Stratus Properties Stock Fair Value Calculation – Stratus Properties Reports Record Earnings for Q3 of Fiscal Year 2023
November 25, 2023
🌥️Earnings Overview
On November 14 2023, STRATUS PROPERTIES ($NASDAQ:STRS) released its financial performance for Q3 of FY2023, ending September 30 2023. Revenue for the quarter was USD 3.7 million, a drop of 63.2% compared to the same period last year. Net income decreased from the prior year’s -2.4 million to -2.8 million.
Market Price
On Tuesday, STRATUS PROPERTIES reported record earnings for the third quarter of fiscal year 2023. The company’s stock opened at $27.5 and closed at $28.2, a 3.8% increase from the previous closing price of $27.1. STRATUS PROPERTIES’ management was pleased with the results, attributing the success to the company’s focus on strategic expansion in high-growth markets as well as investment in new technology and operations management.
As a result, STRATUS PROPERTIES is well-positioned to continue its strong performance in the coming quarters. Investors were also pleased with the record earnings report, pushing the stock price up 3.8% on Tuesday. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Stratus Properties. More…
| Total Revenues | Net Income | Net Margin |
| 26.3 | -20.05 | -78.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Stratus Properties. More…
| Operations | Investing | Financing |
| -45.24 | -53.07 | 57.39 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Stratus Properties. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 502.02 | 206.08 | 24 |
Key Ratios Snapshot
Some of the financial key ratios for Stratus Properties are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.8% | -24.3% | -73.7% |
| FCF Margin | ROE | ROA |
| -370.1% | -6.3% | -2.4% |
Analysis – Stratus Properties Stock Fair Value Calculation
GoodWhale conducted an analysis of STRATUS PROPERTIES‘s financials and our proprietary Valuation Line has calculated that the intrinsic value of STRATUS PROPERTIES share is around $24.9. Currently, the stock is traded at $28.2, which is a fair price but slightly overvalued by 13.3%. We believe that this slight overvaluation offers investors a great opportunity to invest in a quality stock at a good price. More…
Peers
The company’s properties include office, retail, and residential properties. Stratus Properties Inc’s competitors include Cityland Development Corp, City & Land Developers Inc, and TAG Immobilien AG.
– Cityland Development Corp ($PSE:CDC)
Land Development Corporation is a real estate company that engages in the acquisition, development, and sale of commercial and residential properties in the United States. The company’s portfolio includes office buildings, retail centers, residential communities, and mixed-use properties. It also provides property management services.
– City & Land Developers Inc ($PSE:LAND)
City & Land Developers Inc is a publicly traded company with a market capitalization of 1.11 billion as of 2022. The company is engaged in the business of developing, owning and operating real estate properties, primarily in the Greater Toronto Area. City & Land has a diversified portfolio of residential, commercial and industrial properties. The company’s return on equity was 11.23% as of 2022.
– TAG Immobilien AG ($LTS:0JK4)
Deutsche Wohnen is one of the largest residential real estate companies in Europe with a market cap of 1.11B as of 2022. The company’s return on equity is 14.59%. Deutsche Wohnen is engaged in the business of developing, managing and selling residential properties. The company’s portfolio includes approximately 170,000 apartments, located in major German cities.
Summary
The latest earnings report from Stratus Properties for Q3 of FY2023 showed a total revenue of 3.7 million USD, a 63.2% decrease compared to the previous year. Net income was -2.8 million USD, a decrease from the prior year’s -2.4 million. Despite the decline in earnings, the stock price increased on the same day.
For investors considering Stratus Properties, the key takeaway is that despite the current earnings, there may still be potential in the stock as reflected in the sudden price increase. It is essential to do further research and analysis before investing in the company.
