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Stratus Properties Inc (STRS) Fair Value & Analysis

Real Estate · US · Market cap $231M

SP Stratus Properties Inc logo Stratus Properties Inc STRS · US
Price$19.32
Fair Value$24.36
Upside+26.1%
Quality39/100
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Weak Growth
Highly profitable · 75.0% net margin
Moderate debt · negative free cash flow
Mixed vs. peers (5/12)
Narrow moat 34/100
Evidence: Medium Range $18.27 – $30.45 Share as image

Fair value as of: Jul 27, 2026

From 6 valuation models · updated 14 days ago

Share price −29.5% over the past month.

Below-average quality, screening 26% undervalued on our models.

What matters now

  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
  • Our model range runs from $18.27 (bear) to $30.45 (bull), base $24.36. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 39/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

$39.73 $15.44 Fair Value $24.36 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range $15.44 – $39.73 · fair‑value band $18.27 – $30.45 · the $19.32 price screens below the $24.36 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 27, 2026.

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Analysis

Stratus Properties Inc (STRS) currently trades at $19.32, while our model-based Fair Value estimate is $24.36, implying the stock looks roughly 26.1% undervalued today. The Quality Score stands at 39/100 (below-average quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Stratus Properties Inc generated revenue of $28.7M at a net margin of 75.0%. Revenue declined 24.8% year over year. It earns a return on equity of 6.2%. Net debt stands at $84.7M. Fundamentals as of Jul 27, 2026

Our scenario range runs from $18.27 (bear case) to $30.45 (bull case); at $19.32, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 41% below its 52-week high and 26% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at -30% fair-value upside, at 26%, STRS screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income $17.88 $17.35 $14.95 76
Gordon GGM $0.2100 $0.3600 $0.4700 70
DDM Multi-Stage $0.2100 $0.3400 $0.3900 61
All 6 models by family
Dividend Discount
Gordon GGM $0.2100 $0.3600 $0.4700 70
DDM Multi-Stage $0.2100 $0.3400 $0.3900 61
Multiples
P/S Multiple $18.27 $24.36 $30.45 58
P/B Multiple $19.14 $25.52 $31.90 55
Asset-Based
NCAV (Graham) $12.81 $17.16 $25.62 50
Economic Profit
Residual Income $17.88 $17.35 $14.95 76

Widest divergence: Multiples ($24.36) versus Dividend Discount ($0.3400). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) $28.7M
Revenue growth (YoY) -24.8%
Net margin 75.0%
Return on equity 6.2%
Free cash flow −$38.0M FY2025
P/E ratio 10.8
More key figures
Operating margin -198%
EPS (TTM) $2.67
EPS growth (YoY) -74.4%
Net debt $84.7M FY2025

Figures from reported company fundamentals · as of Jul 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 39/100

Of which business quality 40 · Market factors (momentum, volatility) 36

Profitability 32
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 53
Disciplined investing over empire-building
Low Volatility 39
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 40
Distance to the 52-week high (market factor)
Net Issuance 86
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Stratus Properties Inc., a real estate company, engages in the entitlement, development, management, leasing, and sale of multi and single family residential and commercial real estate properties in the Austin, Texas area, and other select markets in Texas. The company operates through Real Estate Operations and Leasing Operations segments.

Full company description

Stratus Properties Inc., a real estate company, engages in the entitlement, development, management, leasing, and sale of multi and single family residential and commercial real estate properties in the Austin, Texas area, and other select markets in Texas. The company operates through Real Estate Operations and Leasing Operations segments. Its leasing operations cover lease of space at retail and mixed-use and multi-family properties. The company was formerly known as Fm Properties Inc and changed its name to Stratus Properties Inc. in May 1998. Stratus Properties Inc. was incorporated in 1992 and is based in Austin, Texas.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Stratus Properties Inc reported revenue of $29.9M in FY2025 versus $28.2M in FY2021, a compound +1.5%/yr. Reported net income was $12.0M in FY2025, compounding −32.4%/yr from FY2021.

Growth Quality 13/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$29.9M
Latest YoY
−44.8%
Avg. growth/yr (3Y)
−7.3%
Avg. growth/yr (5Y)
−7.6%
Avg. growth/yr (33Y)
−3.2%
Revenue +1.5%/yr
FY21 $28.2M
FY22 $37.5M
FY23 $17.3M
FY24 $54.2M
FY25 $29.9M
Net income −32.4%/yr
FY21 $57.4M
FY22 $90.4M
FY23 −$14.8M
FY24 $2.0M
FY25 $12.0M

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Cite: Fair Value Calculator (2026). "Stratus Properties Inc Fair Value". https://www.fairvalue-calculator.com/stock/STRS

Peer Group

Real Estate - Diversified · 138 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 41 · Bottom 25%
Fair Value upside +26% · Above median
Return on equity (TTM) 6% · Above median
Return on assets -3% · Bottom 25%
Net margin (TTM) 75% · Top 25%
Operating margin (TTM) -198% · Bottom 25%
Revenue growth -25% · Bottom 25%
Debt / equity 0.70× · Higher than median

Valuation Multiples vs Real Estate - Diversified median · lower = cheaper

P/E (TTM) 10.8× · Cheaper than median
P/B 1.13× · Pricier than 75% of peers
P/S (TTM) 8.06× · Pricier than 75% of peers
PEG 1.19× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 68 · sector 46
FUTURE 0 · sector 33
PAST 25 · sector 17
HEALTH 65 · sector 75
DIVIDEND 0 · sector 45

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Stratus Properties Inc (STRS) overvalued or undervalued?
As of Jul 27, 2026, our model estimates a fair value of $24.36 versus a price of $19.32, about +26% (undervalued).
What is the fair value of STRS?
Our model-based fair value for Stratus Properties Inc is $24.36 (as of Jul 27, 2026), built from audited fundamentals. The current price is $19.32.
What is the quality score of STRS?
Stratus Properties Inc has a Quality Score of 39/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Stratus Properties Inc (STRS)?
Stratus Properties Inc reported trailing-twelve-month revenue of about $28.7M (latest available figure, as of Jul 27, 2026).
What is the net profit margin of STRS?
The net profit margin of Stratus Properties Inc is about 75.0%, meaning it keeps roughly 75.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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