SIMON PROPERTY GROUP INC (SPG)
US8288061091 - REIT
We assign a fundamental rating of 5 out of 10 to SPG. SPG was compared to 130 industry peers in the Diversified REITs industry. SPG has an excellent profitability rating, but there are concerns on its financial health. SPG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SPG was profitable.
SPG had a positive operating cash flow in the past year.
In the past 5 years SPG has always been profitable.
SPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.36%, SPG belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
The Return On Equity of SPG (90.22%) is better than 100.00% of its industry peers.
SPG's Return On Invested Capital of 8.19% is amongst the best of the industry. SPG outperforms 99.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SPG is above the industry average of 3.08%.
The last Return On Invested Capital (8.19%) for SPG is above the 3 year average (6.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.36% | ||
| ROE | 90.22% | ||
| ROIC | 8.19% |
ROA(3y)6.59%
ROA(5y)5.94%
ROE(3y)70.1%
ROE(5y)65.97%
ROIC(3y)6.86%
ROIC(5y)6.78%
1.3 Margins
SPG has a better Profit Margin (41.43%) than 92.19% of its industry peers.
In the last couple of years the Profit Margin of SPG has remained more or less at the same level.
SPG has a better Operating Margin (51.60%) than 92.19% of its industry peers.
In the last couple of years the Operating Margin of SPG has remained more or less at the same level.
SPG has a better Gross Margin (82.62%) than 82.81% of its industry peers.
SPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.6% | ||
| PM (TTM) | 41.43% | ||
| GM | 82.62% |
OM growth 3Y5.04%
OM growth 5Y-0.88%
PM growth 3Y18.72%
PM growth 5Y-1.37%
GM growth 3Y0.44%
GM growth 5Y-0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SPG is creating some value.
Compared to 1 year ago, SPG has less shares outstanding
SPG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SPG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that SPG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, SPG belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
SPG has a debt to FCF ratio of 8.33. This is a slightly negative value and a sign of low solvency as SPG would need 8.33 years to pay back of all of its debts.
SPG has a better Debt to FCF ratio (8.33) than 92.19% of its industry peers.
A Debt/Equity ratio of 9.37 is on the high side and indicates that SPG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 9.37, SPG is doing worse than 94.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.37 | ||
| Debt/FCF | 8.33 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.14
WACC7.16%
2.3 Liquidity
SPG has a Current Ratio of 0.76. This is a bad value and indicates that SPG is not financially healthy enough and could expect problems in meeting its short term obligations.
SPG has a worse Current ratio (0.76) than 73.44% of its industry peers.
A Quick Ratio of 0.76 indicates that SPG may have some problems paying its short term obligations.
SPG's Quick ratio of 0.76 is on the low side compared to the rest of the industry. SPG is outperformed by 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
SPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.26%, which is quite good.
SPG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.40% yearly.
SPG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.83%.
SPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.05% yearly.
EPS 1Y (TTM)11.26%
EPS 3Y21.83%
EPS 5Y-1.4%
EPS Q2Q%-19.78%
Revenue 1Y (TTM)6.83%
Revenue growth 3Y7.09%
Revenue growth 5Y0.05%
Sales Q2Q%3.16%
3.2 Future
Based on estimates for the next years, SPG will show a small growth in Earnings Per Share. The EPS will grow by 0.27% on average per year.
The Revenue is expected to grow by 3.88% on average over the next years.
EPS Next Y-5.22%
EPS Next 2Y-2.92%
EPS Next 3Y-1.62%
EPS Next 5Y0.27%
Revenue Next Year5.55%
Revenue Next 2Y4.12%
Revenue Next 3Y3.68%
Revenue Next 5Y3.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.85, the valuation of SPG can be described as rather expensive.
78.13% of the companies in the same industry are more expensive than SPG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, SPG is valued at the same level.
SPG is valuated quite expensively with a Price/Forward Earnings ratio of 26.09.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPG indicates a rather cheap valuation: SPG is cheaper than 82.81% of the companies listed in the same industry.
SPG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.85 | ||
| Fwd PE | 26.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPG is valued a bit more expensive than the industry average as 77.34% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, SPG is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.36 | ||
| EV/EBITDA | 17.89 |
4.3 Compensation for Growth
SPG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.92%
EPS Next 3Y-1.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.74%, SPG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 15.68, SPG has a dividend in line with its industry peers.
SPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
The dividend of SPG decreases each year by -1.11%.
SPG has been paying a dividend for at least 10 years, so it has a reliable track record.
SPG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
105.44% of the earnings are spent on dividend by SPG. This is not a sustainable payout ratio.
DP105.44%
EPS Next 2Y-2.92%
EPS Next 3Y-1.62%
SIMON PROPERTY GROUP INC
NYSE:SPG (12/20/2024, 8:04:00 PM)
After market: 171.609 0 (0%)171.61
+2.35 (+1.39%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.25%
Inst Owner Change1.84%
Ins Owners0.62%
Ins Owner Change4.14%
Market Cap55.99B
Analysts72.73
Price Target180.44 (5.15%)
Short Float %1.51%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Dividend Growth(5Y)-1.11%
DP105.44%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.39%
Min EPS beat(2)-8.04%
Max EPS beat(2)-0.73%
EPS beat(4)2
Avg EPS beat(4)18.56%
Min EPS beat(4)-8.04%
Max EPS beat(4)61.43%
EPS beat(8)4
Avg EPS beat(8)13.07%
EPS beat(12)7
Avg EPS beat(12)10.62%
EPS beat(16)10
Avg EPS beat(16)17.45%
Revenue beat(2)2
Avg Revenue beat(2)0.06%
Min Revenue beat(2)0.06%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)0.06%
Revenue beat(8)4
Avg Revenue beat(8)1.08%
Revenue beat(12)8
Avg Revenue beat(12)2.79%
Revenue beat(16)12
Avg Revenue beat(16)4.06%
PT rev (1m)4.76%
PT rev (3m)8.77%
EPS NQ rev (1m)-4.38%
EPS NQ rev (3m)3.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.37%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.85 | ||
| Fwd PE | 26.09 | ||
| P/S | 9.48 | ||
| P/FCF | 18.36 | ||
| P/OCF | 14.87 | ||
| P/B | 20.64 | ||
| P/tB | 20.64 | ||
| EV/EBITDA | 17.89 |
EPS(TTM)7.51
EY4.38%
EPS(NY)6.58
Fwd EY3.83%
FCF(TTM)9.35
FCFY5.45%
OCF(TTM)11.54
OCFY6.73%
SpS18.11
BVpS8.32
TBVpS8.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.36% | ||
| ROE | 90.22% | ||
| ROCE | 10.37% | ||
| ROIC | 8.19% | ||
| ROICexc | 8.85% | ||
| ROICexgc | 8.85% | ||
| OM | 51.6% | ||
| PM (TTM) | 41.43% | ||
| GM | 82.62% | ||
| FCFM | 51.61% |
ROA(3y)6.59%
ROA(5y)5.94%
ROE(3y)70.1%
ROE(5y)65.97%
ROIC(3y)6.86%
ROIC(5y)6.78%
ROICexc(3y)7.04%
ROICexc(5y)6.96%
ROICexgc(3y)7.05%
ROICexgc(5y)6.98%
ROCE(3y)8.68%
ROCE(5y)8.58%
ROICexcg growth 3Y13.37%
ROICexcg growth 5Y-2.21%
ROICexc growth 3Y13.4%
ROICexc growth 5Y-2.12%
OM growth 3Y5.04%
OM growth 5Y-0.88%
PM growth 3Y18.72%
PM growth 5Y-1.37%
GM growth 3Y0.44%
GM growth 5Y-0.08%
F-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.37 | ||
| Debt/FCF | 8.33 | ||
| Debt/EBITDA | 5.79 | ||
| Cap/Depr | 53.51% | ||
| Cap/Sales | 12.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.84% | ||
| Profit Quality | 124.6% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.26 |
F-Score8
WACC7.16%
ROIC/WACC1.14
Cap/Depr(3y)49.87%
Cap/Depr(5y)49.63%
Cap/Sales(3y)12.21%
Cap/Sales(5y)12.47%
Profit Quality(3y)140.65%
Profit Quality(5y)145.56%
High Growth Momentum
Growth
EPS 1Y (TTM)11.26%
EPS 3Y21.83%
EPS 5Y-1.4%
EPS Q2Q%-19.78%
EPS Next Y-5.22%
EPS Next 2Y-2.92%
EPS Next 3Y-1.62%
EPS Next 5Y0.27%
Revenue 1Y (TTM)6.83%
Revenue growth 3Y7.09%
Revenue growth 5Y0.05%
Sales Q2Q%3.16%
Revenue Next Year5.55%
Revenue Next 2Y4.12%
Revenue Next 3Y3.68%
Revenue Next 5Y3.88%
EBIT growth 1Y12.97%
EBIT growth 3Y12.49%
EBIT growth 5Y-0.83%
EBIT Next Year75.6%
EBIT Next 3Y23.51%
EBIT Next 5Y15.9%
FCF growth 1Y-3.04%
FCF growth 3Y19.41%
FCF growth 5Y1.11%
OCF growth 1Y1.25%
OCF growth 3Y19.1%
OCF growth 5Y0.94%