Stratus Properties Inc. (STRS) | Investment Case

1. Company Snapshot

1.a. Company Description

Stratus Properties Inc., a real estate company, engages in the acquisition, entitlement, development, management, and sale of commercial, and multi-and single-family residential real estate properties primarily in Texas.The company operates in two segments, Real Estate Operations and Leasing Operations.Its leasing operations cover lease of space at retail and mixed-use, and multi-family properties.

Stratus Properties Inc.was incorporated in 1992 and is headquartered in Austin, Texas.

Show Full description

1.b. Last Insights on STRS

Stratus Properties Inc.'s recent performance was hindered by a lack of significant developments in its core business segments. The company's recent refinancing of the Jones Crossing property, while providing a lower interest rate and net cash proceeds, may have been a necessary step to alleviate debt obligations. Furthermore, the absence of any notable earnings releases or significant announcements in the past quarter suggests a period of stability rather than growth. The company's focus on managing its existing assets and liabilities may have taken precedence over exploring new opportunities or initiatives.

1.c. Company Highlights

Last Price	21.03
Change Percentage	-3.13%
Open	21.59
Previous Close	21.71
Market Cap ( Millions)	169
Volume	8776
Year High	26.98
Year Low	15.1
M A 50	20.02
M A 200	18.8

FCF Yield	-23.30%
Dividend Yield	0.00%
ROE	-1.80%
Debt / Equity	111.89%
Net Debt / EBIDTA	-1812.63%
Price To Book	0.89
Price Earnings Ratio	-48.76
Price To FCF	-4.29
Price To sales	4.73
EV / EBITDA	-37.89

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Stratus Properties Inc. Completes Sale of Lantana Place – Retail for $57.5 Million

Nov -20

Source: businesswire.com

Stratus Swings to Q3 Loss on Weak Sales, One-Time Charges

Nov -18

Source: zacks.com

Stratus Posts Q2 Earnings on Home Sales, Boosts Buyback Plan

Aug -18

Source: zacks.com

Zacks Initiates Coverage of Stratus With Neutral Recommendation

Jul -22

Source: zacks.com

Stratus Properties Inc. Completes Sale of West Killeen Market

May -27

Source: businesswire.com

Stratus Properties Inc. Completes Refinancing of Jones Crossing

Mar -13

Source: businesswire.com

Stratus Properties Inc. Completes Refinancing of Lantana Place - Retail

Jan -27

Source: businesswire.com

Stratus Properties Inc. Completes Refinancing of Kingwood Place

Nov -26

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Leasing

Expected Growth: 4.5%

Growing demand for flexible and affordable commercial spaces, increasing urbanization, and rising need for temporary housing solutions drive the leasing market growth.

Real Estate

Expected Growth: 4.5%

Stratus Properties Inc.'s diversified portfolio of office buildings, apartments, and retail centers positions it for growth, driven by increasing demand for commercial and residential spaces, urbanization, and a strong US economy.

7. Detailed Products

Real Estate Development

Stratus Properties Inc. develops and sells residential and commercial properties, including single-family homes, condominiums, and retail and office spaces.

Land Sales

The company sells undeveloped land to third-party developers, builders, and individuals.

Property Management

Stratus Properties Inc. offers property management services, including leasing, maintenance, and rent collection, for its own properties and third-party owners.

Homebuilding

The company designs, constructs, and sells single-family homes, townhomes, and condominiums.

8. Stratus Properties Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Stratus Properties Inc. operates in a niche market with limited substitutes, but there are some alternatives available to customers.

Bargaining Power Of Customers

Customers of Stratus Properties Inc. have limited bargaining power due to the company's strong brand reputation and limited competition.

Bargaining Power Of Suppliers

Suppliers of Stratus Properties Inc. have moderate bargaining power due to the company's dependence on a few key suppliers.

Threat Of New Entrants

The real estate industry is highly competitive, and new entrants can easily enter the market, posing a significant threat to Stratus Properties Inc.

Intensity Of Rivalry

The real estate industry is highly competitive, and Stratus Properties Inc. faces intense rivalry from established players and new entrants.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	49.92%
Debt Cost	3.95%
Equity Weight	50.08%
Equity Cost	9.76%
WACC	6.86%
Leverage	99.67%

11. Quality Control: Stratus Properties Inc. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

UMH Properties

A-Score: 5.8/10

Value: 4.3

Growth: 3.0

Quality: 7.1

Yield: 9.0

Momentum: 2.0

Volatility: 9.7

1-Year Total Return ->

JBG SMITH

A-Score: 5.4/10

Value: 5.3

Growth: 2.9

Quality: 2.3

Yield: 8.0

Momentum: 7.5

Volatility: 6.3

1-Year Total Return ->

Comstock

A-Score: 5.1/10

Value: 5.8

Growth: 5.3

Quality: 8.2

Yield: 0.0

Momentum: 9.0

Volatility: 2.0

1-Year Total Return ->

Orion Office REIT

A-Score: 5.0/10

Value: 7.8

Growth: 4.2

Quality: 3.6

Yield: 10.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

CoreCivic

A-Score: 4.9/10

Value: 6.1

Growth: 3.7

Quality: 4.3

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

Stratus Properties

A-Score: 4.2/10

Value: 8.0

Growth: 4.8

Quality: 3.9

Yield: 3.0

Momentum: 2.5

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

14.89%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.86%

Stratus Properties Inc. - US8631672016

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on STRS

1.c. Company Highlights

Lower Growth

Fairly Valued

Medium Volatility

Revenues Beats

Cheaper

Lower Yield

More Volatile

Weak Momentum

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Leasing

Expected Growth: 4.5%

Real Estate

Expected Growth: 4.5%

7. Detailed Products

Real Estate Development

Land Sales

Property Management

Homebuilding

8. Stratus Properties Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Stratus Properties Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.03$

Current Price

21.03$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA