ASX:SGP

Stock Analysis Report

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.

Snowflake

Fundamentals

Moderate growth potential second-rate dividend payer.


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


Market Performance


7 Day Return

4.8%

SGP

1.5%

AU REITs

-0.2%

AU Market


1 Year Return

22.9%

SGP

19.5%

AU REITs

10.5%

AU Market

Return vs Industry: SGP exceeded the Australian REITs industry which returned 19.5% over the past year.

Return vs Market: SGP exceeded the Australian Market which returned 10.5% over the past year.


Shareholder returns

SGPIndustryMarket
7 Day4.8%1.5%-0.2%
30 Day8.4%1.9%-1.4%
90 Day2.8%-0.7%-1.0%
1 Year31.7%22.9%25.5%19.5%16.9%10.5%
3 Year26.1%4.6%50.2%28.5%36.9%18.6%
5 Year55.0%14.9%100.2%55.6%50.2%16.2%

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?

8.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGP (A$4.78) is trading below our estimate of fair value (A$5.21)

Significantly Below Fair Value: SGP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SGP is poor value based on its PE Ratio (36.9x) compared to the REITs industry average (16.3x).

PE vs Market: SGP is poor value based on its PE Ratio (36.9x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: SGP is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SGP is good value based on its PB Ratio (1.2x) compared to the AU REITs industry average (1.2x).


Next Steps

Future Growth

How is Stockland forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGP's forecast earnings growth (22.5% per year) is above the savings rate (2.3%).

Earnings vs Market: SGP's earnings (22.5% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: SGP's revenue (1.5% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: SGP's revenue (1.5% 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 (7.4%).


Next Steps

Past Performance

How has Stockland performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SGP's earnings have declined by -0.5% per year over the past 5 years.

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

Earnings vs Industry: SGP had negative earnings growth (-69.7%) over the past year, making it difficult to compare to the REITs industry average (-16.4%).


Return on Equity

High ROE: SGP's Return on Equity (3.2%) is considered low.


Return on Assets

ROA vs Industry: SGP's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: SGP has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Stockland'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: SGP has a low level of unsold assets or inventory.

Debt Coverage by Assets: SGP's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: SGP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SGP has a sufficient allowance for bad loans.

Low Risk Liabilities: SGP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SGP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SGP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SGP has an appropriate level of bad loans.


Next Steps

Dividend

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

5.90%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%2.4%markettop25%5.6%industryaverage4.4%forecastin3Years5.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SGP's dividend (5.9%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: SGP's dividend (5.9%) is in the top 25% of dividend payers in the Australian market (5.61%)

Stable Dividend: SGP's dividend payments have been volatile in the past 10 years.

Growing Dividend: SGP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (165.7%), SGP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SGP's dividends in 3 years are forecast to be thoroughly covered by earnings (0.03% payout ratio).


Next Steps

Management

What is the CEO of Stockland's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Mark Steinert 0

6.8yrs

Tenure

AU$3,406,427

Compensation

Mr. Mark Andrew Steinert, BAppSc, G Dip App Fin & Inv (Sec Inst), F Fin, AAPI has been Managing Director and Chief Executive Officer of Stockland since January 29, 2013 and has been its Director since Janu ...


CEO Compensation Analysis

Compensation vs. Market: Mark's total compensation ($USD2.34M) is about average for companies of similar size in the Australian market ($USD2.81M).

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


Management Age and Tenure

5.6yrs

Average Tenure

Experienced Management: SGP's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

63yo

Average Age

Experienced Board: SGP's board of directors are considered experienced (8 years average tenure).


Insider Trading

Insider Buying: SGP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$613,40516 Oct 19
Mark Steinert
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares134,145
Max PriceAU$4.57
BuyAU$4,483,82606 Aug 19
Legg Mason, Inc.
EntityCompany
Shares960,261
Max PriceAU$4.74
SellAU$3,184,28406 Aug 19
Legg Mason, Inc.
EntityCompany
Shares669,140
Max PriceAU$4.78
BuyAU$4,384,22102 Aug 19
Legg Mason, Inc.
EntityCompany
Shares951,271
Max PriceAU$4.68
SellAU$2,656,04302 Aug 19
Legg Mason, Inc.
EntityCompany
Shares569,136
Max PriceAU$4.67
SellAU$8,596,33724 Jul 19
Legg Mason, Inc.
EntityCompany
Shares1,920,266
Max PriceAU$4.48
BuyAU$4,666,48624 Jul 19
Legg Mason, Inc.
EntityCompany
Shares1,060,029
Max PriceAU$4.40
BuyAU$5,40524 Jul 19
Brandywine Global Investment Management, LLC
EntityCompany
Shares1,260
Max PriceAU$4.29
SellAU$16,546,59527 Jun 19
Legg Mason, Inc.
EntityCompany
Shares3,973,015
Max PriceAU$4.16
BuyAU$215,72227 Jun 19
QS Investors LLC
EntityCompany
Shares56,769
Max PriceAU$3.80
BuyAU$22,261,95627 Jun 19
Legg Mason, Inc.
EntityCompany
Shares5,048,289
Max PriceAU$4.41
BuyAU$86427 Jun 19
Brandywine Global Investment Management, LLC
EntityCompany
Shares240
Max PriceAU$3.60
BuyAU$39,73616 Apr 19
Legg Mason, Inc.
EntityCompany
Shares10,302
Max PriceAU$3.87
SellAU$5,628,00716 Apr 19
Legg Mason, Inc.
EntityCompany
Shares1,449,198
Max PriceAU$3.93
SellAU$8,354,12802 Apr 19
Legg Mason, Inc.
EntityCompany
Shares2,202,669
Max PriceAU$3.79
BuyAU$13,505,85202 Apr 19
Legg Mason, Inc.
EntityCompany
Shares3,591,472
Max PriceAU$3.76
BuyAU$35,84005 Mar 19
Mark Steinert
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares10,000
Max PriceAU$3.58
BuyAU$14,32005 Mar 19
Mark Steinert
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares4,000
Max PriceAU$3.58
SellAU$208,896,20812 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares42,740,117
Max PriceAU$4.89
BuyAU$333,589,23412 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares67,120,563
Max PriceAU$4.97
BuyAU$256,76106 Dec 18
Mark Steinert
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares68,000
Max PriceAU$3.78
BuyAU$248,53327 Nov 18
Mark Steinert
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares68,000
Max PriceAU$3.65

Ownership Breakdown


Management Team

  • Mark Steinert

    MD, CEO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: AU$3.41m
  • Tiernan O’Rourke

    Chief Financial Officer

    • Tenure: 6yrs
    • Compensation: AU$1.77m
  • Antoinette Plater

    Senior Manager of Investor Relations

    • Tenure: 0yrs
  • Andrew Whitson

    Group Executive & CEO of Stockland Communities

    • Tenure: 6.3yrs
    • Compensation: AU$1.67m
  • Darren Rehn

    Group Executive & Chief Investment Officer

    • Tenure: 6yrs
    • Compensation: AU$1.94m
  • Katherine Grace (44yo)

    General Counsel & Company Secretary

    • Tenure: 5.2yrs
    • Compensation: AU$1.23m
  • Robyn Elliott

    Chief Innovation

    • Tenure: 1.6yrs
    • Compensation: AU$588.46k
  • Larissa Webster

    Senior Manager of Media Relations & Internal Communications

    • Tenure: 0yrs
  • Louise Mason

    Group Executive & CEO of Commercial Property

    • Tenure: 1.3yrs
    • Compensation: AU$1.32m
  • Karen Lonergan

    Group Executive of People & Culture

    • Tenure: 0.6yrs

Board Members

  • David A. Lockhart (75yo)

    Member of the Advisory Board

    • Tenure: 11.3yrs
  • Margaret Ford (60yo)

    Member of the Advisory Board

    • Tenure: 11.3yrs
  • Barry Neil (70yo)

    Non-Executive Director

    • Tenure: 12yrs
    • Compensation: AU$227.70k
  • Christine O’Reilly (58yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$186.27k
  • Tom Pockett (61yo)

    Non-Executive Chairman

    • Tenure: 3yrs
    • Compensation: AU$500.00k
  • Ray Greenshields (72yo)

    Member of the Advisory Board

    • Tenure: 11.3yrs
  • Mark Steinert

    MD, CEO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: AU$3.41m
  • Stephen Newton (66yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$281.25k
  • Carol Schwartz (63yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$225.08k
  • Melinda Conrad (50yo)

    Non Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$221.98k

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$11.698b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 10:33
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.