SIMON PROPERTY GROUP INC (SPG) Stock Fundamental Analysis
NYSE:SPG - New York Stock Exchange, Inc. - US8288061091 - REIT - Currency: USD
SPG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. While SPG belongs to the best of the industry regarding profitability, 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.
SPG had a positive operating cash flow in the past year.
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
The Return On Assets of SPG (6.31%) is better than 97.67% of its industry peers.
SPG has a Return On Equity of 78.66%. This is amongst the best in the industry. SPG outperforms 99.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.47%, SPG belongs to the top of the industry, outperforming 99.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SPG is above the industry average of 3.15%.
The 3 year average ROIC (7.62%) for SPG is below the current ROIC(8.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 78.66% | ||
| ROIC | 8.47% |
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 34.19%, SPG belongs to the top of the industry, outperforming 89.15% of the companies in the same industry.
In the last couple of years the Profit Margin of SPG has grown nicely.
SPG has a better Operating Margin (51.47%) than 92.25% of its industry peers.
SPG's Operating Margin has been stable in the last couple of years.
SPG has a better Gross Margin (82.37%) than 82.17% of its industry peers.
SPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.47% | ||
| PM (TTM) | 34.19% | ||
| GM | 82.37% |
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.
The debt/assets ratio for SPG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that SPG is in the distress zone and has some risk of bankruptcy.
SPG has a Altman-Z score of 1.22. This is amongst the best in the industry. SPG outperforms 83.72% of its industry peers.
The Debt to FCF ratio of SPG is 8.13, which is on the high side as it means it would take SPG, 8.13 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 8.13, SPG belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
SPG has a Debt/Equity ratio of 9.50. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 9.50, SPG is doing worse than 94.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.5 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.21
WACC7.01%
2.3 Liquidity
A Current Ratio of 0.58 indicates that SPG may have some problems paying its short term obligations.
SPG's Current ratio of 0.58 is on the low side compared to the rest of the industry. SPG is outperformed by 73.64% of its industry peers.
A Quick Ratio of 0.58 indicates that SPG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.58, SPG is doing worse than 71.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for SPG have decreased strongly by -20.00% in the last year.
SPG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.29% yearly.
The Revenue has been growing slightly by 4.24% in the past year.
Measured over the past years, SPG shows a small growth in Revenue. The Revenue has been growing by 0.71% on average per year.
EPS 1Y (TTM)-20%
EPS 3Y5.29%
EPS 5Y1.29%
EPS Q2Q%-43.56%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.24%
Revenue growth 5Y0.71%
Sales Q2Q%4.97%
3.2 Future
Based on estimates for the next years, SPG will show a decrease in Earnings Per Share. The EPS will decrease by -0.74% on average per year.
Based on estimates for the next years, SPG will show a small growth in Revenue. The Revenue will grow by 3.82% on average per year.
EPS Next Y-11.1%
EPS Next 2Y-2.04%
EPS Next 3Y-3.25%
EPS Next 5Y-0.74%
Revenue Next Year7.52%
Revenue Next 2Y5.33%
Revenue Next 3Y4.78%
Revenue Next 5Y3.82%
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
SPG is valuated quite expensively with a Price/Earnings ratio of 25.76.
Based on the Price/Earnings ratio, SPG is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
SPG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.22, which indicates a rather expensive current valuation of SPG.
82.95% of the companies in the same industry are more expensive than SPG, based on the Price/Forward Earnings ratio.
SPG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 23.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPG indicates a slightly more expensive valuation: SPG is more expensive than 74.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SPG is valued cheaper than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.33 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
The excellent profitability rating of SPG may justify a higher PE ratio.
SPG's earnings are expected to decrease with -3.25% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)20
EPS Next 2Y-2.04%
EPS Next 3Y-3.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.04%, SPG is a good candidate for dividend investing.
SPG's Dividend Yield is comparable with the industry average which is at 6.43.
Compared to an average S&P500 Dividend Yield of 2.37, SPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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
131.55% 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.
DP131.55%
EPS Next 2Y-2.04%
EPS Next 3Y-3.25%
161.75
-1.7 (-1.04%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.07%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change1.95%
Market Cap52.80B
Analysts76.67
Price Target188.28 (16.4%)
Short Float %1.1%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
Yearly Dividend8.12
Dividend Growth(5Y)-0.48%
DP131.55%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.5%
Min EPS beat(2)-9.93%
Max EPS beat(2)4.92%
EPS beat(4)1
Avg EPS beat(4)-3.44%
Min EPS beat(4)-9.93%
Max EPS beat(4)4.92%
EPS beat(8)4
Avg EPS beat(8)10.22%
EPS beat(12)7
Avg EPS beat(12)9.81%
EPS beat(16)10
Avg EPS beat(16)14.82%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-0.33%
Max Revenue beat(2)1.38%
Revenue beat(4)3
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-0.33%
Max Revenue beat(4)1.38%
Revenue beat(8)4
Avg Revenue beat(8)0.14%
Revenue beat(12)7
Avg Revenue beat(12)1.67%
Revenue beat(16)11
Avg Revenue beat(16)3.37%
PT rev (1m)-2.01%
PT rev (3m)-4.33%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)3.86%
EPS NY rev (1m)1%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)2.2%
Revenue NQ rev (3m)3.15%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 23.22 | ||
| P/S | 8.81 | ||
| P/FCF | 17.33 | ||
| P/OCF | 13.65 | ||
| P/B | 20.26 | ||
| P/tB | 20.26 | ||
| EV/EBITDA | 17.14 |
EPS(TTM)6.28
EY3.88%
EPS(NY)6.97
Fwd EY4.31%
FCF(TTM)9.33
FCFY5.77%
OCF(TTM)11.85
OCFY7.33%
SpS18.36
BVpS7.98
TBVpS7.98
PEG (NY)N/A
PEG (5Y)20
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 78.66% | ||
| ROCE | 10.73% | ||
| ROIC | 8.47% | ||
| ROICexc | 8.9% | ||
| ROICexgc | 8.9% | ||
| OM | 51.47% | ||
| PM (TTM) | 34.19% | ||
| GM | 82.37% | ||
| FCFM | 50.81% |
ROA(3y)6.81%
ROA(5y)6.05%
ROE(3y)74.65%
ROE(5y)65.46%
ROIC(3y)7.62%
ROIC(5y)6.84%
ROICexc(3y)7.91%
ROICexc(5y)7.07%
ROICexgc(3y)7.92%
ROICexgc(5y)7.08%
ROCE(3y)9.64%
ROCE(5y)8.65%
ROICexcg growth 3Y12.01%
ROICexcg growth 5Y1.19%
ROICexc growth 3Y12.04%
ROICexc growth 5Y1.24%
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%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.5 | ||
| Debt/FCF | 8.13 | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 59.16% | ||
| Cap/Sales | 13.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.43% | ||
| Profit Quality | 148.62% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.22 |
F-Score6
WACC7.01%
ROIC/WACC1.21
Cap/Depr(3y)55.12%
Cap/Depr(5y)48.18%
Cap/Sales(3y)12.99%
Cap/Sales(5y)11.96%
Profit Quality(3y)137.57%
Profit Quality(5y)143.45%
High Growth Momentum
Growth
EPS 1Y (TTM)-20%
EPS 3Y5.29%
EPS 5Y1.29%
EPS Q2Q%-43.56%
EPS Next Y-11.1%
EPS Next 2Y-2.04%
EPS Next 3Y-3.25%
EPS Next 5Y-0.74%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.24%
Revenue growth 5Y0.71%
Sales Q2Q%4.97%
Revenue Next Year7.52%
Revenue Next 2Y5.33%
Revenue Next 3Y4.78%
Revenue Next 5Y3.82%
EBIT growth 1Y7.15%
EBIT growth 3Y8.62%
EBIT growth 5Y1.24%
EBIT Next Year58.03%
EBIT Next 3Y18.55%
EBIT Next 5Y12.93%
FCF growth 1Y-3.06%
FCF growth 3Y-0.54%
FCF growth 5Y0.85%
OCF growth 1Y1.72%
OCF growth 3Y1.6%
OCF growth 5Y0.04%