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 128 industry peers in the Diversified REITs industry. While SPG has a great profitability rating, there are quite some 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.
Each year in the past 5 years SPG has been profitable.
SPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPG has a Return On Assets of 6.31%. This is amongst the best in the industry. SPG outperforms 97.66% of its industry peers.
The Return On Equity of SPG (78.66%) is better 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.
Measured over the past 3 years, the Average Return On Invested Capital for SPG is above the industry average of 3.14%.
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 89.06% of the companies in the same industry.
In the last couple of years the Profit Margin of SPG has grown nicely.
Looking at the Operating Margin, with a value of 51.47%, SPG belongs to the top of the industry, outperforming 92.19% 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 82.03% 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
SPG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SPG has about the same amout of shares outstanding than it did 1 year ago.
SPG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SPG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.19, we must say that SPG is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.19, SPG belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 8.13, SPG belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
A Debt/Equity ratio of 9.50 is on the high side and indicates that SPG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 9.50, SPG is doing worse than 94.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.5 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 1.19 |
ROIC/WACC1.04
WACC8.18%
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.
Looking at the Current ratio, with a value of 0.58, SPG is doing worse than 73.44% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that SPG may have some problems paying its short term obligations.
With a Quick ratio value of 0.58, SPG is not doing good in the industry: 71.09% of the companies in the same industry are doing better.
| 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.
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 -0.87% yearly.
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-0.87%
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.
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
The Price/Earnings ratio is 25.33, which means the current valuation is very expensive for SPG.
SPG's Price/Earnings ratio is a bit cheaper when compared to the industry. SPG is cheaper than 74.22% of the companies in the same industry.
SPG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.65.
Based on the Price/Forward Earnings ratio of 22.84, the valuation of SPG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SPG is valued cheaper than 85.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SPG to the average of the S&P500 Index (21.27), we can say SPG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.33 | ||
| Fwd PE | 22.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPG is valued a bit more expensive than 70.31% of the companies in the same industry.
SPG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SPG is cheaper than 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.05 | ||
| EV/EBITDA | 16.82 |
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 -3.25% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)19.67
EPS Next 2Y-2.04%
EPS Next 3Y-3.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.35%, SPG is a good candidate for dividend investing.
SPG's Dividend Yield is comparable with the industry average which is at 6.72.
SPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
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.
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%
159.08
+1.81 (+1.15%)
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 Change2.32%
Ins Owners0.15%
Ins Owner Change1.85%
Market Cap51.93B
Analysts76.67
Price Target188.28 (18.36%)
Short Float %1.57%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
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)5.88%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)1%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)1.89%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.33 | ||
| Fwd PE | 22.84 | ||
| P/S | 8.66 | ||
| P/FCF | 17.05 | ||
| P/OCF | 13.42 | ||
| P/B | 19.93 | ||
| P/tB | 19.93 | ||
| EV/EBITDA | 16.82 |
EPS(TTM)6.28
EY3.95%
EPS(NY)6.97
Fwd EY4.38%
FCF(TTM)9.33
FCFY5.87%
OCF(TTM)11.85
OCFY7.45%
SpS18.36
BVpS7.98
TBVpS7.98
PEG (NY)N/A
PEG (5Y)19.67
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 | 1.19 |
F-Score6
WACC8.18%
ROIC/WACC1.04
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-0.87%
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%