SIMON PROPERTY GROUP INC (SPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPG - US8288061091 - REIT
183.6 USD
-1.73 (-0.93%)
SPG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. SPG scores excellent on profitability, but there are concerns on its financial health. SPG is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- SPG had positive earnings in the past year.
- In the past year SPG had a positive cash flow from operations.
- In the past 5 years SPG has always been profitable.
- In the past 5 years SPG always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.68%, SPG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 95.47%, SPG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- SPG has a better Return On Invested Capital (8.31%) than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SPG is above the industry average of 3.05%.
- The 3 year average ROIC (7.62%) for SPG is below the current ROIC(8.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 95.47% | ||
| ROIC | 8.31% |
ROA(3y)6.81%
ROA(5y)6.05%
ROE(3y)74.65%
ROE(5y)65.46%
ROIC(3y)7.62%
ROIC(5y)6.84%
1.3 Margins
- With an excellent Profit Margin value of 36.44%, SPG belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
- SPG's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 50.70%, SPG belongs to the best of the industry, outperforming 92.74% of the companies in the same industry.
- In the last couple of years the Operating Margin of SPG has remained more or less at the same level.
- The Gross Margin of SPG (81.99%) is better than 82.26% of its industry peers.
- SPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.7% | ||
| PM (TTM) | 36.44% | ||
| GM | 81.99% |
OM growth 3Y3.22%
OM growth 5Y0.52%
PM growth 3Y-3.3%
PM growth 5Y1.72%
GM growth 3Y0.61%
GM growth 5Y0.06%
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.
- SPG has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SPG has more shares outstanding
- Compared to 1 year ago, SPG has an improved debt to assets ratio.
2.2 Solvency
- SPG has an Altman-Z score of 1.31. This is a bad value and indicates that SPG is not financially healthy and even has some risk of bankruptcy.
- SPG has a better Altman-Z score (1.31) than 86.29% of its industry peers.
- The Debt to FCF ratio of SPG is 8.26, which is on the high side as it means it would take SPG, 8.26 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of SPG (8.26) is better than 94.35% of its industry peers.
- SPG has a Debt/Equity ratio of 10.98. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of SPG (10.98) is worse than 93.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.98 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 1.31 |
ROIC/WACC1.17
WACC7.11%
2.3 Liquidity
- A Current Ratio of 0.60 indicates that SPG may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.60, SPG is doing worse than 75.00% of the companies in the same industry.
- A Quick Ratio of 0.60 indicates that SPG may have some problems paying its short term obligations.
- SPG has a worse Quick ratio (0.60) than 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- SPG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.52%.
- SPG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.29% yearly.
- Looking at the last year, SPG shows a small growth in Revenue. The Revenue has grown by 4.17% in the last year.
- SPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.71% yearly.
EPS 1Y (TTM)-8.52%
EPS 3Y5.29%
EPS 5Y1.29%
EPS Q2Q%27.4%
Revenue 1Y (TTM)4.17%
Revenue growth 3Y5.24%
Revenue growth 5Y0.71%
Sales Q2Q%8.44%
3.2 Future
- SPG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.02% yearly.
- SPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
EPS Next Y-7.96%
EPS Next 2Y-1.67%
EPS Next 3Y-0.21%
EPS Next 5Y-0.02%
Revenue Next Year6.54%
Revenue Next 2Y5.72%
Revenue Next 3Y5.08%
Revenue Next 5Y4.57%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- With a Price/Earnings ratio of 26.72, SPG can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, SPG is valued a bit cheaper than the industry average as 69.35% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of SPG to the average of the S&P500 Index (27.25), we can say SPG is valued inline with the index average.
- With a Price/Forward Earnings ratio of 26.16, SPG can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, SPG is valued cheaply inside the industry as 83.06% of the companies are valued more expensively.
- SPG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 26.16 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPG is valued a bit more expensive than 78.23% of the companies in the same industry.
- SPG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPG is cheaper than 78.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.21 | ||
| EV/EBITDA | 18.51 |
4.3 Compensation for Growth
- The excellent profitability rating of SPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)20.75
EPS Next 2Y-1.67%
EPS Next 3Y-0.21%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.75%, SPG is a good candidate for dividend investing.
- SPG's Dividend Yield is comparable with the industry average which is at 6.82.
- SPG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
- The dividend of SPG decreases each year by -0.48%.
- 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)-0.48%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 123.15% of the earnings are spent on dividend by SPG. This is not a sustainable payout ratio.
- The Dividend Rate of SPG has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP123.15%
EPS Next 2Y-1.67%
EPS Next 3Y-0.21%
SIMON PROPERTY GROUP INC / SPG FAQ
Can you provide the ChartMill fundamental rating for SIMON PROPERTY GROUP INC?
ChartMill assigns a fundamental rating of 5 / 10 to SPG.
Can you provide the valuation status for SIMON PROPERTY GROUP INC?
ChartMill assigns a valuation rating of 4 / 10 to SIMON PROPERTY GROUP INC (SPG). This can be considered as Fairly Valued.
What is the profitability of SPG stock?
SIMON PROPERTY GROUP INC (SPG) has a profitability rating of 9 / 10.
Can you provide the financial health for SPG stock?
The financial health rating of SIMON PROPERTY GROUP INC (SPG) is 3 / 10.
Can you provide the expected EPS growth for SPG stock?
The Earnings per Share (EPS) of SIMON PROPERTY GROUP INC (SPG) is expected to decline by -7.96% in the next year.