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 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 on the other hand it scores bad on growth.
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.
SPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPG's Return On Assets of 7.31% is amongst the best of the industry. SPG outperforms 98.45% of its industry peers.
With an excellent Return On Equity value of 80.48%, SPG belongs to the best of the industry, outperforming 99.22% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.58%, SPG belongs to the best of the industry, outperforming 100.00% 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 3.17%.
The 3 year average ROIC (7.62%) for SPG is below the current ROIC(8.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 80.48% | ||
| ROIC | 8.58% |
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 (39.70%) than 91.47% of its industry peers.
In the last couple of years the Profit Margin of SPG has grown nicely.
Looking at the Operating Margin, with a value of 51.86%, 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 82.50% is amongst the best of the industry. SPG outperforms 83.72% of its industry peers.
SPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.86% | ||
| PM (TTM) | 39.7% | ||
| GM | 82.5% |
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.
SPG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SPG has been reduced compared to a year ago.
2.2 Solvency
SPG has an Altman-Z score of 1.23. This is a bad value and indicates that SPG is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.23, SPG belongs to the best of the industry, outperforming 85.27% of the companies in the same industry.
SPG has a debt to FCF ratio of 7.93. This is a slightly negative value and a sign of low solvency as SPG would need 7.93 years to pay back of all of its debts.
SPG's Debt to FCF ratio of 7.93 is amongst the best of the industry. SPG outperforms 95.35% of its industry peers.
SPG has a Debt/Equity ratio of 8.25. This is a high value indicating a heavy dependency on external financing.
SPG has a Debt to Equity ratio of 8.25. This is amonst the worse of the industry: SPG underperforms 94.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.25 | ||
| Debt/FCF | 7.93 | ||
| Altman-Z | 1.23 |
ROIC/WACC1.23
WACC6.99%
2.3 Liquidity
A Current Ratio of 0.56 indicates that SPG may have some problems paying its short term obligations.
With a Current ratio value of 0.56, SPG is not doing good in the industry: 72.87% of the companies in the same industry are doing better.
SPG has a Quick Ratio of 0.56. 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 0.56 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 | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.01% over the past 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 5.39%.
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)4.01%
EPS 3Y5.29%
EPS 5Y1.29%
EPS Q2Q%-10.92%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y5.24%
Revenue growth 5Y0.71%
Sales Q2Q%5.07%
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.
Based on estimates for the next years, SPG will show a small growth in Revenue. The Revenue will grow by 4.29% on average per year.
EPS Next Y-10.59%
EPS Next 2Y-2.61%
EPS Next 3Y-2.14%
EPS Next 5Y-0.59%
Revenue Next Year4.77%
Revenue Next 2Y4.07%
Revenue Next 3Y4.15%
Revenue Next 5Y4.29%
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
Based on the Price/Earnings ratio of 22.16, the valuation of SPG can be described as rather expensive.
69.77% 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 (28.10), we can say SPG is valued slightly cheaper.
SPG is valuated rather expensively with a Price/Forward Earnings ratio of 24.78.
Based on the Price/Forward Earnings ratio, SPG is valued cheaply inside the industry as 80.62% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SPG to the average of the S&P500 Index (20.74), we can say SPG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 24.78 |
4.2 Price Multiples
74.42% of the companies in the same industry are cheaper than SPG, based on the Enterprise Value to EBITDA ratio.
78.29% 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 | 17.16 | ||
| EV/EBITDA | 16.99 |
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 -2.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)17.2
EPS Next 2Y-2.61%
EPS Next 3Y-2.14%
5. Dividend
5.1 Amount
SPG has a Yearly Dividend Yield of 5.29%, which is a nice return.
Compared to an average industry Dividend Yield of 6.64, SPG has a dividend in line with its industry peers.
SPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
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 111.79% 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.
DP111.79%
EPS Next 2Y-2.61%
EPS Next 3Y-2.14%
160.86
-0.91 (-0.56%)
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 Change1.11%
Ins Owners0.16%
Ins Owner Change1.19%
Market Cap52.48B
Analysts76.67
Price Target192.15 (19.45%)
Short Float %1.71%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
Yearly Dividend8.12
Dividend Growth(5Y)-0.48%
DP111.79%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.56%
Min EPS beat(2)-8.04%
Max EPS beat(2)4.92%
EPS beat(4)2
Avg EPS beat(4)14.4%
Min EPS beat(4)-8.04%
Max EPS beat(4)61.43%
EPS beat(8)4
Avg EPS beat(8)11.22%
EPS beat(12)7
Avg EPS beat(12)10.6%
EPS beat(16)11
Avg EPS beat(16)17.92%
Revenue beat(2)2
Avg Revenue beat(2)0.72%
Min Revenue beat(2)0.06%
Max Revenue beat(2)1.38%
Revenue beat(4)3
Avg Revenue beat(4)0.37%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)1.38%
Revenue beat(8)4
Avg Revenue beat(8)0.15%
Revenue beat(12)8
Avg Revenue beat(12)2.41%
Revenue beat(16)12
Avg Revenue beat(16)3.94%
PT rev (1m)-2.36%
PT rev (3m)0.32%
EPS NQ rev (1m)2.27%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)0.61%
EPS NY rev (3m)-2.36%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)1.78%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 24.78 | ||
| P/S | 8.8 | ||
| P/FCF | 17.16 | ||
| P/OCF | 13.76 | ||
| P/B | 17.84 | ||
| P/tB | 17.84 | ||
| EV/EBITDA | 16.99 |
EPS(TTM)7.26
EY4.51%
EPS(NY)6.49
Fwd EY4.04%
FCF(TTM)9.38
FCFY5.83%
OCF(TTM)11.69
OCFY7.27%
SpS18.28
BVpS9.02
TBVpS9.02
PEG (NY)N/A
PEG (5Y)17.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 80.48% | ||
| ROCE | 10.86% | ||
| ROIC | 8.58% | ||
| ROICexc | 9.02% | ||
| ROICexgc | 9.02% | ||
| OM | 51.86% | ||
| PM (TTM) | 39.7% | ||
| GM | 82.5% | ||
| FCFM | 51.29% |
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-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.25 | ||
| Debt/FCF | 7.93 | ||
| Debt/EBITDA | 5.45 | ||
| Cap/Depr | 55.56% | ||
| Cap/Sales | 12.67% | ||
| Interest Coverage | 3.39 | ||
| Cash Conversion | 85.67% | ||
| Profit Quality | 129.21% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.23 |
F-Score8
WACC6.99%
ROIC/WACC1.23
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)4.01%
EPS 3Y5.29%
EPS 5Y1.29%
EPS Q2Q%-10.92%
EPS Next Y-10.59%
EPS Next 2Y-2.61%
EPS Next 3Y-2.14%
EPS Next 5Y-0.59%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y5.24%
Revenue growth 5Y0.71%
Sales Q2Q%5.07%
Revenue Next Year4.77%
Revenue Next 2Y4.07%
Revenue Next 3Y4.15%
Revenue Next 5Y4.29%
EBIT growth 1Y10.18%
EBIT growth 3Y8.62%
EBIT growth 5Y1.24%
EBIT Next Year56.07%
EBIT Next 3Y19.5%
EBIT Next 5Y13.42%
FCF growth 1Y-2.5%
FCF growth 3Y-0.54%
FCF growth 5Y0.85%
OCF growth 1Y-2.95%
OCF growth 3Y1.6%
OCF growth 5Y0.04%