Starwood Property Trust (MEX:STWD) Beneish M-Score: -2.48 (As of Jul. 31, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

MEX:STWD Starwood Property Trust Inc MEX:STWD
46 GF Score
Price MXN289.86
GF Value MXN247.53
Valuation Modestly Overvalued
! 4 Warning Signs
View Full Analysis

What is Starwood Property Trust Beneish M-Score?

Starwood Property Trust MEX:STWD 46 Beneish M-Score is -2.48 as of Jul. 31, 2026. GuruFocus rates MEX:STWD with a GF Score™ of 46/100 and a GF Value™ of MXN247.53 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 749 REITs companies, Starwood Property Trust ranks worse than 50.73% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Starwood Property Trust's Beneish M-Score or its related term are showing as below:

MEX:STWD' s Beneish M-Score Range Over the Past 10 Years
Min: -2.85   Med: -2.34   Max: -1.62
Current: -2.48

During the past 13 years, the highest Beneish M-Score of Starwood Property Trust was -1.62. The lowest was -2.85. And the median was -2.34.

MEX:STWD
46GF Score
Starwood Property Trust Inc MEX:STWD
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Starwood Property Trust Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Starwood Property Trust for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.2189+0.528 * 1+0.404 * 1+0.892 * 0.8991+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1425+4.679 * -0.007663-0.327 * 1.5104
=-2.60

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was MXN3,199 Mil.
Revenue was 3165.839 + 4779.811 + 3726.441 + 3344.16 = MXN15,016 Mil.
Gross Profit was 3165.839 + 4779.811 + 3726.441 + 3344.16 = MXN15,016 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN1,119,602 Mil.
Property, Plant and Equipment(Net PPE) was MXN0 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN1,956 Mil.
Selling, General, & Admin. Expense(SGA) was MXN4,004 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN218,185 Mil.
Net Income was 935.5 + 1745.022 + 1331.055 + 2444.294 = MXN6,456 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = MXN0 Mil.
Cash Flow from Operations was 1687.175 + 8800.286 + 6192.837 + -1644.806 = MXN15,035 Mil.
 Total Receivables was MXN2,919 Mil.
Revenue was 3749.272 + 4230.912 + 4607.136 + 4113.633 = MXN16,701 Mil.
Gross Profit was 3749.272 + 4230.912 + 4607.136 + 4113.633 = MXN16,701 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN1,271,750 Mil.
Property, Plant and Equipment(Net PPE) was MXN0 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN953 Mil.
Selling, General, & Admin. Expense(SGA) was MXN3,898 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN164,087 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(3199.145 / 15016.251) / (2919.201 / 16700.953)
=0.213046 / 0.174792
=1.2189

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(16700.953 / 16700.953) / (15016.251 / 15016.251)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 0) / 1119602.161) / (1 - (0 + 0) / 1271750.186)
=1 / 1
=1

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=15016.251 / 16700.953
=0.8991

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(953.182 / (953.182 + 0)) / (1956.015 / (1956.015 + 0))
=1 / 1
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(4004.231 / 15016.251) / (3898.07 / 16700.953)
=0.26666 / 0.233404
=1.1425

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((218185.301 + 0) / 1119602.161) / ((164087.407 + 0) / 1271750.186)
=0.194878 / 0.129025
=1.5104

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(6455.871 - 0 - 15035.492) / 1119602.161
=-0.007663

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Starwood Property Trust has a M-score of -2.60 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.48 mean?
Starwood Property Trust (MEX:STWD) has a Beneish M-Score of -2.48 as of Jul. 31, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Starwood Property Trust and its competitors. According to the industry distribution chart, Starwood Property Trust ranks #380 out of 749 companies in the REITs industry, placing it in the top 50.7%.
Is Starwood Property Trust's Beneish M-Score too high?
Starwood Property Trust's current Beneish M-Score is -2.48. Based on the distribution chart, Starwood Property Trust ranks #380 out of 749 companies in the REITs industry, which is below the industry midpoint. Overall, Starwood Property Trust has a GF Score™ of 46/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Starwood Property Trust's Beneish M-Score compare to RITM and DX?
According to the REITs industry distribution chart, Starwood Property Trust ranks #380 out of 749 companies for Beneish M-Score. This places Starwood Property Trust in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a REITs company?
A good Beneish M-Score depends on the REITs industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Starwood Property Trust and its competitors. Starwood Property Trust's current Beneish M-Score is -2.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Starwood Property Trust stock overvalued right now?
Based on GuruFocus' analysis, Starwood Property Trust (MEX:STWD) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN247.53, compared to a current price of MXN289.86 — trading 17.1% above its estimated fair value. The current Beneish M-Score is -2.48. Starwood Property Trust's overall GF Score™ is 46/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Starwood Property Trust (MEX:STWD), the current Beneish M-Score is -2.48 as of Jul. 31, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Starwood Property Trust (MEX:STWD) Overvalued in 2026?

Based on GuruFocus' analysis, Starwood Property Trust stock appears to be overvalued. The current stock price of MXN289.86 is trading 17.1% above its estimated GF Value™ of MXN247.53. GuruFocus considers Starwood Property Trust to be Modestly Overvalued.

Key valuation signals for MEX:STWD:

  • Beneish M-Score: -2.48
  • GF Value™: MXN247.53 vs. price of MXN289.86 (17.1% above fair value)
  • GF Score™: 46/100 with 4 warning signs

No single metric tells the full story. See the MEX:STWD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Starwood Property Trust Business Description

Industry Real EstateREITs
Address 2340 Collins Avenue, Suite 700, Miami Beach, FL, USA, 33139
Starwood Property Trust Inc is a real estate investment trust principally engaged in originating, acquiring, and managing commercial mortgage loans, commercial mortgage-backed securities, and other real estate investments in the U.S., Australia, and Europe. The company has four reportable business segments: Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing. The majority of its revenue is generated from the Commercial and Residential Lending segment, which engages mainly in originating, acquiring, financing, and managing commercial first mortgages, non-agency residential mortgages (residential loans), commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), and other real estate and related debt investments.
46GF Score

Get the complete analysis for MEX:STWD

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN289.86
Price
MXN247.53
GF Value