Stratus Properties (STRS) AI Stock Analysis

• Market Cap: $179.99M
• Dividend Yield: N/A
• Average Volume (3M): 8.09K
• Price to Earnings (P/E): 84.8
• Beta (1Y): 1.25
• Revenue Growth: -16.54%
• EPS Growth: -336.86%
• Country: US
• Employees: 34
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.03
• Shares Outstanding: 8,078,754
• 10 Day Avg. Volume: 11,480
• 30 Day Avg. Volume: 8,093
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.53
• Enterprise Value/Revenue: 12.70
• Enterprise Value/Gross Profit: 2.97K
• Enterprise Value/Ebitda: -53.11
• 1Y Price Target: $17.00
• Price Target Upside: -19.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $17.00 ▼(-19.66% Downside)

Stratus Properties' overall stock score is primarily influenced by its financial challenges, including negative profitability and cash flow issues. While technical analysis provides mixed signals, recent corporate events offer some positive outlook. However, the negative valuation metrics weigh heavily on the overall score.

Stratus Properties Business Overview & Revenue Model

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.

How the Company Makes Money

Stratus Properties generates revenue through several key streams, including the sale of residential and commercial properties, leasing income from its real estate holdings, and management fees from properties under management. The company also benefits from partnerships and joint ventures that allow for shared investment in larger projects. Additionally, Stratus may engage in land development, which can provide substantial profits upon the sale of developed lots to builders. Market demand for real estate in its target areas, along with strategic property acquisitions and development projects, plays a significant role in its earnings.

Stratus Properties Financial Statement Overview

Summary

Stratus Properties faces financial challenges with inconsistent profitability and negative cash flows. Despite some revenue growth, the company struggles with cost management and liquidity constraints, as indicated by negative margins and cash flow issues.

Income Statement

Stratus Properties shows a mixed income statement performance. The TTM data indicates a slight revenue growth of 9.52%, but profitability metrics are concerning with negative net and EBIT margins. Historical data reveals fluctuating revenue growth and inconsistent profitability, with occasional positive net income. The company struggles with maintaining stable gross and net profit margins, indicating challenges in cost management and revenue generation.

Balance Sheet

The balance sheet reflects moderate financial leverage with a debt-to-equity ratio of 1.12 in the TTM period, slightly higher than previous years. The equity ratio is relatively stable, but the return on equity is negative, indicating inefficiencies in generating returns from equity. The company has managed to maintain a reasonable equity base, but high debt levels pose potential risks.

Cash Flow

Cash flow analysis reveals significant challenges. The TTM period shows negative operating and free cash flows, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating cash flow issues in covering net income. Historical data shows a pattern of negative free cash flow, suggesting ongoing liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.83M	54.18M	17.27M	37.50M	28.24M	61.02M
Gross Profit	153.00K	11.17M	-1.78M	5.71M	4.02M	-6.00M
EBITDA	-8.57M	1.78M	-12.69M	-8.27M	-10.52M	7.20M
Net Income	-3.49M	1.96M	-14.81M	-7.08M	57.39M	-24.48M
Balance Sheet
Total Assets	574.82M	532.61M	517.77M	445.14M	541.23M	544.02M
Cash, Cash Equivalents and Short-Term Investments	59.39M	20.18M	31.40M	37.67M	24.23M	12.43M
Total Debt	214.73M	210.29M	191.03M	142.98M	120.63M	364.32M
Total Liabilities	236.50M	235.04M	223.16M	173.07M	332.61M	434.25M
Stockholders Equity	191.91M	194.71M	191.48M	207.25M	158.14M	98.91M
Cash Flow
Free Cash Flow	-39.46M	-34.98M	-97.22M	-110.07M	-73.17M	-10.25M
Operating Cash Flow	-19.30M	-5.84M	-51.25M	-55.26M	-53.61M	-4.06M
Investing Cash Flow	813.00K	-21.54M	-46.95M	50.00M	188.94M	-7.82M
Financing Cash Flow	64.91M	16.10M	84.93M	-19.17M	-99.37M	7.47M

Stratus Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRS, the sentiment is Positive. The current price of 21.16 is above the 20-day moving average (MA) of 20.46, above the 50-day MA of 18.63, and above the 200-day MA of 18.90, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 57.69 is Neutral, neither overbought nor oversold. The STOCH value of 63.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRS.

Stratus Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JOE	69 Neutral	$2.86B	34.72	11.20%	1.13%	10.09%	16.70%
MDV	57 Neutral	$149.63M	-36.04	-0.97%	7.91%	-2.40%	42.84%
ILPT	54 Neutral	$395.36M	-4.27	-17.71%	1.34%	0.36%	11.92%
STRS	51 Neutral	$179.99M	84.82	-1.80%	―	-16.54%	-336.86%
SRG	51 Neutral	$234.31M	-2.63	-23.92%	―	-30.14%	27.34%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Stratus Properties Corporate Events

Stratus Properties Partners for Holden Hills Phase 2

On June 13, 2025, Stratus Properties Inc. entered into a partnership agreement for the development of Holden Hills Phase 2, a 570-acre mixed-use project in the Barton Creek community. The agreement involves Stratus’ subsidiaries and an external investor, with each holding a 50% equity interest. The project is designed to include commercial and residential spaces with outdoor amenities, and the partners have made significant initial capital contributions. Additionally, Stratus’ Board has increased its share repurchase program to $25 million, with $23 million available for future purchases, reflecting a strategic move to enhance shareholder value.