ASX:SGP

Stock Analysis Report

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Executive Summary

Stockland (ASX:SGP) was founded in 1952 and has grown to become one of Australia’s largest diversified property groups – owning, developing and managing a large portfolio of shopping centres, residential communities, workplace and logistic assets and retirement living villages. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

4.4%

SGP

0.8%

AU REITs

2.0%

AU Market


1 Year Return

-9.7%

SGP

-14.6%

AU REITs

-0.4%

AU Market

Return vs Industry: SGP exceeded the Australian REITs industry which returned -14.6% over the past year.

Return vs Market: SGP underperformed the Australian Market which returned -0.4% over the past year.


Shareholder returns

SGPIndustryMarket
7 Day4.4%0.8%2.0%
30 Day5.3%-2.3%4.4%
90 Day13.5%4.4%12.1%
1 Year-4.5%-9.7%-11.2%-14.6%3.0%-0.4%
3 Year28.5%6.6%25.6%9.1%27.3%11.6%
5 Year49.5%11.0%50.5%17.7%70.2%35.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGP (A$4.54) is trading below our estimate of fair value (A$7.45)

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


Price To Earnings Ratio

PE vs Industry: SGP is unprofitable, so we can't compare its PE Ratio to the AU REITs industry average.

PE vs Market: SGP is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SGP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SGP's PB Ratio (1.2x) is in line with the AU REITs industry average.


Next Steps

Future Growth

How is Stockland forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: SGP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SGP's is expected to become profitable in the next 3 years.

Revenue vs Market: SGP's revenue (2.1% per year) is forecast to grow slower than the Australian market (5.2% per year).

High Growth Revenue: SGP's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGP's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Stockland performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGP is currently unprofitable.

Growing Profit Margin: SGP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SGP is unprofitable, and losses have increased over the past 5 years at a rate of 21.2% per year.

Accelerating Growth: Unable to compare SGP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SGP is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-0.4%).


Return on Equity

High ROE: SGP has a negative Return on Equity (-0.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Stockland's financial position?


Financial Position Analysis

Short Term Liabilities: SGP's short term assets (A$1.8B) do not cover its short term liabilities (A$3.8B).

Long Term Liabilities: SGP's short term assets (A$1.8B) do not cover its long term liabilities (A$6.2B).


Debt to Equity History and Analysis

Debt Level: SGP's debt to equity ratio (58.3%) is considered high.

Reducing Debt: SGP's debt to equity ratio has increased from 40.6% to 58.3% over the past 5 years.

Debt Coverage: SGP's debt is well covered by operating cash flow (21.1%).

Interest Coverage: SGP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Stockland current dividend yield, its reliability and sustainability?

5.64%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SGP'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 SGP's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SGP'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?

6.4yrs

Average management tenure


CEO

Mark Steinert

8yrs

Tenure

AU$3,300,402

Compensation

Mr. Mark Andrew Steinert, BAppSc, G Dip App Fin & Inv (Sec Inst), F Fin, AAPI, has been Chief Executive Officer, Managing Director and Director of Stockland Trust Management Limited and Stockland since Jan...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.56M) is about average for companies of similar size in the Australian market ($USD2.57M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Steinert
MD, CEO & Executive Director8yrsAU$3.30m0.17%
A$ 17.8m
Tiernan O'Rourke
Chief Financial Officer7.25yrsAU$1.51m0%
A$ 0
Katherine Grace
General Counsel & Company Secretary6.42yrsAU$1.03m0%
A$ 0
Andrew Whitson
Group Executive & CEO of Stockland Communities7.58yrsAU$1.35m0%
A$ 0
Louise Mason
Group Executive & CEO of Commercial Property2.58yrsAU$1.37m0%
A$ 0
Darren Rehn
Group Executive & Chief Investment Officer7.25yrsAU$1.94mno data
Sharmila Tsourdalakis
Chief Innovation0.75yrno datano data
Melanie Buffier
General Manager of Investor Relationsno datano datano data
Larissa Webster
Senior Manager of Media Relations & Internal Communicationsno datano datano data
Karen Lonergan
Group Executive of People & Culture1.83yrsno datano data
Michelle Abbey
Head of Retail1.92yrsno datano data
Sarah Neilsen
Head of Placemakingno datano datano data

6.4yrs

Average Tenure

Experienced Management: SGP's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Steinert
MD, CEO & Executive Director8yrsAU$3.30m0.17%
A$ 17.8m
Barry Neil
Independent Non-Executive Director13.25yrsAU$220.07k0.0032%
A$ 339.0k
Christine O'Reilly
Independent Non-Executive Director2.42yrsAU$222.29k0.0021%
A$ 221.1k
Thomas Pockett
Independent Non-Executive Chairman4.25yrsAU$483.24k0.0021%
A$ 221.1k
Kathryn McKenzie
Non-Executive Director1.08yrsAU$106.86k0.00084%
A$ 88.4k
Andrew Stevens
Independent Non-Executive Director3.5yrsAU$196.68k0.0017%
A$ 176.9k
Stephen Newton
Independent Non-Executive Director4.58yrsAU$271.12k0.0017%
A$ 176.9k
Laurence Brindle
Non-Executive Director0.17yrno datano data
Melinda Conrad
Independent Non Executive Director2.67yrsAU$202.96k0.0025%
A$ 265.3k

3.5yrs

Average Tenure

62yo

Average Age

Experienced Board: SGP's board of directors are considered experienced (3.5 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

Stockland's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stockland
  • Ticker: SGP
  • Exchange: ASX
  • Founded: 1952
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: AU$10.528b
  • Shares outstanding: 2.38b
  • Website: https://www.stockland.com.au

Number of Employees


Location

  • Stockland
  • 133 Castlereagh Street
  • Level 25
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGPASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDJan 1992
STKA.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDJan 1992
LN1DB (Deutsche Boerse AG)YesStapled SecuritiesDEEURJan 1992
SGPCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDJan 1992

Biography

Stockland (ASX:SGP) was founded in 1952 and has grown to become one of Australia’s largest diversified property groups – owning, developing and managing a large portfolio of shopping centres, residential c...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 07:02
End of Day Share Price2021/01/22 00:00
Earnings2020/06/30
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.