SIMON PROPERTY GROUP INC (SPG)
US8288061091 - REIT
Taking everything into account, SPG scores 5 out of 10 in our fundamental rating. SPG was compared to 126 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
In the past year SPG was profitable.
In the past year SPG had a positive cash flow from operations.
SPG had positive earnings in each of the past 5 years.
Each year in the past 5 years SPG had a positive operating cash flow.
1.2 Ratios
SPG has a Return On Assets of 6.65%. This is amongst the best in the industry. SPG outperforms 97.56% of its industry peers.
SPG has a Return On Equity of 75.42%. This is amongst the best in the industry. SPG outperforms 100.00% of its industry peers.
SPG's Return On Invested Capital of 7.31% is amongst the best of the industry. SPG outperforms 99.19% of its industry peers.
SPG had an Average Return On Invested Capital over the past 3 years of 6.86%. This is above the industry average of 2.95%.
The last Return On Invested Capital (7.31%) for SPG is above the 3 year average (6.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 75.42% | ||
| ROIC | 7.31% |
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
Looking at the Profit Margin, with a value of 40.29%, SPG belongs to the top of the industry, outperforming 88.62% of the companies in the same industry.
In the last couple of years the Profit Margin of SPG has remained more or less at the same level.
SPG has a better Operating Margin (49.60%) than 91.87% of its industry peers.
SPG's Operating Margin has been stable in the last couple of years.
SPG has a better Gross Margin (81.83%) than 81.30% of its industry peers.
SPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.6% | ||
| PM (TTM) | 40.29% | ||
| GM | 81.83% |
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
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 has been reduced compared to 1 year ago.
The number of shares outstanding for SPG has been increased compared to 5 years ago.
The debt/assets ratio for SPG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that SPG is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.99, SPG is doing good in the industry, outperforming 74.80% of the companies in the same industry.
SPG has a debt to FCF ratio of 8.30. This is a slightly negative value and a sign of low solvency as SPG would need 8.30 years to pay back of all of its debts.
SPG's Debt to FCF ratio of 8.30 is amongst the best of the industry. SPG outperforms 94.31% of its industry peers.
A Debt/Equity ratio of 8.61 is on the high side and indicates that SPG has dependencies on debt financing.
With a Debt to Equity ratio value of 8.61, SPG is not doing good in the industry: 97.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.61 | ||
| Debt/FCF | 8.3 | ||
| Altman-Z | 0.99 |
ROIC/WACC1.03
WACC7.08%
2.3 Liquidity
SPG has a Current Ratio of 0.51. 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 0.51. This is amonst the worse of the industry: SPG underperforms 85.37% of its industry peers.
SPG has a Quick Ratio of 0.51. This is a bad value and indicates that SPG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.51, SPG is not doing good in the industry: 82.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
SPG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.06%.
The Earnings Per Share has been decreasing by -1.40% on average over the past years.
SPG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.94%.
Measured over the past years, SPG shows a small growth in Revenue. The Revenue has been growing by 0.05% on average per year.
EPS 1Y (TTM)7.06%
EPS 3Y21.83%
EPS 5Y-1.4%
EPS growth Q2Q11.17%
Revenue 1Y (TTM)6.94%
Revenue growth 3Y7.09%
Revenue growth 5Y0.05%
Revenue growth Q2Q9.11%
3.2 Future
Based on estimates for the next years, SPG will show a decrease in Earnings Per Share. The EPS will decrease by -1.90% on average per year.
SPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.44% yearly.
EPS Next Y-12.17%
EPS Next 2Y-4.49%
EPS Next 3Y-2.78%
EPS Next 5Y-1.9%
Revenue Next Year3.49%
Revenue Next 2Y3.3%
Revenue Next 3Y3.44%
Revenue Next 5YN/A
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
A Price/Earnings ratio of 20.18 indicates a rather expensive valuation of SPG.
Compared to the rest of the industry, the Price/Earnings ratio of SPG indicates a somewhat cheap valuation: SPG is cheaper than 79.67% of the companies listed in the same industry.
SPG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.55.
With a Price/Forward Earnings ratio of 22.97, SPG is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPG indicates a rather cheap valuation: SPG is cheaper than 85.37% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, SPG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 22.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPG is valued a bit more expensive than 69.11% of the companies in the same industry.
80.49% 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 | 14.62 | ||
| EV/EBITDA | 17.03 |
4.3 Compensation for Growth
SPG has an outstanding profitability rating, which may justify a higher PE ratio.
SPG's earnings are expected to decrease with -2.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.49%
EPS Next 3Y-2.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.46%, SPG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.00, SPG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, SPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
5.2 History
The dividend of SPG decreases each year by -1.11%.
SPG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SPG decreased in the last 3 years.
Dividend Growth(5Y)-1.11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
107.08% 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.
DP107.08%
EPS Next 2Y-4.49%
EPS Next 3Y-2.78%
SIMON PROPERTY GROUP INC
NYSE:SPG (5/2/2024, 1:33:58 PM)
140.825
+0.64 (+0.46%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap45.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 22.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 75.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 49.6% | ||
| PM (TTM) | 40.29% | ||
| GM | 81.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.06%
EPS 3Y21.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.94%
Revenue growth 3Y7.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y