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. While SPG belongs to the best of the industry regarding profitability, there are concerns on its financial health. SPG is valued correctly, 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.
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
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.
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.
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 Profit Margin of 34.19%. This is amongst the best in the industry. SPG outperforms 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.
SPG has a Gross Margin of 82.37%. This is amongst the best in the industry. SPG outperforms 82.95% 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
SPG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SPG has about the same amount of shares outstanding.
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 1.21, we must say that SPG is in the distress zone and has some risk of bankruptcy.
SPG's Altman-Z score of 1.21 is amongst the best of 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.
SPG's Debt to FCF ratio of 8.13 is amongst the best of the industry. SPG outperforms 95.35% of its industry peers.
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 | 1.21 |
ROIC/WACC1.2
WACC7.06%
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.
The Quick ratio of SPG (0.58) is worse than 72.09% 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%.
SPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.71% yearly.
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.
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 25.94, SPG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SPG is valued a bit cheaper than 73.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of SPG to the average of the S&P500 Index (26.17), we can say SPG is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.89, SPG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SPG is valued 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 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 21.89 |
4.2 Price Multiples
75.19% of the companies in the same industry are cheaper than SPG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SPG is valued cheaper than 80.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.46 | ||
| EV/EBITDA | 16.98 |
4.3 Compensation for Growth
The excellent profitability rating of SPG 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)20.14
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.
Compared to an average industry Dividend Yield of 6.93, SPG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, SPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
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
131.55% 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.
DP131.55%
EPS Next 2Y1.26%
EPS Next 3Y-2.14%
NYSE:SPG (5/29/2025, 2:03:52 PM)
162.925
+1.72 (+1.06%)
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 Cap53.18B
Analysts76.67
Price Target192.15 (17.94%)
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 | 25.94 | ||
| Fwd PE | 21.89 | ||
| P/S | 8.87 | ||
| P/FCF | 17.46 | ||
| P/OCF | 13.75 | ||
| P/B | 20.41 | ||
| P/tB | 20.41 | ||
| EV/EBITDA | 16.98 |
EPS(TTM)6.28
EY3.85%
EPS(NY)7.44
Fwd EY4.57%
FCF(TTM)9.33
FCFY5.73%
OCF(TTM)11.85
OCFY7.27%
SpS18.36
BVpS7.98
TBVpS7.98
PEG (NY)N/A
PEG (5Y)20.14
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
WACC7.06%
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-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%