SIMON PROPERTY GROUP INC (SPG) Stock Fundamental Analysis
NYSE:SPG - New York Stock Exchange, Inc. - US8288061091 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to SPG. SPG was compared to 130 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SPG had positive earnings in the past year.
SPG had a positive operating cash flow in the past year.
Each year in the past 5 years SPG has been profitable.
Each year in the past 5 years SPG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SPG (6.31%) is better than 97.67% of its industry peers.
SPG has a better Return On Equity (78.66%) than 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.
SPG had an Average Return On Invested Capital over the past 3 years of 7.62%. This is above the industry average of 3.16%.
The last Return On Invested Capital (8.47%) for SPG is above the 3 year average (7.62%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 34.19%, SPG belongs to the best of the industry, outperforming 89.15% of the companies in the same industry.
SPG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 51.47%, SPG belongs to the top of the industry, outperforming 92.25% of the companies in the same industry.
SPG's Operating Margin has been stable in the last couple of years.
SPG's Gross Margin of 82.37% is amongst the best of the industry. SPG outperforms 82.17% 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 | 51.47% | ||
| 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.
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
The debt/assets ratio for SPG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that SPG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SPG (1.21) is better than 82.95% of its industry peers.
SPG has a debt to FCF ratio of 8.13. This is a slightly negative value and a sign of low solvency as SPG would need 8.13 years to pay back of all of its debts.
SPG's Debt to FCF ratio of 8.13 is amongst the best of the industry. SPG outperforms 95.35% of its industry peers.
A Debt/Equity ratio of 9.50 is on the high side and indicates that SPG has dependencies on debt financing.
SPG's Debt to Equity ratio of 9.50 is on the low side compared to the rest of the industry. SPG is outperformed by 94.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.5 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 1.21 |
ROIC/WACC1.2
WACC7.07%
2.3 Liquidity
SPG has a Current Ratio of 0.58. 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 Current ratio (0.58) than 73.64% of its industry peers.
SPG has a Quick Ratio of 0.58. This is a bad value and indicates that SPG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SPG (0.58) is worse than 71.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
SPG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.00%.
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 4.24%.
The Revenue has been growing slightly by 0.71% on average over the past years.
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
SPG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.74% yearly.
The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y-10.55%
EPS Next 2Y-1.68%
EPS Next 3Y-1.82%
EPS Next 5Y-0.74%
Revenue Next Year7.33%
Revenue Next 2Y5.34%
Revenue Next 3Y4.94%
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
With a Price/Earnings ratio of 25.76, SPG can be considered very expensive at the moment.
74.42% of the companies in the same industry are more expensive than SPG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SPG to the average of the S&P500 Index (27.41), we can say SPG is valued inline with the index average.
A Price/Forward Earnings ratio of 23.05 indicates a rather expensive valuation of SPG.
86.05% 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 valuation a bit cheaper than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 23.05 |
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 72.87% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPG indicates a rather cheap valuation: SPG is cheaper than 81.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.33 | ||
| EV/EBITDA | 17.02 |
4.3 Compensation for Growth
The excellent profitability rating of SPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)20
EPS Next 2Y-1.68%
EPS Next 3Y-1.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.14%, SPG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.44, SPG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, SPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
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
SPG pays out 131.55% of its income as dividend. 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-1.68%
EPS Next 3Y-1.82%
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 | 5.14% |
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)-0.7%
PT rev (3m)-4.33%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)3.1%
EPS NY rev (1m)1.63%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)2.2%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)1.5%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 23.05 | ||
| P/S | 8.81 | ||
| P/FCF | 17.33 | ||
| P/OCF | 13.65 | ||
| P/B | 20.26 | ||
| P/tB | 20.26 | ||
| EV/EBITDA | 17.02 |
EPS(TTM)6.28
EY3.88%
EPS(NY)7.02
Fwd EY4.34%
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 | 1.21 |
F-Score6
WACC7.07%
ROIC/WACC1.2
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-10.55%
EPS Next 2Y-1.68%
EPS Next 3Y-1.82%
EPS Next 5Y-0.74%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.24%
Revenue growth 5Y0.71%
Sales Q2Q%4.97%
Revenue Next Year7.33%
Revenue Next 2Y5.34%
Revenue Next 3Y4.94%
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%