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SCG

Scentre Group ASX:SCG Stock Report

Last Price

AU$2.54

Market Cap

AU$13.2b

7D

-1.9%

1Y

-13.3%

Updated

30 Sep, 2022

Data

Company Financials +
SCG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health1/6
Dividends2/6

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

Price History & Performance

Summary of all time highs, changes and price drops for Scentre Group
Historical stock prices
Current Share PriceAU$2.54
52 Week HighAU$3.30
52 Week LowAU$2.42
Beta1.46
1 Month Change-11.81%
3 Month Change-3.05%
1 Year Change-13.31%
3 Year Change-35.37%
5 Year Change-34.70%
Change since IPO-17.53%

Recent News & Updates

Shareholder Returns

SCGAU REITsAU Market
7D-1.9%-3.0%-1.7%
1Y-13.3%-22.7%-10.8%

Return vs Industry: SCG exceeded the Australian REITs industry which returned -22.2% over the past year.

Return vs Market: SCG underperformed the Australian Market which returned -9.7% over the past year.

Price Volatility

Is SCG's price volatile compared to industry and market?
SCG volatility
SCG Average Weekly Movement3.5%
REITs Industry Average Movement3.5%
Market Average Movement9.4%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.2%

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
20142,749Peter 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$13.17b
Earnings (TTM)AU$967.30m
Revenue (TTM)AU$2.38b

13.6x

P/E Ratio

5.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCG income statement (TTM)
RevenueAU$2.38b
Cost of RevenueAU$770.10m
Gross ProfitAU$1.61b
Other ExpensesAU$638.30m
EarningsAU$967.30m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.19
Gross Margin67.58%
Net Profit Margin40.72%
Debt/Equity Ratio78.6%

How did SCG perform over the long term?

See historical performance and comparison

Dividends

5.9%

Current Dividend Yield

78%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SCG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SCG?

Other financial metrics that can be useful for relative valuation.

SCG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue11.9x
Enterprise Value/EBITDAn/a
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

How does SCG's PE Ratio compare to its peers?

SCG PE Ratio vs Peers
The above table shows the PE ratio for SCG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.9x
VCX Vicinity Centres
6.5x-10.9%AU$7.9b
BWP BWP Trust
4.9x-24.4%AU$2.4b
HDN HomeCo Daily Needs REIT
6.9x-3.8%AU$2.3b
SCP Shopping Centres Australasia Property Group
5.5x-19.0%AU$2.7b
SCG Scentre Group
13.6x4.3%AU$13.2b

Price-To-Earnings vs Peers: SCG is expensive based on its Price-To-Earnings Ratio (13.6x) compared to the peer average (5.9x).


Price to Earnings Ratio vs Industry

How does SCG's PE Ratio compare vs other companies in the AU REITs Industry?

Price-To-Earnings vs Industry: SCG is expensive based on its Price-To-Earnings Ratio (13.6x) compared to the Australian REITs industry average (6.1x)


Price to Earnings Ratio vs Fair Ratio

What is SCG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SCG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.6x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: SCG is good value based on its Price-To-Earnings Ratio (13.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).


Share Price vs Fair Value

What is the Fair Price of SCG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SCG (A$2.54) is trading below our estimate of fair value (A$4.26)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Scentre Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCG's forecast earnings growth (4.3% per year) is above the savings rate (1.8%).

Earnings vs Market: SCG's earnings (4.3% per year) are forecast to grow slower than the Australian market (6.5% per year).

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

Revenue vs Market: SCG's revenue (5.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: SCG's revenue (5.1% 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 (5.7%).


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Past Performance

How has Scentre Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-45.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SCG has a large one-off gain of A$170.4M impacting its June 30 2022 financial results.

Growing Profit Margin: SCG's current net profit margins (40.7%) are higher than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: SCG's earnings have declined by 45.7% per year over the past 5 years.

Accelerating Growth: SCG's earnings growth over the past year (243.1%) exceeds its 5-year average (-45.7% per year).

Earnings vs Industry: SCG earnings growth over the past year (243.1%) exceeded the REITs industry 47.6%.


Return on Equity

High ROE: SCG's Return on Equity (5.2%) is considered low.


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Financial Health

How is Scentre Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SCG's short term assets (A$876.0M) do not cover its short term liabilities (A$2.3B).

Long Term Liabilities: SCG's short term assets (A$876.0M) do not cover its long term liabilities (A$15.0B).


Debt to Equity History and Analysis

Debt Level: SCG's net debt to equity ratio (76.5%) is considered high.

Reducing Debt: SCG's debt to equity ratio has increased from 61.3% to 78.6% over the past 5 years.

Debt Coverage: SCG's debt is not well covered by operating cash flow (6.5%).

Interest Coverage: SCG's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.91%

Current Dividend Yield

Dividend Yield vs Market

Scentre Group Dividend Yield vs Market
How does Scentre Group dividend yield compare to the market?
SegmentDividend Yield
Company (Scentre Group)5.9%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.2%
Industry Average (REITs)5.2%
Analyst forecast in 3 Years (Scentre Group)6.4%

Notable Dividend: SCG's dividend (5.91%) is higher than the bottom 25% of dividend payers in the Australian market (2.77%).

High Dividend: SCG's dividend (5.91%) is low compared to the top 25% of dividend payers in the Australian market (7.18%).


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 8 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (77.9%), SCG's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (118%), SCG's dividend payments are not well covered by cash flows.


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Management

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

5.8yrs

Average management tenure


CEO

Peter Allen (60 yo)

11.33yrs

Tenure

AU$5,938,449

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

Peter Allen's Compensation vs Scentre Group Earnings
How has Peter Allen's remuneration changed compared to Scentre Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

AU$967m

Mar 31 2022n/an/a

AU$928m

Dec 31 2021AU$6mAU$2m

AU$888m

Sep 30 2021n/an/a

AU$585m

Jun 30 2021n/an/a

AU$282m

Mar 31 2021n/an/a

-AU$2b

Dec 31 2020AU$2mAU$2m

-AU$4b

Sep 30 2020n/an/a

-AU$3b

Jun 30 2020n/an/a

-AU$3b

Mar 31 2020n/an/a

-AU$997m

Dec 31 2019AU$7mAU$2m

AU$1b

Sep 30 2019n/an/a

AU$1b

Jun 30 2019n/an/a

AU$2b

Mar 31 2019n/an/a

AU$2b

Dec 31 2018AU$8mAU$2m

AU$2b

Sep 30 2018n/an/a

AU$3b

Jun 30 2018n/an/a

AU$4b

Mar 31 2018n/an/a

AU$4b

Dec 31 2017AU$7mAU$2m

AU$4b

Sep 30 2017n/an/a

AU$4b

Jun 30 2017n/an/a

AU$3b

Mar 31 2017n/an/a

AU$3b

Dec 31 2016AU$7mAU$2m

AU$3b

Sep 30 2016n/an/a

AU$3b

Jun 30 2016n/an/a

AU$3b

Mar 31 2016n/an/a

AU$3b

Dec 31 2015AU$9mAU$2m

AU$3b

Compensation vs Market: Peter's total compensation ($USD3.85M) is above average for companies of similar size in the Australian market ($USD2.93M).

Compensation vs Earnings: Peter's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SCG's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: SCG's board of directors are considered experienced (6.5 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

ASX:SCG Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
26 Aug 22BuyAU$290,000Catherine BrennerIndividual100,000AU$2.90

Ownership Breakdown

What is the ownership structure of SCG?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders7,288,7690.1%
General Public2,063,636,59239.8%
Institutions3,113,252,32760.1%

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


Top Shareholders

Top 25 shareholders own 55.48% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.28%
UniSuper Limited
584,575,781A$1.5b0%12.45%
10.12%
The Vanguard Group, Inc.
524,857,282A$1.3b0%0.02%
9.58%
BlackRock, Inc.
496,793,754A$1.3b0%0.02%
6.63%
State Street Global Advisors, Inc.
343,877,604A$873.4m0%0.03%
4.9%
Pinnacle Fund Services Limited
253,981,164A$645.1m0%16.15%
1.99%
Dimensional Fund Advisors LP
103,262,571A$262.3m2.72%0.04%
1.58%
Franklin Resources, Inc.
81,844,832A$207.9m1.21%0.06%
1.51%
Norges Bank Investment Management
78,428,060A$199.2m0%0.02%
1.18%
T. Rowe Price Group, Inc.
61,093,965A$155.2m-0.1%0.01%
1.11%
Colonial First State Investments Limited
57,741,285A$146.7m0%1.19%
0.66%
Van Eck Associates Corporation
33,983,630A$86.3m4.49%0.12%
0.57%
Geode Capital Management, LLC
29,354,309A$74.6m2.81%0.01%
0.54%
Commonwealth Superannuation Corporation
27,781,806A$70.6m0%0.87%
0.52%
BetaShares Capital Limited
27,081,221A$68.8m4.67%0.57%
0.42%
Northern Trust Global Investments
21,981,221A$55.8m0.05%0.01%
0.38%
UBS Asset Management
19,574,499A$49.7m-7.32%0.01%
0.36%
Legal & General Investment Management Limited
18,699,306A$47.5m0%0.01%
0.35%
Zurich Investment Management Limited
18,059,928A$45.9m0%6.5%
0.32%
Renaissance Property Securities Pty Ltd.
16,805,524A$42.7m0%17.04%
0.3%
Asset Management One Co., Ltd.
15,528,947A$39.4m0%0.03%
0.26%
Charles Schwab Investment Management, Inc.
13,724,293A$34.9m0.52%0.01%
0.24%
J.P. Morgan Asset Management, Inc.
12,603,046A$32.0m-2.21%no data
0.23%
Bank Julius Bär & Co Ltd., Asset Management Arm
11,804,746A$30.0m9.82%0.1%
0.22%
CBRE Investment Management Listed Real Assets LLC
11,410,631A$29.0m0%0.24%
0.22%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
11,252,133A$28.6m-0.37%0.01%

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$13.168b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCGASX (Australian Securities Exchange)YesSCG Stapled UnitsAUAUDJun 2014
SCGCHIA (Chi-X Australia)YesSCG Stapled UnitsAUAUDJun 2014
STGP.FOTCPK (Pink Sheets LLC)YesSCG Stapled UnitsUSUSDJun 2014
59SDB (Deutsche Boerse AG)YesSCG Stapled UnitsDEEURJun 2014

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.