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 5 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 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
Looking at the Return On Assets, with a value of 6.31%, SPG belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
With an excellent Return On Equity value of 78.66%, SPG belongs to the best of the industry, outperforming 99.22% of the companies in the same industry.
SPG's Return On Invested Capital of 8.47% is amongst the best of the industry. SPG outperforms 99.22% 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 3.15%.
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
SPG has a better Profit Margin (34.19%) than 89.15% of its industry peers.
In the last couple of years the Profit Margin of SPG has grown nicely.
With an excellent Operating Margin value of 51.47%, SPG belongs to the best 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.
With an excellent Gross Margin value of 82.37%, SPG belongs to the best of the industry, outperforming 82.95% of the companies in the same industry.
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.
Compared to 1 year ago, SPG has about the same amount of shares outstanding.
The number of shares outstanding for SPG has been increased compared to 5 years ago.
Compared to 1 year ago, SPG has an improved debt to assets ratio.
2.2 Solvency
SPG has an Altman-Z score of 1.18. This is a bad value and indicates that SPG is not financially healthy and even has some risk of bankruptcy.
SPG has a Altman-Z score of 1.18. This is amongst the best in the industry. SPG outperforms 84.50% 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.
The Debt to FCF ratio of SPG (8.13) is better than 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 has a Debt to Equity ratio of 9.50. This is amonst the worse of the industry: SPG underperforms 94.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.5 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 1.18 |
ROIC/WACC1.19
WACC7.11%
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 Current ratio of 0.58. This is in the lower half of the industry: SPG underperforms 74.42% 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.
SPG's Quick ratio of 0.58 is on the low side compared to the rest of the industry. SPG is outperformed by 72.09% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 1.29% on average over the past years.
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 -0.59% on average per year.
SPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.29% yearly.
EPS Next Y-11.98%
EPS Next 2Y1.26%
EPS Next 3Y-2.14%
EPS Next 5Y-0.59%
Revenue Next Year5.52%
Revenue Next 2Y4.36%
Revenue Next 3Y4.16%
Revenue Next 5Y4.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 25.51, 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 73.64% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SPG to the average of the S&P500 Index (26.35), we can say SPG is valued inline with the index average.
SPG is valuated rather expensively with a Price/Forward Earnings ratio of 21.52.
SPG's Price/Forward Earnings ratio is rather cheap when compared to the industry. SPG is cheaper than 86.82% of the companies in the same industry.
SPG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 21.52 |
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 73.64% of the companies listed in the same industry.
SPG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SPG is cheaper than 80.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.17 | ||
| EV/EBITDA | 16.66 |
4.3 Compensation for Growth
SPG has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SPG's earnings are expected to decrease with -2.14% in the coming years.
PEG (NY)N/A
PEG (5Y)19.81
EPS Next 2Y1.26%
EPS Next 3Y-2.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.31%, SPG is a good candidate for dividend investing.
SPG's Dividend Yield is comparable with the industry average which is at 6.93.
SPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
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 131.55% 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.
DP131.55%
EPS Next 2Y1.26%
EPS Next 3Y-2.14%
160.21
+3.44 (+2.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.52%
Inst Owner Change2.31%
Ins Owners0.16%
Ins Owner Change1.76%
Market Cap52.30B
Analysts76.67
Price Target192.15 (19.94%)
Short Float %1.81%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
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)-2.36%
PT rev (3m)-1.88%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-1.29%
EPS NY rev (1m)-1.56%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 21.52 | ||
| P/S | 8.72 | ||
| P/FCF | 17.17 | ||
| P/OCF | 13.52 | ||
| P/B | 20.07 | ||
| P/tB | 20.07 | ||
| EV/EBITDA | 16.66 |
EPS(TTM)6.28
EY3.92%
EPS(NY)7.44
Fwd EY4.65%
FCF(TTM)9.33
FCFY5.82%
OCF(TTM)11.85
OCFY7.4%
SpS18.36
BVpS7.98
TBVpS7.98
PEG (NY)N/A
PEG (5Y)19.81
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 | 1.18 |
F-Score6
WACC7.11%
ROIC/WACC1.19
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-11.98%
EPS Next 2Y1.26%
EPS Next 3Y-2.14%
EPS Next 5Y-0.59%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.24%
Revenue growth 5Y0.71%
Sales Q2Q%4.97%
Revenue Next Year5.52%
Revenue Next 2Y4.36%
Revenue Next 3Y4.16%
Revenue Next 5Y4.29%
EBIT growth 1Y7.15%
EBIT growth 3Y8.62%
EBIT growth 5Y1.24%
EBIT Next Year58.03%
EBIT Next 3Y18.55%
EBIT Next 5Y13.42%
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%