ASX:SDG

Stock Analysis Report

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Market Cap

AU$345.1m

Last Updated

2021/08/02 08:01 UTC

Data Sources

Company Financials +

Executive Summary

Sunland Group Limited develops and constructs residential properties in Australia. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.

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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SDG's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.5%

SDG

0.9%

AU Real Estate

-0.1%

AU Market


1 Year Return

127.5%

SDG

20.0%

AU Real Estate

27.3%

AU Market

Return vs Industry: SDG exceeded the Australian Real Estate industry which returned 20% over the past year.

Return vs Market: SDG exceeded the Australian Market which returned 27.3% over the past year.


Shareholder returns

SDGIndustryMarket
7 Day3.5%0.9%-0.1%
30 Day10.9%4.1%0.9%
90 Day11.3%-1.0%4.5%
1 Year174.5%127.5%22.2%20.0%31.9%27.3%
3 Year94.7%48.0%-19.2%-25.6%32.7%16.8%
5 Year167.7%81.5%23.5%4.6%62.5%31.0%

Long-Term 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?

35.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SDG (A$2.65) is trading above our estimate of fair value (A$1.58)

Significantly Below Fair Value: SDG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SDG is poor value based on its PE Ratio (35.1x) compared to the Australian Real Estate industry average (24.7x).

PE vs Market: SDG is poor value based on its PE Ratio (35.1x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: SDG is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SDG's PB Ratio (1x) is in line with the AU Real Estate industry average.


Future Growth

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

34.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDG's forecast earnings growth (34.5% per year) is above the savings rate (1.9%).

Earnings vs Market: SDG's earnings (34.5% per year) are forecast to grow faster than the Australian market (13.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SDG's revenue is expected to decline over the next 3 years (-7.2% per year).

High Growth Revenue: SDG's revenue is forecast to decline over the next 3 years (-7.2% 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 (10.7%).


Past Performance

How has Sunland Group performed over the past 5 years?

-24.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDG has high quality earnings.

Growing Profit Margin: SDG's current net profit margins (3.4%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: SDG's earnings have declined by 24.7% 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 (-32.4%) over the past year, making it difficult to compare to the Real Estate industry average (-32.4%).


Return on Equity

High ROE: SDG's Return on Equity (3%) is considered low.


Financial Health

How is Sunland Group's financial position?


Financial Position Analysis

Short Term Liabilities: SDG's short term assets (A$294.1M) exceed its short term liabilities (A$24.1M).

Long Term Liabilities: SDG's short term assets (A$294.1M) exceed its long term liabilities (A$164.1M).


Debt to Equity History and Analysis

Debt Level: SDG's debt to equity ratio (43.4%) is considered high.

Reducing Debt: SDG's debt to equity ratio has reduced from 60.3% to 43.4% over the past 5 years.

Debt Coverage: SDG's debt is well covered by operating cash flow (46.7%).

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


Balance Sheet


Dividend

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

6.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SDG's dividend (6.04%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: SDG's dividend (6.04%) is in the top 25% of dividend payers in the Australian market (4.98%)


Stability and Growth of Payments

Stable Dividend: SDG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SDG's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (198.5%), SDG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SDG's dividends in 3 years are forecast to be well covered by earnings (40% payout ratio).


Next Steps

Management

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

8.2yrs

Average board tenure


CEO

Sahba Abedian (45 yo)

15.58yrs

Tenure

AU$826,500

Compensation

Mr. Sahba Abedian, LLB (Bond University) serves as the Managing Director since 2006 and Director since January 2001 at Sunland Group Ltd. He is a qualified Lawyer and was admitted into the Supreme Court of...


CEO Compensation Analysis

Compensation vs Market: Sahba's total compensation ($USD607.18K) is above average for companies of similar size in the Australian market ($USD457.27K).

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


Board Members

Experienced Board: SDG's board of directors are considered experienced (8.2 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$345.145m
  • Shares outstanding: 133.26m
  • Website: https://www.sunlandgroup.com.au

Location

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

Listings


Biography

Sunland Group Limited develops and constructs residential properties in Australia. It operates through Residential Housing and Urban Development, and Multi-Storey Development segments. The Residential Hous...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 08:01
End of Day Share Price2021/08/02 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.