Starwood Property Trust, Inc.STWD
NYSE•Real Estate•REIT - Mortgage
Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States and internationally. It operates through four segments: Commercial and Residential Lending; Infrastructure Lending; Property; and Investing and Servicing. The Commercial and Residential Lending segment originates, acquires, finances, and manages commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), and residential mortgage-backed securities, as well as other real estate and real estate-related debt investments, including distressed or non-performing loans. Its Infrastructure Lending segment originates, acquires, finances, and manages infrastructure debt investments. The Property segment engages primarily in acquiring and managing equity interests in stabilized and to be stabilized commercial real estate properties, including multifamily properties, multi-tenant medical office net lease properties and diversified single-tenant triple net lease properties that are held for investment. Its Investing and Servicing segment manages and works out problem assets; acquires and manages unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions; originates conduit loans for the primary purpose of selling these loans into securitization transactions; and acquires commercial real estate assets that include properties acquired from CMBS trusts. The company qualifies as a REIT for federal income tax purposes and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Starwood Property Trust, Inc. was incorporated in 2009 and is headquartered in Miami Beach, Florida.
as of March 2026
Are revenues and earnings expanding?
$1.94B in TTM revenue grew 5.2% YoY, reaching $512.46M last quarter. TTM EBITDA of $157.15M on operating income of $32.15M shows growth is flowing through. Net income of $351.17M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 6.3% is down 1.8% YoY — costs are rising relative to revenue. Net margin at 10.1%. ROE of 5.3% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 17.4x P/E, the stock trades in line with market averages — fairly valued. P/S of 3.2x and P/B of 0.9x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
Is the business self-funding?
FCF of $-55.78M on $93.56M in operating cash flow. The FCF / Net Income ratio of -0.2x shows cash consumption — the business is not yet self-funding. Cash reserves of $290.29M provide financial flexibility. Shares outstanding rose 9.4% YoY — shareholder dilution is eroding per-share value.
Competitive analysis based on 61 quarters of fundamental data
Operating margins are under pressure, averaging 1.1%. The business may lack pricing power or face rising costs.'
ROE is positive at ~5.6% on average, adequate but below the threshold typically associated with wide moats.
Data-driven red flags and warnings across 61 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
Limited debt-to-equity data available.
Revenue has softened, declining in 4 quarters. Monitor for further erosion.
FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.
Shares outstanding increased 17.0% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation
5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.