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

Second-rate dividend payer with limited growth.


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

-2.5%

ASX:SGP

0.8%

AU REITs

1.4%

AU Market


1 Year Return

3.8%

ASX:SGP

16.4%

AU REITs

1.9%

AU Market

SGP underperformed the REITs industry which returned 14.4% over the past year.

SGP outperformed the Market in Australia which returned 1.5% over the past year.


Share holder returns

SGPIndustryMarket
7 Day-2.5%0.8%1.4%
30 Day-6.3%-1.4%-3.3%
90 Day-2.9%1.4%0.8%
1 Year11.3%3.8%22.3%16.4%7.6%1.9%
3 Year5.2%-12.7%31.7%12.7%31.7%14.6%
5 Year37.8%2.1%98.5%54.3%38.9%8.0%

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 based on future cash flows and its price relative to the stock market?

17%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Stockland's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Stockland's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Stockland is overvalued based on earnings compared to the AU REITs industry average.

Stockland is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Stockland is poor value based on expected growth next year.


Price Based on Value of Assets

Stockland is good value based on assets compared to the AU REITs industry average.


Next Steps

Future Growth

How is Stockland expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Stockland's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

Stockland's earnings are expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).

Stockland's revenue growth is positive but not above the Australia market average.

Stockland's earnings growth is expected to exceed the Australia market average.

Stockland's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Stockland is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Stockland's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Stockland's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Stockland's 1-year earnings growth is negative, it can't be compared to the AU REITs industry average.


Return on Equity

Stockland has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Stockland used its assets less efficiently than the AU REITs industry average last year based on Return on Assets.


Return on Capital Employed

Stockland has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Stockland's financial position?


Financial Position Analysis

Stockland's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Stockland's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Stockland's level of debt (47.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (42% vs 47.9% today).

Debt is not well covered by operating cash flow (8.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

6.57%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Stockland's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.55%).

Stockland's dividend is above the markets top 25% of dividend payers in Australia (5.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (3225.8x coverage).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Mark Steinert 0

6.6yrs

Tenure

AU$4,438,632

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

Mark's remuneration is about average for companies of similar size in Australia.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.4yrs

Average Tenure

The average tenure for the Stockland management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.8yrs

Average Tenure

63yo

Average Age

The tenure for the Stockland board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellAU$3,184,28406 Aug 19
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Brandywine Global Investment Management, LLC
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Max PriceAU$3.60
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BuyAU$35,84005 Mar 19
Mark Steinert
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Role
Chief Executive Officer
MD, CEO & Executive Director
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Max PriceAU$3.58
BuyAU$14,32005 Mar 19
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Chief Executive Officer
MD, CEO & Executive Director
Shares4,000
Max PriceAU$3.58
SellAU$208,896,20812 Dec 18
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The Vanguard Group, Inc.
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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
BuyAU$721,91907 Oct 18
Mark Steinert
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MD, CEO & Executive Director
Shares173,330
Max PriceAU$4.17
BuyAU$252,64817 Sep 18
Melinda Conrad
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares60,000
Max PriceAU$4.21

Ownership Breakdown


Management Team

  • Mark Steinert

    MD, CEO & Executive Director

    • Tenure: 6.6yrs
    • Compensation: AU$4.44m
  • Tiernan O’Rourke

    Chief Financial Officer

    • Tenure: 5.8yrs
    • Compensation: AU$2.04m
  • Antoinette Plater

    Senior Manager of Investor Relations

    • Tenure: 0.0yrs
  • Andrew Whitson

    Group Executive & CEO of Stockland Communities

    • Tenure: 6.2yrs
    • Compensation: AU$2.02m
  • Darren Rehn

    Group Executive & Chief Investment Officer

    • Tenure: 5.8yrs
    • Compensation: AU$1.94m
  • Katherine Grace (44yo)

    General Counsel & Company Secretary

    • Tenure: 5.0yrs
    • Compensation: AU$1.40m
  • Robyn Elliott

    Chief Innovation

    • Tenure: 1.4yrs
    • Compensation: AU$588.46k
  • Larissa Webster

    Senior Manager of Media Relations & Internal Communications

    • Tenure: 0.0yrs
  • Louise Mason

    Group Executive & CEO of Commercial Property

    • Tenure: 1.2yrs
    • Compensation: AU$1.38m
  • Karen Lonergan

    Group Executive of People & Culture

    • Tenure: 0.4yrs

Board Members

  • David A. Lockhart (75yo)

    Member of the Advisory Board

    • Tenure: 11.2yrs
  • Margaret Ford (60yo)

    Member of the Advisory Board

    • Tenure: 11.2yrs
  • Barry Neil (70yo)

    Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: AU$227.70k
  • Christine O’Reilly (58yo)

    Non-Executive Director

    • Tenure: 1.0yrs
  • Tom Pockett (61yo)

    Non-Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: AU$500.00k
  • Ray Greenshields (72yo)

    Member of the Advisory Board

    • Tenure: 11.2yrs
  • Mark Steinert

    MD, CEO & Executive Director

    • Tenure: 6.6yrs
    • Compensation: AU$4.44m
  • Stephen Newton (66yo)

    Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$264.03k
  • Carol Schwartz (63yo)

    Non-Executive Director

    • Tenure: 9.1yrs
    • Compensation: AU$210.00k
  • Melinda Conrad (50yo)

    Non Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$21.10k

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$10.200b
  • 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 Analysis2019/08/22 10:33
End of Day Share Price2019/08/22 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.