Stratus Properties Inc. Common Stock (STRS) fair value
Real Estate · Real Estate - Diversified · NASDAQ · United States
$17.75-1.28%
Market cap $142MNext earnings 2026-08-13Updated Oct 20, 2026
Our verdict
Trades 18% below our fair value
Price
$17.75
Model fair valueConfidence: good
$21.63
Model range
$15.52 to $28.96
Fair value $21.63
Price $17.75
2 models fit Stratus Properties Inc. Common Stock and they disagree: 0 of 2 land within 15% of the average.
Two or more of our models back this value.
Discount(i)
Valued as a mature, profitable company: P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionStratus Properties Inc. Common Stock (STRS)
Fair value (2 models)
$21.63
ACCE price target
$18.10
Rating
Undervalued
Horizon
12 months
Fair value published on 20 Oct 2026, 15:04 CEST; previously $22.12 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 15:04 CEST.
Price used: $17.75 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
17.9% below
+21.8% to fair value
ACCE score
37
out of 100
P/E
6.7x
1-year return
-9.2%
Dividend yield
0.00%
Stratus Properties Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Stratus Properties develops and sells mixed-use real estate in Austin, Texas, including the Barton Creek and Lantana Place projects, and it also runs a hotel and an office portfolio. The bull case rests on the land and entitlement value of its Austin holdings, which the market has been slow to credit, and on a P/E of 6.8 that sits well below the forward multiple of 19.7, a gap that usually means trailing earnings are carrying one-off gains that won't repeat. Against that, revenue fell 24.8%, the operating margin is -197.7%, and the gross margin is just 2.1%, so the next few quarters of lot sales and closings will decide whether the reported numbers are noise or a real earnings reset. With a $144M market cap and an ACCE score of 37/100, the name only earns a deeper look if the coming sales and project timing can be tied to specific Austin parcels rather than to the headline multiple.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Revenue and earnings contracting
Revenue is down 24.8% year over year and earnings 74.4%, with a 5-year revenue CAGR of -7.6%. The business is shrinking, not just running through a soft quarter.
high
Heavy cash burn
Free cash flow is -$38.0M against a $143M market cap, while debt-to-equity sits at 0.78. The company is consuming cash faster than it generates it.
moderate
Insider selling without buying
Insiders disclosed $7.00M in sales and no buys across the last 10 disclosed transactions. Insider ownership is 19.1%, so the selling is worth noting.
moderate
Thin operating profitability
Operating margin is -197.7% and gross margin is 2.1%. The 75.0% net margin looks flattered by non-operating items rather than core operations.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-03-31 · prices to Oct 23, 2026
Why it could do well
Consensus model fair value sits above the share price, with two of three valuation models in agreement.
The stock trades at a forward P/E of 19.7x against a sector median of 17.2x, reflecting expected earnings recovery.
Diluted share count fell 0.5% last fiscal year, so existing holders own a slightly larger slice of the company.
Why it could disappoint
Revenue fell 24.8% year over year and has declined by an average of 7.6% a year over five years.
Free cash flow was negative $38M over the last twelve months, and the free cash flow yield is -26.5%.
Return on invested capital of 2.7% is thin, and return on equity of 6.2% offers little cushion against debt at 0.78 times equity.
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Valuation
INVESTOR
Where STRS's valuation models land
Price
$17.75
Model fair value
$21.63
Model range
$15.52 to $28.96
Fair value $21.63
Price $17.75
The price sits inside the model range.
Model
Fair value
Upside
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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