SIMON PROPERTY GROUP INC (SPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPG - US8288061091 - REIT
183.76 USD
-0.8 (-0.43%)
183.76 USD
0 (0%)
Overall SPG gets a fundamental rating of 5 out of 10. We evaluated SPG against 124 industry peers in the Diversified REITs industry. SPG scores excellent on profitability, but there are concerns on its financial health. SPG has a valuation in line with the averages, 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
- With an excellent Return On Assets value of 6.68%, SPG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- SPG's Return On Equity of 95.47% is amongst the best of the industry. SPG outperforms 100.00% of its industry peers.
- With an excellent Return On Invested Capital value of 8.31%, SPG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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 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
- Looking at the Profit Margin, with a value of 36.44%, SPG belongs to the top 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.
- SPG's Operating Margin of 50.70% is amongst the best of the industry. SPG outperforms 92.74% of its industry peers.
- SPG's Operating Margin has been stable in the last couple of years.
- SPG's Gross Margin of 81.99% is amongst the best of the industry. SPG outperforms 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.
- The number of shares outstanding for SPG remains at a similar level compared to 1 year ago.
- SPG has more shares outstanding than it did 5 years ago.
- SPG has a better debt/assets ratio than last year.
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.
- The Altman-Z score of SPG (1.30) is better than 86.29% of its industry peers.
- SPG has a debt to FCF ratio of 8.26. This is a slightly negative value and a sign of low solvency as SPG would need 8.26 years to pay back of all of its debts.
- SPG's Debt to FCF ratio of 8.26 is amongst the best of the industry. SPG outperforms 94.35% of its industry peers.
- A Debt/Equity ratio of 10.98 is on the high side and indicates that SPG has dependencies on debt financing.
- SPG has a Debt to Equity ratio of 10.98. This is amonst the worse of the industry: SPG underperforms 93.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.98 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.17
WACC7.1%
2.3 Liquidity
- SPG has a Current 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's Current ratio of 0.60 is on the low side compared to the rest of the industry. SPG is outperformed by 75.00% of its industry peers.
- A Quick Ratio of 0.60 indicates that SPG may have some problems paying its short term obligations.
- SPG's Quick ratio of 0.60 is on the low side compared to the rest of the industry. SPG is outperformed by 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The earnings per share for SPG have decreased by -8.52% in the last year.
- 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%.
- The Revenue has been growing slightly by 0.71% on average over the past years.
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.
- 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.
- 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 26.75, the valuation of SPG can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of SPG indicates a somewhat cheap valuation: SPG is cheaper than 68.55% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, SPG is valued at the same level.
- SPG is valuated quite expensively with a Price/Forward Earnings ratio of 26.18.
- 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 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.75 | ||
| Fwd PE | 26.18 |
4.2 Price Multiples
- 78.23% of the companies in the same industry are cheaper than SPG, based on the Enterprise Value to EBITDA ratio.
- 78.23% of the companies in the same industry are more expensive than SPG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.22 | ||
| EV/EBITDA | 18.45 |
4.3 Compensation for Growth
- SPG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)20.77
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 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
- 123.15% of the earnings are spent on dividend by SPG. This is not a sustainable payout ratio.
- SPG's earnings and Dividend Rate are 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.