Scentre Group
Market Cap
AU$21.0b
Last Updated
2019/10/14 10:37 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 41 centres, encompassing approximately 11,500 outlets and total assets under management of $54.6 billion.
Snowflake
Fundamentals
Good value second-rate 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
Market Performance
7 Day Return
0.8%
SCG
-1.0%
AU REITs
1.0%
AU Market
1 Year Return
4.5%
SCG
21.1%
AU REITs
11.7%
AU Market
Return vs Industry: SCG underperformed the Australian REITs industry which returned 21.1% over the past year.
Return vs Market: SCG underperformed the Australian Market which returned 11.7% over the past year.
Shareholder returns
| SCG | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | -1.0% | 1.0% |
| 30 Day | -1.0% | 0.5% | -0.2% |
| 90 Day | 1.5% | -2.5% | 0.3% |
| 1 Year | 10.5%4.5% | 27.2%21.1% | 18.1%11.7% |
| 3 Year | 6.9%-9.0% | 47.2%26.0% | 37.4%19.0% |
| 5 Year | 53.2%18.2% | 103.7%58.4% | 51.7%17.6% |
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
2 weeks ago | Simply Wall St
Should You Worry About Scentre Group's (ASX:SCG) CEO Salary Level?1 month ago | Simply Wall St
Is Scentre Group's (ASX:SCG) ROE Of 6.5% Concerning?2 months ago | Simply Wall St
Scentre Group (ASX:SCG) Is About To Go Ex-Dividend, And It Pays A 2.8% YieldValuation
Is Scentre Group undervalued compared to its fair value and its price relative to the market?
23.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: SCG (A$3.96) is trading below our estimate of fair value (A$5.2)
Significantly Undervalued: SCG is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SCG is good value based on its PE Ratio (13.4x) compared to the REITs industry average (15.7x).
PE vs Market: SCG is good value based on its PE Ratio (13.4x) compared to the Australian market (17.9x).
Price to Earnings Growth Ratio
Low 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 (0.9x) compared to the AU REITs industry average (1.1x).
Next Steps
Future Growth
How is Scentre Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-3.5%
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 (-3.5% per year).
Earnings vs Market: SCG's earnings are forecast to decline over the next 3 years (-3.5% per year).
High Growth Earnings: SCG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SCG's revenue (5.4% per year) is forecast to grow faster than the Australian market (3.5% per year).
High Growth Revenue: SCG's revenue (5.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: SCG's Return on Equity is forecast to be low in 3 years time (5.5%).
Next Steps
Past Performance
How has Scentre Group performed over the past 5 years?
13.1%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: SCG's earnings have grown by 13.1% 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 (-63.3%) over the past year, making it difficult to compare to the REITs industry average (-16.3%).
Return on Equity
High ROE: SCG's Return on Equity (6.5%) is considered low.
Return on Assets
ROA vs Industry: SCG's Return on Assets is below or equal to the REITs industry average last year.
Return on Capital Employed
ROCE Improving: SCG's Return on Capital Employed has declined over the past 3 years.
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 0.1x 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?
5.60%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: SCG's dividend (5.6%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).
High Dividend: SCG's dividend (5.6%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).
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 (86.5%), 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
What is the CEO of Scentre Group's salary, the management and board of directors tenure and is there insider trading?
4.1yrs
Average management tenure
CEO
Peter Allen (57yo)
5.8yrs
Tenure
AU$7,736,343
Compensation
Mr. Peter Kenneth Allen has been the Chief Executive Officer and Executive Director of Scentre Group since 2010 and May 25, 2011 respectively. Mr. Allen has been Chief Executive Officer and Executive Direc ...
CEO Compensation Analysis
Compensation vs. Market: Peter's total compensation ($USD5.27M) is about average for companies of similar size in the Australian market ($USD3.85M).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.1yrs
Average Tenure
52yo
Average Age
Experienced Management: SCG's management team is considered experienced (4.1 years average tenure).
Board Age and Tenure
4.0yrs
Average Tenure
58yo
Average Age
Experienced Board: SCG's board of directors are considered experienced (4 years average tenure).
Insider Trading
Insider Buying: SCG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 50,000 |
| Max Price | AU$3.99 |
| Entity | Company |
| Shares | 53,362,744 |
| Max Price | AU$4.01 |
| Entity | Company |
| Shares | 1,597,981 |
| Max Price | AU$4.35 |
| Entity | Company |
| Shares | 1,597,981 |
| Max Price | AU$4.35 |
| Entity | Company |
| Shares | 91,700 |
| Max Price | AU$3.68 |
| Entity | Company |
| Shares | 133,623,270 |
| Max Price | AU$4.48 |
| Entity | Company |
| Shares | 80,904,351 |
| Max Price | AU$4.48 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 15,000 |
| Max Price | AU$3.94 |
| Entity | Company |
| Shares | 122,546,055 |
| Max Price | AU$4.57 |
| Entity | Company |
| Shares | 60,321,973 |
| Max Price | AU$4.45 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 10,000 |
| Max Price | AU$3.80 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 30,000 |
| Max Price | AU$3.87 |
| Entity | Individual |
| Role | Chairman of the Board Independent Non-Executive Chairman |
| Shares | 6,560 |
| Max Price | AU$3.81 |
Ownership Breakdown
Management Team
Peter Allen (57yo)
CEO & Executive Director
- Tenure: 5.8yrs
- Compensation: AU$7.74m
Cynthia Whelan (49yo)
Chief Strategy & Business Development Officer
- Tenure: 0.7yrs
Elliott Rusanow (45yo)
Chief Financial Officer
- Tenure: 0.5yrs
Greg Miles (55yo)
Chief Operating Officer
- Tenure: 3.9yrs
- Compensation: AU$4.66m
Janine Frew
Director of Human Resources
- Tenure: 5.3yrs
Paul Giugni
General Counsel & Secretary
- Tenure: 5.3yrs
Roy Gruenpeter
General Manager of Development
- Tenure: 0yrs
John Yates
Director of Security
- Tenure: 4.1yrs
Board Members
Sarah Carolyn Kay (58yo)
Independent Non-Executive Director
- Tenure: 3.7yrs
- Compensation: AU$250.13k
Andrew Harmos (59yo)
Independent Non-Executive Director
- Tenure: 5.3yrs
- Compensation: AU$280.13k
Mike Ihlein (63yo)
Independent Non-Executive Director
- Tenure: 5.3yrs
- Compensation: AU$280.13k
Peter Allen (57yo)
CEO & Executive Director
- Tenure: 5.8yrs
- Compensation: AU$7.74m
Brian Schwartz (66yo)
Independent Non-Executive Chairman
- Tenure: 3.4yrs
- Compensation: AU$717.50k
Aliza Knox (57yo)
Independent Non-Executive Director
- Tenure: 4.4yrs
- Compensation: AU$240.13k
Margie Seale (58yo)
Independent Non-Executive Director
- Tenure: 3.7yrs
- Compensation: AU$280.13k
Steven Leigh
Non-Executive Director
- Tenure: 0.5yrs
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$21.026b
- Shares outstanding: 5.30b
- 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 (ASX Code: SCG) is the owner and operator of Westfield in Australia and New Zealand with interests in 41 centres, encompassing approximately 11,500 outlets and total assets under management o ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/14 10:37 |
| End of Day Share Price | 2019/10/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.