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SCG

Scentre GroupASX:SCG Stock Report

Last Price

AU$2.95

Market Cap

AU$15.3b

7D

-3.6%

1Y

3.1%

Updated

21 Jan, 2022

Data

Company Financials +
SCG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance1/6
Financial Health0/6
Dividends3/6

SCG Stock Overview

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.

Scentre Group Competitors

Vicinity Centres

ASX:VCX

AU$7.4b

Shopping Centres Australasia Property Group

ASX:SCP

AU$3.1b

BWP Trust

ASX:BWP

AU$2.6b

Charter Hall Retail Real Estate Investment Trust

ASX:CQR

AU$2.3b

Price History & Performance

Summary of all time highs, changes and price drops for Scentre Group
Historical stock prices
Current Share PriceAU$2.95
52 Week HighAU$3.30
52 Week LowAU$2.46
Beta1.56
1 Month Change-4.22%
3 Month Change-5.15%
1 Year Change3.15%
3 Year Change-26.07%
5 Year Change-33.71%
Change since IPO-4.22%

Recent News & Updates

Mar 13
Trade Alert: The Independent Non-Executive Director Of Scentre Group (ASX:SCG), Andrew Harmos, Has Sold Some Shares Recently

Trade Alert: The Independent Non-Executive Director Of Scentre Group (ASX:SCG), Andrew Harmos, Has Sold Some Shares Recently

We'd be surprised if Scentre Group ( ASX:SCG ) shareholders haven't noticed that the Independent Non-Executive...

Feb 25
Scentre Group (ASX:SCG) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

Scentre Group (ASX:SCG) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a good week for Scentre Group ( ASX:SCG ) shareholders, because the company has just released its latest...

Shareholder Returns

SCGAU REITsAU Market
7D-3.6%-1.6%-0.5%
1Y3.1%16.7%8.4%

Return vs Industry: SCG underperformed the Australian REITs industry which returned 16.7% over the past year.

Return vs Market: SCG underperformed the Australian Market which returned 8.4% over the past year.

Price Volatility

Is SCG's price volatile compared to industry and market?
SCG volatility
SCG Average Weekly Movement3.3%
REITs Industry Average Movement3.1%
Market Average Movement8.6%
10% most volatile stocks in AU Market15.5%
10% least volatile stocks in AU Market3.6%

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

Volatility Over Time: SCG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20142,427Peter Allenhttps://www.scentregroup.com

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.

Scentre Group Fundamentals Summary

How do Scentre Group's earnings and revenue compare to its market cap?
SCG fundamental statistics
Market CapAU$15.29b
Earnings (TTM)AU$281.90m
Revenue (TTM)AU$2.15b

54.3x

P/E Ratio

7.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCG income statement (TTM)
RevenueAU$2.15b
Cost of RevenueAU$574.20m
Gross ProfitAU$1.58b
ExpensesAU$1.29b
EarningsAU$281.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.054
Gross Margin73.29%
Net Profit Margin13.11%
Debt/Equity Ratio80.1%

How did SCG perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

42%

Payout Ratio

Valuation

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

37.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCG (A$2.95) is trading below our estimate of fair value (A$4.72)

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


Price To Earnings Ratio

PE vs Industry: SCG is poor value based on its PE Ratio (54.3x) compared to the Australian REITs industry average (9.7x).

PE vs Market: SCG is poor value based on its PE Ratio (54.3x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: SCG is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: SCG is good value based on its PB Ratio (0.8x) compared to the AU REITs industry average (1.2x).


Future Growth

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

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCG's forecast earnings growth (10% per year) is above the savings rate (1.9%).

Earnings vs Market: SCG's earnings (10% per year) are forecast to grow slower than the Australian market (11.1% per year).

High Growth Earnings: SCG's earnings are forecast to grow, but not significantly.

Revenue vs Market: SCG's revenue (4.8% per year) is forecast to grow slower than the Australian market (4.8% per year).

High Growth Revenue: SCG's revenue (4.8% 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 (5.8%).


Past Performance

How has Scentre Group performed over the past 5 years?

-49.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCG has a large one-off loss of A$221.6M impacting its June 30 2021 financial results.

Growing Profit Margin: SCG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SCG's earnings have declined by 49.5% per year over the past 5 years.

Accelerating Growth: SCG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SCG has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (106.4%).


Return on Equity

High ROE: SCG's Return on Equity (1.6%) is considered low.


Financial Health

How is Scentre Group's financial position?


Financial Position Analysis

Short Term Liabilities: SCG's short term assets (A$1.6B) do not cover its short term liabilities (A$2.2B).

Long Term Liabilities: SCG's short term assets (A$1.6B) do not cover its long term liabilities (A$15.4B).


Debt to Equity History and Analysis

Debt Level: SCG's net debt to equity ratio (77.9%) is considered high.

Reducing Debt: SCG's debt to equity ratio has increased from 69.4% to 80.1% over the past 5 years.

Debt Coverage: SCG's debt is not well covered by operating cash flow (6.2%).

Interest Coverage: SCG's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

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

4.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCG's dividend (4.75%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: SCG's dividend (4.75%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


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: With its reasonably low payout ratio (41.8%), SCG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCG's dividends in 3 years are forecast to be covered by earnings (78% payout ratio).


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Peter Allen (59 yo)

8yrs

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 ($USD1.31M) is below average for companies of similar size in the Australian market ($USD3.57M).

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 (7.6 years average tenure).


Board Members

Experienced Board: SCG's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 employee growth, exchange listings and data sources


Key Information

  • Name: Scentre Group
  • Ticker: SCG
  • Exchange: ASX
  • Founded: 2014
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: AU$15.293b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 15:51
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
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.