ASX:SDG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sunland Group Limited develops and constructs residential properties in Australia.


Snowflake Analysis

Undervalued with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SDG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.6%

SDG

-5.0%

AU Real Estate

-1.2%

AU Market


1 Year Return

-33.5%

SDG

-17.7%

AU Real Estate

-11.2%

AU Market

Return vs Industry: SDG underperformed the Australian Real Estate industry which returned -17.7% over the past year.

Return vs Market: SDG underperformed the Australian Market which returned -11.2% over the past year.


Shareholder returns

SDGIndustryMarket
7 Day-4.6%-5.0%-1.2%
30 Day-8.9%-5.3%1.7%
90 Day-8.1%0.7%10.5%
1 Year-31.9%-33.5%-14.8%-17.7%-7.5%-11.2%
3 Year-26.8%-36.9%-20.2%-28.1%16.9%1.5%
5 Year-16.7%-33.1%-4.7%-21.5%28.6%0.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SDG (A$1.13) is trading below our estimate of fair value (A$1.57)

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


Price To Earnings Ratio

PE vs Industry: SDG is good value based on its PE Ratio (10.4x) compared to the AU Real Estate industry average (12.5x).

PE vs Market: SDG is good value based on its PE Ratio (10.4x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: SDG is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: SDG is good value based on its PB Ratio (0.4x) compared to the AU Real Estate industry average (0.7x).


Next Steps

Future Growth

How is Sunland Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDG's forecast earnings growth (1.5% per year) is below the savings rate (2.3%).

Earnings vs Market: SDG's earnings (1.5% per year) are forecast to grow slower than the Australian market (14% per year).

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

Revenue vs Market: SDG's revenue (22.7% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: SDG's revenue (22.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SDG's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Sunland Group performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDG has high quality earnings.

Growing Profit Margin: SDG's current net profit margins (11.8%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: SDG's earnings have declined by 3.3% per year over the past 5 years.

Accelerating Growth: SDG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SDG had negative earnings growth (-20.7%) over the past year, making it difficult to compare to the Real Estate industry average (-13.4%).


Return on Equity

High ROE: SDG's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Sunland Group's financial position?


Financial Position Analysis

Short Term Liabilities: SDG's short term assets (A$200.7M) exceed its short term liabilities (A$22.5M).

Long Term Liabilities: SDG's short term assets (A$200.7M) do not cover its long term liabilities (A$205.2M).


Debt to Equity History and Analysis

Debt Level: SDG's debt to equity ratio (52.1%) is considered high.

Reducing Debt: SDG's debt to equity ratio has increased from 32.4% to 52.1% over the past 5 years.

Debt Coverage: SDG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SDG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

5.27%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SDG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SDG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SDG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SDG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SDG is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SDG's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

7.1yrs

Average board tenure


CEO

Sahba Abedian (44yo)

14.5yrs

Tenure

AU$744,142

Compensation

Mr. Sahba Abedian, LLB (Bond University) serves as the Managing Director and Director at Sunland Group Ltd. He is a qualified Lawyer and was admitted into the Supreme Court of Queensland in 1998 as a solic ...


CEO Compensation Analysis

Compensation vs Market: Sahba's total compensation ($USD518.20K) is above average for companies of similar size in the Australian market ($USD263.85K).

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


Board Members

NamePositionTenureCompensationOwnership
Soheil Abedian
Founder & Executive Chairman8.67yrsAU$750.00k16.38% A$24.3m
Sahba Abedian
MD & Director14.5yrsAU$744.14k6.68% A$9.9m
Christopher Freeman
Independent Non-Executive Director5.5yrsAU$80.00k0.037% A$55.5k
Ron Eames
Independent Non-Executive Director14.33yrsAU$80.00k0.022% A$33.3k
Rebecca Frizelle
Non-Executive Director2.5yrsAU$80.00k0.037% A$55.5k
Vahid Saberi
Non-Executive Director0.83yrno datano data

7.1yrs

Average Tenure

63yo

Average Age

Experienced Board: SDG's board of directors are considered experienced (7.1 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

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


Key Information

  • Name: Sunland Group Limited
  • Ticker: SDG
  • Exchange: ASX
  • Founded: 1983
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: AU$148.085m
  • Shares outstanding: 133.41m
  • Website: https://www.sunlandgroup.com.au

Location

  • Sunland Group Limited
  • 140A Alice Street
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 1995
SDGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 1995

Biography

Sunland Group Limited develops and constructs residential properties in Australia. It operates through Residential Housing and Urban Development, and Multi-Storey segments. The Residential Housing and Urban Development segment is involved in land subdivision and medium density integrated housing developments, as well as provides project services. The Multi-Storey segment develops and sells medium-rise projects between 5 and 15 storeys, and high-rise developments above 15 storeys. Sunland Group Limited was founded in 1983 and is based in Brisbane, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 10:34
End of Day Share Price2020/07/15 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.