earns income from loans, rents, special servicing fees, and securitizations; management explained on the 2026-08-06 call that commercial real estate lending accounts for about half of revenue. In quarter 2 of fiscal year 2026, ended 2026-06-30, commercial and residential lending contributed $186 million in distributable earnings, compared with $34 million from the property segment and $42 million from investing and servicing. These are segment contributions measured in distributable earnings, while the company-wide total under this measure was $152 million.
Revenue in quarter 2 of fiscal year 2026 was approximately $513.7 million, up 15.6% from the same quarter a year earlier, when revenue was $444.3 million. However, net income fell to $6.6 million, compared with $129.8 million in quarter 2 of fiscal year 2025, ended 2025-06-30, and diluted earnings per share were $0.01. According to EL7 data, operating cash flow for quarter 2 of fiscal year 2026 was approximately $170.7 million; revenue growth and cash generation are therefore offset by clear weakness in accounting earnings, while management attributes the pressure on earnings to carrying distressed assets and elevated cash balances.
The opportunity for improvement centers on redeploying capital tied up in distressed assets, increasing Woodstar income, and expanding the net lease platform. At the end of quarter 2 of fiscal year 2026, the funded commercial loan portfolio totaled $17.3 billion, and the net lease portfolio totaled $2.7 billion with 100% occupancy. Meanwhile, nonaccrual loans and real estate acquired through foreclosure totaled $1.9 billion on a distributable earnings basis, with $706 million in reserves already reflected in book value; improvement therefore depends on resolution proceeds and reinvestment, alongside continued new financing.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-11-06
Reported revenue compared with the $513.7 million benchmark
Net income compared with the $6.6 million benchmark
The median analyst price target is $20, a low-confidence indicative estimate because it covers only three analysts, and reflects their expectations for growth and future performance; the consensus average is also $20, with an overall Buy recommendation. The industry-multiple valuation is $11, within a range of $8.97 to $16, based on next year's earnings and a median multiple of 5.9 across 38 companies, measuring the company's value when priced against its peers. The two methods do not converge, as the analyst target exceeds the upper end of the industry-multiple range, and the difference reflects growth expectations in the former versus a peer earnings benchmark in the latter. Analyst targets tend to be optimistic by nature, so the divergence expresses different assumptions and does not make either value a standalone judgment of fair value.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Starwood Property Trust combines commercial and residential lending, property ownership, and investing and servicing, including securitization and special loan servicing. Management explained on the 2026-08-06 call that commercial real estate lending accounts for about half of revenue. In quarter 2 of fiscal year 2026, ended 2026-06-30, commercial and residential lending contributed $186 million in distributable earnings, compared with $34 million from property and $42 million from investing and servicing. Woodstar and the net lease platform give the company direct exposure to rents alongside financing income.
Net income was $6.6 million in quarter 2 of fiscal year 2026, ended 2026-06-30, while management reported distributable earnings of $152 million for the same period. Distributable earnings is a non-GAAP measure, so the two figures do not represent the same definition of profit. Management explained on the 2026-08-06 call that reserves for distressed assets are reflected in book value before realized losses flow through to distributable earnings upon sale. It expects approximately $47 million in realized losses associated with targeted sales in quarter 3 of fiscal year 2026, making the timing of resolutions influential for this measure.
Automated analysis for informational purposes only — not investment advice.
When: Fiscal year 2026
Distressed asset resolutions against the $800 million target
Woodstar began implementing HUD-approved rent increases of 8.4% on 2026-07-01, and management expected the impact to emerge in quarter 3 of fiscal year 2026. According to the quarter 2 fiscal year 2026 earnings presentation, for the quarter ended 2026-06-30, portfolio rents average 38% below market levels, supporting the ability to pass through most of the increase. Debt of $416 million also requires refinancing within the six months following the 2026-08-06 call. Management expected additional financing to release the company's share of $110 million for reinvestment, but this remains dependent on completing the refinancing.
The balance of nonaccrual loans and real estate acquired through foreclosure totaled $1.9 billion on a distributable earnings basis at the end of quarter 2 of fiscal year 2026, ended 2026-06-30. Reserves associated with these assets totaled $706 million and are already reflected in book value. The company recorded no new nonaccrual loans during the quarter, but it downgraded three multifamily loans in Phoenix, Clearwater, and Mesa to risk rating 4. It aims to resolve approximately $800 million by the end of fiscal year 2026, subject to market conditions, so sales proceeds and the scale of losses remain key tests.
According to EL7 data, operating cash flow totaled $1.1 billion for the trailing 12 months through 2026-06-30, compared with net income of $227.9 million for the same period. Operating cash flow was equivalent to 479% of net income, showing that cash generated exceeded accounting profit during that period. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the trailing 12 months through 2026-06-30 was approximately $451.6 million. However, this cash flow strength does not eliminate the risks of debt and distressed asset resolutions, and monitoring the results scheduled for release on 2026-11-06, an expected date, remains important for assessing its continuation.