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STRW Stock Analysis: Top Micro-Cap Hold (Score 55.0/100) | Blank Capital Research | Blank Capital Research
STRW
Strawberry Fields REIT, Inc.
$13.18
-0.04 (-0.30%)
Score55.0
Data as of Apr 6, 2026
STRW
Strawberry Fields REIT, Inc.
FinancialsTrading
$13.18
-0.04 (-0.30%)
Open $13.34High $13.34Low $12.95Prev $13.22Vol ---52W: $8.70 – $14.00
Hold
Composite score
01234567890123456789.0123456789
Global rank
#181
Percentile
Top 4%
Business quality
72nd
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 71.9GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
62.2%
Sector: 8.5%
Dividend Analysis audit
INCOME
4.72%
Trailing Yield
$4.72
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
26%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, Strawberry Fields REIT, Inc. (STRW) receives a "Hold" rating with a composite score of 55.0/100, ranked #181 out of 4446 stocks. Key factor scores: Quality 72/100, Value 74/100, Momentum 44/100. This is quantitative analysis only — not investment advice.
Strawberry Fields REIT, Inc. (STRW) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Strawberry Fields REIT, Inc. Do?
Strawberry Fields REIT, Inc. (STRW) is a micro-cap company in the Financials sector, operating within the Trading industry. The stock has a market capitalization of $163M, making it a notable participant in its sector. Investors researching STRW stock will find a comprehensive, data-driven analysis below covering valuation, profitability, growth, dividends, and peer comparisons for the Trading space.
Strawberry Fields REIT, Inc. (STRW) Stock Rating — Hold (April 2026)
As of April 2026, Strawberry Fields REIT, Inc. receives a Hold rating with a composite score of 55.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.STRW ranks #181 out of 4,446 stocks in our coverage universe. Within the Financials sector, Strawberry Fields REIT, Inc. ranks #68 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
STRW Stock Price and 52-Week Range
Strawberry Fields REIT, Inc. (STRW) currently trades at $13.18. The stock lost $0.04 (0.3%) in the most recent trading session. The 52-week high for STRW is $14.00, which means the stock is currently trading -5.9% from its annual peak. The 52-week low is $8.70, putting the stock 51.5% above its annual trough. Recent trading volume was 8K shares, suggesting relatively thin trading activity.
Is STRW Overvalued or Undervalued? — Valuation Analysis
Strawberry Fields REIT, Inc. (STRW) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 5.48x, compared to the Financials sector average of 14.88x — a discount of 63%. The price-to-book ratio stands at 3.41x, versus the sector average of 1.22x. The price-to-sales ratio is 1.19x, compared to 0.90x for the average Financials stock. On an enterprise value basis, STRW trades at 7.92x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, Strawberry Fields REIT, Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Strawberry Fields REIT, Inc. Profitability — ROE, Margins, and Quality Score
Strawberry Fields REIT, Inc. (STRW) earns a quality factor score of 72/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 62.2%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 3.5% versus the sector average of 1.2%.
On a margin basis, Strawberry Fields REIT, Inc. reports gross margins of 100.0%. The operating margin is 54.9% (sector: 21.8%). Net profit margin stands at 21.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 35.7% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
STRW Debt, Balance Sheet, and Financial Health
Strawberry Fields REIT, Inc. has a debt-to-equity ratio of 1573.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.06x, suggesting adequate working capital coverage. Total debt on the balance sheet is $795M. Cash and equivalents stand at $20M.
STRW has a beta of 0.10, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Strawberry Fields REIT, Inc. is 68/100, reflecting average volatility within the normal range for its sector.
Strawberry Fields REIT, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Strawberry Fields REIT, Inc. reported revenue of $144M and earnings per share (EPS) of $0.60. Net income for the quarter was $31M. Operating income came in at $79M.
In FY 2025, Strawberry Fields REIT, Inc. reported revenue of $155M and earnings per share (EPS) of $0.60. Net income for the quarter was $33M. Revenue grew 32.4% year-over-year compared to FY 2024. Operating income came in at $84M.
In Q3 2025, Strawberry Fields REIT, Inc. reported revenue of $40M and earnings per share (EPS) of $0.16. Net income for the quarter was $9M. Revenue grew 34.8% year-over-year compared to Q3 2024. Operating income came in at $22M.
In Q2 2025, Strawberry Fields REIT, Inc. reported revenue of $38M and earnings per share (EPS) of $0.16. Net income for the quarter was $9M. Revenue grew 29.3% year-over-year compared to Q2 2024. Operating income came in at $21M.
Over the past 8 quarters, Strawberry Fields REIT, Inc. has demonstrated a growth trajectory, with revenue expanding from $29M to $144M. Investors analyzing STRW stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
STRW Dividend Yield and Income Analysis
Strawberry Fields REIT, Inc. (STRW) currently pays a dividend yield of 4.7%. At this yield, a $10,000 investment in STRW stock would generate approximately $$472.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning STRW offers above-average income for its sector. With a net margin of 21.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
STRW Momentum and Technical Analysis Profile
Strawberry Fields REIT, Inc. (STRW) has a momentum factor score of 44/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
STRW vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing STRW against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full STRW vs S&P 500 (SPY) comparison to assess how Strawberry Fields REIT, Inc. stacks up against the broader market across all factor dimensions.
STRW Next Earnings Date
No upcoming earnings date has been announced for Strawberry Fields REIT, Inc. (STRW) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy STRW? — Investment Thesis Summary
Strawberry Fields REIT, Inc. presents a balanced picture with arguments on both sides. The quality score of 72/100 indicates above-average profitability and business fundamentals. The value score of 74/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 68/100) reduces downside risk.
In summary, Strawberry Fields REIT, Inc. (STRW) earns a Hold rating with a composite score of 55.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on STRW stock.
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Institutional Research Dossier
Strawberry Fields REIT, Inc. (STRW) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Strawberry Fields REIT (STRW) receives a Hold rating, driven by a mixed assessment of its financial performance and valuation. While the company exhibits strong profitability and revenue growth compared to the sector, its high debt levels and relatively high P/E ratio raise concerns. The Hold rating reflects a balanced view, acknowledging the company's strengths while remaining cautious due to its financial leverage and valuation premiums.
The most critical takeaway is the need for STRW to manage its debt effectively and demonstrate sustained growth to justify its current valuation. The company's impressive ROE and operating margins are encouraging, but the high debt-to-equity ratio presents a significant risk. Investors should closely monitor STRW's ability to maintain its growth trajectory and improve its balance sheet to determine whether a more bullish or bearish stance is warranted.
Business Strategy & Overview
Strawberry Fields REIT, Inc. operates as a real estate investment trust, focusing on acquiring and leasing properties primarily to tenants in the cannabis industry. This specialization differentiates STRW from traditional REITs, exposing it to both the opportunities and challenges of the rapidly evolving cannabis market. The company's revenue model is based on leasing income generated from these properties, making tenant selection and lease terms critical to its financial performance.
STRW's strategic positioning within the cannabis industry is crucial. As cannabis legalization expands across various states, the demand for specialized real estate to support cultivation, processing, and retail operations increases. STRW aims to capitalize on this trend by providing tailored real estate solutions to cannabis operators. However, the company also faces competition from other REITs and private investors entering the cannabis real estate market.
The company's growth strategy likely involves acquiring additional properties in strategic locations and expanding its relationships with established cannabis operators. This requires careful due diligence to ensure the properties meet the specific needs of cannabis businesses and comply with local regulations. Furthermore, STRW must manage its capital effectively to fund these acquisitions while maintaining a healthy balance sheet.
The industry context is characterized by rapid growth, regulatory uncertainty, and increasing competition. While the long-term outlook for the cannabis industry appears positive, short-term challenges such as fluctuating cannabis prices and evolving regulations can impact the profitability of STRW's tenants and, consequently, the company's rental income. STRW's ability to navigate these challenges will be a key determinant of its success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
35.7%
Sector: 9.4%
+280% VS SCTR
Economic Moat Analysis
Strawberry Fields REIT's economic moat is likely Narrow. While the company operates in a niche market with specialized real estate needs, its competitive advantages are not insurmountable. The primary source of its moat stems from intangible assets, specifically its expertise and relationships within the cannabis industry. Understanding the specific requirements of cannabis cultivation, processing, and retail operations provides STRW with an advantage over general-purpose REITs.
However, the barriers to entry in the cannabis real estate market are not prohibitively high. Other REITs and private investors can acquire the necessary expertise and build relationships with cannabis operators. Furthermore, the regulatory landscape is constantly evolving, which can erode STRW's competitive advantage if it fails to adapt quickly.
The company does not appear to possess significant cost advantages or benefit from efficient scale. Its operating margins are strong, but this is likely due to the high demand for cannabis real estate rather than inherent cost efficiencies. As the market matures and competition intensifies, STRW may face pressure to lower its rental rates, which could compress its margins.
Network effects are not a significant factor in STRW's business model. While strong relationships with cannabis operators are valuable, they do not create a self-reinforcing cycle that strengthens the company's competitive position. Switching costs for tenants are also relatively low, as they can potentially relocate their operations to other properties if they find better terms or locations.
Overall, STRW's narrow moat provides some protection against competition, but it is not a wide moat that guarantees long-term profitability. The company must continue to innovate and adapt to maintain its competitive edge in the rapidly evolving cannabis market. Failure to do so could result in a shrinking moat and declining financial performance.
Financial Health & Profitability
Strawberry Fields REIT exhibits a mixed financial profile. The company's revenue growth has been impressive, with a 35.7% increase year-over-year, significantly outpacing the sector average of 9.3%. This growth is reflected in the quarterly financial history, showing consistent revenue increases from FY2023 to FY2025. Net income has also grown substantially, indicating improved profitability.
STRW's profitability metrics are strong compared to the sector. Its ROE of 62.2% is significantly higher than the sector average of 8.5%, suggesting efficient use of equity. The company's gross margin of 100% and operating margin of 54.9% also demonstrate strong operational efficiency. The net margin of 21.8% is also higher than the sector average of 17.8%.
However, STRW's balance sheet raises concerns. The company's debt-to-equity ratio of 1,573.00 is extremely high compared to the sector average of 115.00. This indicates a high level of financial leverage, which increases the company's vulnerability to economic downturns and interest rate fluctuations. While the current ratio of 1.06 suggests adequate short-term liquidity, the high debt burden remains a significant risk.
The company's EBITDA of $130.53 million is substantial, but the high debt levels result in a relatively low EV/EBITDA multiple of 1.8x, which is lower than the sector average of 3.5x. This suggests that the market is discounting the company's valuation due to its high debt. The absence of free cash flow data makes it difficult to assess the company's ability to generate cash internally to repay its debt.
In summary, STRW's strong revenue growth and profitability are offset by its high debt levels. The company needs to manage its debt effectively to improve its financial health and reduce its vulnerability to external shocks. Investors should closely monitor STRW's debt repayment progress and its ability to generate free cash flow.
Valuation Assessment
Strawberry Fields REIT's valuation presents a mixed picture. The company's P/E ratio of 20.8x is higher than the sector average of 15.5x, suggesting that the stock is relatively expensive compared to its peers. This premium may be justified by the company's higher revenue growth and profitability, but it also reflects the market's expectations for future growth.
The EV/EBITDA multiple of 1.8x is lower than the sector average of 3.5x, which could indicate that the stock is undervalued. However, this lower multiple likely reflects the market's concerns about the company's high debt levels. Investors may be discounting the company's valuation due to the increased risk associated with its financial leverage.
Without free cash flow data, it is difficult to assess the company's intrinsic value using discounted cash flow analysis. However, the high debt levels suggest that a significant portion of the company's cash flow will be used to service its debt, which could limit its ability to invest in future growth opportunities.
Compared to its historical performance, STRW's valuation appears to be relatively stable. The company's revenue and earnings have been growing consistently, which supports its current valuation. However, the high debt levels remain a concern, and any deterioration in the company's financial performance could lead to a significant decline in its stock price.
Overall, STRW's valuation is fair to slightly expensive, considering its growth prospects and financial risks. The company's high P/E ratio suggests that the market has high expectations for its future performance, while its low EV/EBITDA multiple reflects concerns about its debt levels. Investors should carefully weigh these factors before making an investment decision.
Risk & Uncertainty
Strawberry Fields REIT faces several specific risks related to its business model and the cannabis industry. Regulatory risk is a significant concern, as the legal status of cannabis varies across states and is subject to change. Changes in regulations could impact the demand for cannabis real estate and the profitability of STRW's tenants, which could, in turn, affect the company's rental income.
Competition is another key risk. As the cannabis industry matures, more REITs and private investors are entering the market, increasing the supply of cannabis real estate. This could lead to lower rental rates and reduced occupancy rates for STRW's properties. The company must differentiate itself through superior property management and tenant relationships to maintain its competitive edge.
Tenant concentration is also a potential risk. If STRW relies heavily on a few large tenants, the loss of one or more of these tenants could have a significant impact on its revenue and profitability. The company needs to diversify its tenant base to reduce this risk.
The company's high debt levels pose a significant financial risk. High leverage increases the company's vulnerability to economic downturns and interest rate fluctuations. If STRW is unable to generate sufficient cash flow to service its debt, it may be forced to sell assets or seek additional financing, which could dilute existing shareholders.
Bulls Say / Bears Say
The Bull Case
BULL VIEWStrawberry Fields REIT is well-positioned to benefit from the continued growth of the cannabis industry, as increasing legalization drives demand for specialized real estate.
BULL VIEWThe company's high ROE and operating margins demonstrate its efficient use of capital and strong operational performance, justifying a premium valuation.
The Bear Case
BEAR VIEWStrawberry Fields REIT's extremely high debt-to-equity ratio makes it vulnerable to economic downturns and interest rate hikes, posing a significant risk to investors.
BEAR VIEWThe company's relatively high P/E ratio compared to the sector suggests that the stock is overvalued, especially considering its high debt levels and regulatory uncertainties in the cannabis industry.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score STRW and 4,400+ other equities.
Strawberry Fields REIT, Inc. exhibits a 73% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.5%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
100.0%
Sector: 0.0%
Operating Margin
Core business profitability
54.9%
Sector: 21.8%
Net Margin
Bottom-line profitability
21.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+90%
Income Projection audit
A $10,000 investment would generate approximately $472 annually in dividends at the current trailing rate.
