Whitestone REIT (WSR)
Valuation Overview•Is Whitestone REIT Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Moderate quality score of 64/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street sentiment is generally neutral. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
WSR demonstrates strong business quality with robust profitability and healthy margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company exhibits steady, low-single-digit revenue growth paired with robust earnings compounding (10.2% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 33.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $41.9M | +3.4% | +4.6% | +5.4% | +5.6% | |
| EBITDA | $23.2M | — | +4.2% | — | — | |
| Net Income | $4.1M | +35.3% | +12.3% | — | +22.2% | |
| EPS (Diluted) | $0.08 | +31.9% | +10.2% | +46.7% | +14.7% | |
| Free Cash Flow | $3.6M | -12.8% | +4.5% | +3.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 56.8% | 69.4% | 69.2% | 68.7% |
| Operating Margin | 33.0% | 33.0% | 32.1% | 32.1% |
| Net Margin | 30.5% | 22.6% | 20.5% | 15.9% |
| FCF Margin | 31.0% | 33.7% | 34.4% | 15.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.09 | $0.27 | +200.0% | ||
| Q1'26 | $0.12 | $0.28 | +136.7% | ||
| Q4'25 | $0.26 | $0.26 | +0.0% | ||
| Q3'25 | $0.25 | $0.26 | +4.0% | ||
| Q2'25 | $0.24 | $0.25 | +4.2% | ||
| Q1'25 | $0.11 | $0.28 | +154.5% | ||
| Q4'24 | $0.26 | $0.25 | -3.8% | ||
| Q3'24 | $0.25 | $0.24 | -4.0% |
Total return is +55.7% (1Y), outperforming the benchmark by +34.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +39.4% | +32.0% | — |
| 1Y | +55.7% | +34.9% | +4.4% |
| 3YCAGR | +29.3% | +10.4% | +16.4% |
| 5YCAGR | +21.0% | +9.6% | +30.0% |
| 10YCAGR | +5.8% | -7.9% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Whitestone REIT (WSR) valuation, health, and returns.
Based on peer relative multiples, Whitestone REIT appears Fair versus peers compared to industry peers.
Whitestone REIT has multiple valuation anchors: Peer Relative Fair Value: $19.30 | Wall Street Analyst Target: $18.25 (implying -3.8% upside). A convergence of these signals offers higher conviction.
Whitestone REIT displays good financial health with a composite quality score of 64/100, supported by a Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 3.7%.
Whitestone REIT does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Whitestone REIT's current growth trajectory is Stable. The company achieved +3.4% 1Y revenue growth and +31.9% 1Y EPS growth, compared to its 3Y revenue CAGR of +4.6%.
Wall Street consensus is Hold based on 16 analysts, beating EPS expectations in 58% of recent quarters with a 2-quarter streak. The consensus price target represents a -3.8% change from current levels.
Investment risks for Whitestone REIT include: -13.1% 1-year max drawdown. Volatility risk is characterized by a beta of 0.17x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.