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

6 star dividend payer with moderate growth potential.


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

2.0%

SGP

0.7%

AU REITs

1.3%

AU Market


1 Year Return

-8.5%

SGP

-9.7%

AU REITs

-1.7%

AU Market

Return vs Industry: SGP exceeded the Australian REITs industry which returned -9.8% over the past year.

Return vs Market: SGP underperformed the Australian Market which returned -1.8% over the past year.


Shareholder returns

SGPIndustryMarket
7 Day2.0%0.7%1.3%
30 Day17.9%12.4%10.4%
90 Day18.5%12.8%8.8%
1 Year-3.0%-8.5%-6.0%-9.7%1.7%-1.7%
3 Year19.2%-1.5%24.4%7.6%23.1%7.9%
5 Year54.9%14.6%61.7%25.8%57.2%26.0%

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?

26.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGP (A$4.62) is trading below our estimate of fair value (A$6.26)

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 is overvalued based on its PB Ratio (1.2x) compared to the AU REITs industry average (1.1x).


Next Steps

Future Growth

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

23.0%

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 (2.3%).

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 (0.7% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: SGP's revenue (0.7% 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 (8.1%).


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 (6.8%).


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?

5.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGP's dividend (5.22%) is higher than the bottom 25% of dividend payers in the Australian market (2.05%).

High Dividend: SGP's dividend (5.22%) is in the top 25% of dividend payers in the Australian market (5.05%)


Stability and Growth of Payments

Stable Dividend: SGP's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.4%), SGP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SGP's dividends in 3 years are forecast to be covered by earnings (73.1% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Mark Steinert

7.83yrs

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 ($USD2.44M) is about average for companies of similar size in the Australian market ($USD2.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Steinert
MD, CEO & Executive Director7.83yrsAU$3.30m0.17%
A$ 18.6m
Tiernan O'Rourke
Chief Financial Officer7.08yrsAU$1.51m0%
A$ 0
Katherine Grace
General Counsel & Company Secretary6.25yrsAU$1.03m0%
A$ 0
Andrew Whitson
Group Executive & CEO of Stockland Communities7.42yrsAU$1.35m0%
A$ 0
Louise Mason
Group Executive & CEO of Commercial Property2.42yrsAU$1.37m0%
A$ 0
Darren Rehn
Group Executive & Chief Investment Officer7.08yrsAU$1.94mno data
Sharmila Tsourdalakis
Chief Innovation0.58yrno 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 & Culture1.67yrsno datano data
Michelle Abbey
Head of Retail1.75yrsno datano data
Sarah Neilsen
Head of Placemakingno datano datano data

6.3yrs

Average Tenure

Experienced Management: SGP's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Steinert
MD, CEO & Executive Director7.83yrsAU$3.30m0.17%
A$ 18.6m
Barry Neil
Independent Non-Executive Director13.08yrsAU$220.07k0.0032%
A$ 354.3k
Christine O'Reilly
Independent Non-Executive Director2.25yrsAU$222.29k0.0021%
A$ 231.1k
Thomas Pockett
Independent Non-Executive Chairman4.08yrsAU$483.24k0.0021%
A$ 231.1k
Kathryn McKenzie
Non-Executive Director0.92yrAU$106.86k0.00084%
A$ 92.4k
Andrew Stevens
Independent Non-Executive Director3.33yrsAU$196.68k0.0017%
A$ 184.9k
Stephen Newton
Independent Non-Executive Director4.42yrsAU$271.12k0.0017%
A$ 184.9k
Laurence Brindle
Non-Executive Directorno datano datano data
Melinda Conrad
Independent Non Executive Director2.5yrsAU$202.96k0.0025%
A$ 277.3k

3.7yrs

Average Tenure

62yo

Average Age

Experienced Board: SGP's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SGP 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$11.005b
  • 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 Analysis2020/11/28 07:02
End of Day Share Price2020/11/27 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.