SIMON PROPERTY GROUP INC (SPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPG - US8288061091 - REIT
184.73 USD
-0.37 (-0.2%)
184.73 USD
0 (0%)
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
- In the past year SPG was profitable.
- In the past year SPG had a positive cash flow from operations.
- 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
- SPG has a better Return On Assets (6.68%) than 100.00% of its industry peers.
- SPG has a Return On Equity of 95.47%. This is amongst the best in the industry. SPG outperforms 100.00% of its industry peers.
- SPG has a Return On Invested Capital of 8.31%. This is amongst the best in the industry. SPG outperforms 100.00% of its industry peers.
- SPG had an Average Return On Invested Capital over the past 3 years of 7.62%. This is above the industry average of 3.05%.
- The last Return On Invested Capital (8.31%) for SPG is above the 3 year average (7.62%), which is a sign of increasing profitability.
| 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
- SPG has a Profit Margin of 36.44%. This is amongst the best in the industry. SPG outperforms 90.40% of its industry peers.
- SPG's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 50.70%, SPG belongs to the top of the industry, outperforming 92.80% 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.
- SPG's Gross Margin of 81.99% is amongst the best of the industry. SPG outperforms 82.40% 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
- SPG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- SPG has about the same amout of shares outstanding than it did 1 year ago.
- SPG has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SPG has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.30, 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 1.30, SPG belongs to the top of the industry, outperforming 86.40% of the companies in the same industry.
- 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.
- SPG's Debt to FCF ratio of 8.26 is amongst the best of the industry. SPG outperforms 94.40% 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.
- Looking at the Debt to Equity ratio, with a value of 10.98, SPG is doing worse than 93.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.98 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 1.3 |
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.
- SPG has a worse Current ratio (0.60) than 75.20% of its industry peers.
- SPG has a Quick Ratio of 0.60. 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 Quick ratio (0.60) than 74.40% 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%.
- The Earnings Per Share has been growing slightly by 1.29% on average over the past years.
- SPG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.17%.
- 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
- Based on estimates for the next years, SPG will show a decrease in Earnings Per Share. The EPS will decrease by -0.02% on average per year.
- The Revenue is expected to grow by 4.57% on average over the next years.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 26.89, SPG can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, SPG is valued a bit cheaper than 68.80% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. SPG is around the same levels.
- With a Price/Forward Earnings ratio of 26.32, SPG can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, SPG is valued cheaply inside the industry as 83.20% of the companies are valued more expensively.
- SPG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 26.32 |
4.2 Price Multiples
- SPG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SPG is more expensive than 78.40% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPG indicates a somewhat cheap valuation: SPG is cheaper than 77.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.32 | ||
| EV/EBITDA | 18.46 |
4.3 Compensation for Growth
- The excellent profitability rating of SPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)20.88
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.
- Compared to an average industry Dividend Yield of 6.82, SPG has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, SPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
- The dividend of SPG decreases each year by -0.48%.
- SPG has paid a dividend for at least 10 years, which is 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
- SPG pays out 123.15% of its income as dividend. 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.