SIMON PROPERTY GROUP INC (SPG) Stock Fundamental Analysis
NYSE:SPG - New York Stock Exchange, Inc. - US8288061091 - REIT - Currency: USD
Taking everything into account, SPG scores 4 out of 10 in our fundamental rating. SPG was compared to 129 industry peers in the Diversified REITs industry. SPG has an excellent profitability rating, but there are concerns on its financial health. SPG has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
SPG had positive earnings in 4 of the past 5 years.
Of the past 5 years SPG 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.36%, SPG belongs to the best of the industry, outperforming 99.21% of the companies in the same industry.
Looking at the Return On Equity, with a value of 90.22%, SPG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.19%, SPG belongs to the best of the industry, outperforming 99.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SPG is above the industry average of 3.11%.
The 3 year average ROIC (6.86%) for SPG is below the current ROIC(8.19%), indicating increased profibility in the last year.
| 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's Profit Margin of 41.43% is amongst the best of the industry. SPG outperforms 92.06% of its industry peers.
SPG's Profit Margin has been stable in the last couple of years.
SPG has a Operating Margin of 51.60%. This is amongst the best in the industry. SPG outperforms 92.06% of its industry peers.
SPG's Operating Margin has been stable in the last couple of years.
The Gross Margin of SPG (82.62%) is better than 82.54% of its industry peers.
In the last couple of years the Gross Margin of SPG has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SPG is still creating some value.
There is no outstanding debt for SPG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SPG has an Altman-Z score of 1.37. 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 (1.37) than 85.71% of its industry peers.
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 92.06% 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.
SPG has a Debt to Equity ratio of 9.37. This is amonst the worse of the industry: SPG underperforms 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.37 | ||
| Debt/FCF | 8.33 | ||
| Altman-Z | 1.37 |
ROIC/WACC1.14
WACC7.21%
2.3 Liquidity
A Current Ratio of 0.76 indicates that SPG may have some problems paying its short term obligations.
SPG has a Current ratio of 0.76. This is in the lower half of the industry: SPG underperforms 69.84% of its industry peers.
A Quick Ratio of 0.76 indicates that SPG may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, SPG is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.01% over the past year.
The Earnings Per Share has been growing slightly by 1.29% on average over the past years.
EPS 1Y (TTM)4.01%
EPS 3Y5.29%
EPS 5Y1.29%
EPS Q2Q%-10.92%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.07%
3.2 Future
SPG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.09% yearly.
SPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
EPS Next Y-9.85%
EPS Next 2Y0.71%
EPS Next 3Y-1.91%
EPS Next 5Y-0.09%
Revenue Next Year3.12%
Revenue Next 2Y3.29%
Revenue Next 3Y4.13%
Revenue Next 5Y3.82%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.32, which means the current valuation is very expensive for SPG.
Based on the Price/Earnings ratio, SPG is valued a bit cheaper than the industry average as 73.02% of the companies are valued more expensively.
SPG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 28.08, which means the current valuation is very expensive for SPG.
80.16% of the companies in the same industry are more expensive than SPG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SPG to the average of the S&P500 Index (22.68), we can say SPG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 28.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPG is valued a bit more expensive than the industry average as 79.37% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPG indicates a somewhat cheap valuation: SPG is cheaper than 74.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.66 | ||
| EV/EBITDA | 19.18 |
4.3 Compensation for Growth
SPG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)19.66
EPS Next 2Y0.71%
EPS Next 3Y-1.91%
5. Dividend
5.1 Amount
SPG has a Yearly Dividend Yield of 4.51%, which is a nice return.
Compared to an average industry Dividend Yield of 18.48, 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
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.
The Dividend Rate of SPG has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP105.44%
EPS Next 2Y0.71%
EPS Next 3Y-1.91%
183.8
-2.91 (-1.56%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.08%
Inst Owner Change0.08%
Ins Owners0.16%
Ins Owner Change4.02%
Market Cap59.97B
Analysts73.91
Price Target191.54 (4.21%)
Short Float %1.58%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend7.48
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)1.97%
PT rev (3m)11.2%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)7.46%
EPS NY rev (3m)9.68%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 28.08 | ||
| P/S | 10.15 | ||
| P/FCF | 19.66 | ||
| P/OCF | 15.92 | ||
| P/B | 22.1 | ||
| P/tB | 22.1 | ||
| EV/EBITDA | 19.18 |
EPS(TTM)7.26
EY3.95%
EPS(NY)6.54
Fwd EY3.56%
FCF(TTM)9.35
FCFY5.09%
OCF(TTM)11.54
OCFY6.28%
SpS18.11
BVpS8.32
TBVpS8.32
PEG (NY)N/A
PEG (5Y)19.66
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 | 1.37 |
F-Score8
WACC7.21%
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)4.01%
EPS 3Y5.29%
EPS 5Y1.29%
EPS Q2Q%-10.92%
EPS Next Y-9.85%
EPS Next 2Y0.71%
EPS Next 3Y-1.91%
EPS Next 5Y-0.09%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.07%
Revenue Next Year3.12%
Revenue Next 2Y3.29%
Revenue Next 3Y4.13%
Revenue Next 5Y3.82%
EBIT growth 1Y12.97%
EBIT growth 3Y12.49%
EBIT growth 5Y-0.83%
EBIT Next Year77.28%
EBIT Next 3Y23.48%
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%