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Market Cap

AU$14.1b

Last Updated

2021/05/11 08:08 UTC

Data Sources

Company Financials +

Executive Summary

Scentre Group (ASX Code: SCG) is the owner and operator of Westfield in Australia and New Zealand with interests in 42 Westfield Living Centres, encompassing approximately 12,000 outlets. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Scentre Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SCG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SCG's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.4%

SCG

0.6%

AU REITs

1.7%

AU Market


1 Year Return

23.2%

SCG

27.7%

AU REITs

36.6%

AU Market

Return vs Industry: SCG underperformed the Australian REITs industry which returned 27.7% over the past year.

Return vs Market: SCG underperformed the Australian Market which returned 36.6% over the past year.


Shareholder returns

SCGIndustryMarket
7 Day-0.4%0.6%1.7%
30 Day-5.6%1.7%2.2%
90 Day-2.9%8.7%4.6%
1 Year26.4%23.2%32.8%27.7%40.6%36.6%
3 Year-24.6%-34.2%31.2%13.9%32.0%16.3%
5 Year-27.0%-42.3%44.6%12.9%64.1%33.2%

Long-Term Price Volatility Vs. Market

How volatile is Scentre Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Scentre Group undervalued compared to its fair value and its price relative to the market?

21.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCG (A$2.71) is trading below our estimate of fair value (A$3.44)

Significantly Below Fair Value: SCG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SCG is unprofitable, so we can't compare its PE Ratio to the Australian REITs industry average.

PE vs Market: SCG is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SCG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SCG is good value based on its PB Ratio (0.7x) compared to the AU REITs industry average (1.1x).


Future Growth

How is Scentre Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

47.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: SCG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SCG's is expected to become profitable in the next 3 years.

Revenue vs Market: SCG's revenue (5.3% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: SCG's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SCG's Return on Equity is forecast to be low in 3 years time (6.8%).


Past Performance

How has Scentre Group performed over the past 5 years?

-42.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCG is currently unprofitable.

Growing Profit Margin: SCG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SCG is unprofitable, and losses have increased over the past 5 years at a rate of 42.2% per year.

Accelerating Growth: Unable to compare SCG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SCG is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-1.2%).


Return on Equity

High ROE: SCG has a negative Return on Equity (-19.86%), as it is currently unprofitable.


Financial Health

How is Scentre Group's financial position?


Financial Position Analysis

Short Term Liabilities: SCG's short term assets (A$3.0B) exceed its short term liabilities (A$2.9B).

Long Term Liabilities: SCG's short term assets (A$3.0B) do not cover its long term liabilities (A$16.2B).


Debt to Equity History and Analysis

Debt Level: SCG's debt to equity ratio (90.2%) is considered high.

Reducing Debt: SCG's debt to equity ratio has increased from 69.7% to 90.2% over the past 5 years.

Debt Coverage: SCG's debt is not well covered by operating cash flow (4%).

Interest Coverage: SCG is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

What is Scentre Group current dividend yield, its reliability and sustainability?

5.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCG's dividend (5.17%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: SCG's dividend (5.17%) is low compared to the top 25% of dividend payers in the Australian market (5.21%).


Stability and Growth of Payments

Stable Dividend: SCG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SCG has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.1%), SCG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCG's dividends in 3 years are forecast to be covered by earnings (74.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

Peter Allen (58 yo)

7.33yrs

Tenure

AU$1,805,053

Compensation

Mr. Peter Kenneth Allen has been the Chief Executive Officer and Executive Director of Scentre Group since 2010 and May 25, 2011 respectively and serves as its Managing Director. Mr. Allen has been Chief E...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.42M) is below average for companies of similar size in the Australian market ($USD3.50M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SCG's management team is seasoned and experienced (6.9 years average tenure).


Board Members

Experienced Board: SCG's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SCG insiders have bought and sold the same number of shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Scentre Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Scentre Group
  • Ticker: SCG
  • Exchange: ASX
  • Founded: 2014
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: AU$14.101b
  • Shares outstanding: 5.18b
  • Website: https://www.scentregroup.com

Number of Employees


Location

  • Scentre Group
  • 85 Castlereagh Street
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Biography

Scentre Group (ASX Code: SCG) is the owner and operator of Westfield in Australia and New Zealand with interests in 42 Westfield Living Centres, encompassing approximately 12,000 outlets.


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/11 08:08
End of Day Share Price2021/05/11 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.