Scentre Group
Market Cap
AU$7.8b
Last Updated
2020/03/30 10:48 UTC
Data Sources
Company Financials +
Executive Summary
Scentre Group owns and operates the pre-eminent living centre portfolio in Australia and New Zealand with retail real estate assets under management valued at $56.0 billion and shopping centre ownership interests valued at $38.2 billion.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -4.6% per year for the next 3 years
Snowflake Analysis
Undervalued average dividend payer.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-1.3%
SCG
-2.9%
AU REITs
0.3%
AU Market
1 Year Return
-63.7%
SCG
-36.8%
AU REITs
-22.9%
AU Market
Return vs Industry: SCG underperformed the Australian REITs industry which returned -36.8% over the past year.
Return vs Market: SCG underperformed the Australian Market which returned -22.9% over the past year.
Shareholder returns
| SCG | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.3% | -2.9% | 0.3% |
| 30 Day | -57.4% | -38.3% | -25.3% |
| 90 Day | -61.5% | -38.7% | -29.9% |
| 1 Year | -61.5%-63.7% | -33.9%-36.8% | -19.4%-22.9% |
| 3 Year | -60.1%-66.2% | -14.1%-26.2% | -8.3%-20.8% |
| 5 Year | -48.7%-60.6% | 9.4%-14.9% | 2.9%-20.3% |
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
1 week ago | Simply Wall St
Analysts Just Made A Major Revision To Their Scentre Group (ASX:SCG) Revenue Forecasts4 weeks ago | Simply Wall St
Scentre Group (ASX:SCG) Insiders Increased Their Holdings1 month ago | Simply Wall St
Volatility 101: Should Scentre Group (ASX:SCG) Shares Have Dropped 12%?Valuation
Is Scentre Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SCG (A$1.48) is trading below our estimate of fair value (A$9.03)
Significantly Below Fair Value: SCG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SCG is good value based on its PE Ratio (6.6x) compared to the REITs industry average (9.2x).
PE vs Market: SCG is good value based on its PE Ratio (6.6x) compared to the Australian market (12.6x).
Price to Earnings Growth Ratio
PEG Ratio: SCG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SCG is good value based on its PB Ratio (0.3x) compared to the AU REITs industry average (0.8x).
Next Steps
Future Growth
How is Scentre Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
-4.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCG's earnings are forecast to decline over the next 3 years (-4.6% per year).
Earnings vs Market: SCG's earnings are forecast to decline over the next 3 years (-4.6% per year).
High Growth Earnings: SCG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SCG's revenue (3.7% per year) is forecast to grow slower than the Australian market (4% per year).
High Growth Revenue: SCG's revenue (3.7% 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 (5.9%).
Next Steps
Past Performance
How has Scentre Group performed over the past 5 years?
-0.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCG has high quality earnings.
Growing Profit Margin: SCG's current net profit margins (45.1%) are lower than last year (86.8%).
Past Earnings Growth Analysis
Earnings Trend: SCG's earnings have declined by -0.9% per year over the past 5 years.
Accelerating Growth: SCG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SCG had negative earnings growth (-48.4%) over the past year, making it difficult to compare to the REITs industry average (1.7%).
Return on Equity
High ROE: SCG's Return on Equity (5%) is considered low.
Next Steps
Financial Health
How is Scentre Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: SCG has a high level of physical assets or inventory.
Debt Coverage by Assets: SCG's debt is not covered by short term assets (assets are 0x debt).
Financial Institutions Analysis
Asset Level: SCG's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if SCG has a sufficient allowance for bad loans.
Low Risk Liabilities: SCG reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if SCG has an acceptable proportion of non-loan assets held.
Low Risk Deposits: SCG has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if SCG has an appropriate level of bad loans.
Next Steps
Dividend
What is Scentre Group's current dividend yield, its reliability and sustainability?
15.32%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SCG's dividend (15.32%) is higher than the bottom 25% of dividend payers in the Australian market (3.35%).
High Dividend: SCG's dividend (15.32%) is in the top 25% of dividend payers in the Australian market (8.5%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SCG has been paying a dividend for less than 10 years.
Growing Dividend: SCG's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (88.3%), SCG's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SCG's dividends in 3 years are forecast to be thoroughly covered by earnings (0.02% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Peter Allen (57yo)
6.17s
Tenure
AU$7,157,781
Compensation
Mr. Peter Kenneth Allen has been the Chief Executive Officer and Executive Director of Scentre Group since 2010 and May 25, 2011 respectively and serves as its Managing Director. Mr. Allen has been Chief E ...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD4.39M) is above average for companies of similar size in the Australian market ($USD2.57M).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 6.17yrs | AU$7.16m | 0.11% A$8.3m | |
| Chief Financial Officer | 0.92yr | AU$2.08m | no data | |
| Director of Technology | 0.17yr | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel & Compliance and Secretary of Scentre Group | 5.75yrs | no data | no data | |
| General Counsel & Secretary | 5.75yrs | no data | no data | |
| Director of Human Resources | 5.75yrs | no data | no data | |
| General Manager of Development | no data | no data | no data | |
| Director of Security | 4.5yrs | no data | no data |
5.8yrs
Average Tenure
Experienced Management: SCG's management team is seasoned and experienced (5.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 6.17yrs | AU$7.16m | 0.11% A$8.3m | |
| Independent Non-Executive Director | 4yrs | AU$250.13k | 0.0011% A$86.1k | |
| Independent Non-Executive Director | 5.75yrs | AU$280.13k | 0.0021% A$167.4k | |
| Independent Non-Executive Director | 5.75yrs | AU$280.13k | 0.00093% A$72.8k | |
| Independent Non-Executive Chairman | 3.83yrs | AU$717.50k | 0.0032% A$250.4k | |
| Independent Non-Executive Director | 4.83yrs | AU$245.13k | 0.0012% A$91.5k | |
| Independent Non-Executive Director | 4yrs | AU$285.13k | 0.0011% A$86.1k | |
| Independent Non-Executive Director | 0.92yr | AU$156.01k | 0.0019% A$145.5k |
4.4yrs
Average Tenure
58yo
Average Age
Experienced Board: SCG's board of directors are considered experienced (4.4 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 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 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$7.824b
- Shares outstanding: 5.18b
- Website: https://www.scentregroup.com
Number of Employees
Location
- Scentre Group
- 85 Castlereagh Street
- Level 30
- Sydney
- New South Wales
- 2000
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SCG | ASX (Australian Securities Exchange) | Yes | SCG Stapled Units | AU | AUD | Jun 2014 |
| SCG | CHIA (Chi-X Australia) | Yes | SCG Stapled Units | AU | AUD | Jun 2014 |
| STGP.F | OTCPK (Pink Sheets LLC) | Yes | SCG Stapled Units | US | USD | Jun 2014 |
Biography
Scentre Group owns and operates the pre-eminent living centre portfolio in Australia and New Zealand with retail real estate assets under management valued at $56.0 billion and shopping centre ownership interests valued at $38.2 billion. This comprises 42 Westfield living centres which have strong franchise value and the ability to attract the world’s leading retail brands.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 10:48 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.