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 Analysis

Good value average 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

Stable Share Price: SGP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.7%

SGP

5.0%

AU REITs

5.1%

AU Market


1 Year Return

-37.6%

SGP

-31.5%

AU REITs

-19.1%

AU Market

Return vs Industry: SGP underperformed the Australian REITs industry which returned -31.5% over the past year.

Return vs Market: SGP underperformed the Australian Market which returned -19% over the past year.


Shareholder returns

SGPIndustryMarket
7 Day12.7%5.0%5.1%
30 Day-49.7%-35.3%-18.7%
90 Day-49.1%-35.4%-25.7%
1 Year-33.7%-37.6%-28.3%-31.5%-15.4%-19.1%
3 Year-39.3%-49.7%-11.8%-24.4%-3.3%-16.6%
5 Year-29.9%-48.0%12.8%-12.3%6.9%-17.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGP (A$2.39) is trading below our estimate of fair value (A$8.53)

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


Price To Earnings Ratio

PE vs Industry: SGP is poor value based on its PE Ratio (11.1x) compared to the REITs industry average (9x).

PE vs Market: SGP is good value based on its PE Ratio (11.1x) compared to the Australian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SGP is poor value based on its PEG Ratio (7x)


Price to Book Ratio

PB vs Industry: SGP is good value based on its PB Ratio (0.6x) compared to the AU REITs industry average (0.8x).


Next Steps

Future Growth

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

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGP's forecast earnings growth (1.6% per year) is above the savings rate (1.1%).

Earnings vs Market: SGP's earnings (1.6% per year) are forecast to grow slower than the Australian market (10% per year).

High Growth Earnings: SGP's earnings are forecast to grow, but not significantly.

Revenue vs Market: SGP's revenue (2.2% per year) is forecast to grow slower than the Australian market (4.1% per year).

High Growth Revenue: SGP's revenue (2.2% 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 (8.3%).


Next Steps

Past Performance

How has Stockland performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGP has a large one-off loss of A$159.0M impacting its December 31 2019 financial results.

Growing Profit Margin: SGP's current net profit margins (17.3%) are lower than last year (24.1%).


Past Earnings Growth Analysis

Earnings Trend: SGP's earnings have declined by -9.5% 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 (-19.7%) over the past year, making it difficult to compare to the REITs industry average (1.7%).


Return on Equity

High ROE: SGP's Return on Equity (5.2%) is considered low.


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?

11.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGP's dividend (11.8%) is higher than the bottom 25% of dividend payers in the Australian market (3.17%).

High Dividend: SGP's dividend (11.8%) is in the top 25% of dividend payers in the Australian market (8.1%)


Stability and Growth of Payments

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 reasonable payout ratio (67.6%), 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 thoroughly covered by earnings (0.03% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Mark Steinert

7.25s

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 ($USD2.05M) is about average for companies of similar size in the Australian market ($USD2.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Steinert
MD, CEO & Executive Director7.25yrsAU$3.41m0.15% A$8.8m
Tiernan O'Rourke
Chief Financial Officer6.5yrsAU$1.77m0.019% A$1.1m
Katherine Grace
General Counsel & Company Secretary5.67yrsAU$1.23m0.011% A$625.1k
Andrew Whitson
Group Executive & CEO of Stockland Communities6.83yrsAU$1.67m0.016% A$935.4k
Louise Mason
Group Executive & CEO of Commercial Property1.83yrsAU$1.32m0.0016% A$88.6k
Darren Rehn
Group Executive & Chief Investment Officer6.5yrsAU$1.94mno 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 & Culture1.08yrsno datano data
Michelle Abbey
Head of Retail1.17yrsno datano data

6.1yrs

Average Tenure

Experienced Management: SGP's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Steinert
MD, CEO & Executive Director7.25yrsAU$3.41m0.15% A$8.8m
David A. Lockhart
Member of the Advisory Board11.83yrsno datano data
Margaret Ford
Member of the Advisory Board11.83yrsno datano data
Barry Neil
Non-Executive Director12.5yrsAU$227.70k0.0032% A$183.5k
Christine O'Reilly
Non-Executive Director1.67yrsAU$186.27k0.0021% A$119.3k
Thomas Pockett
Non-Executive Chairman3.5yrsAU$500.00k0.0021% A$119.3k
Raymond Greenshields
Member of the Advisory Board11.83yrsno datano data
Andrew Stevens
Non-Executive Director2.75yrsAU$195.00k0.0017% A$95.5k
Stephen Newton
Non-Executive Director3.83yrsAU$281.25k0.0017% A$95.5k
Melinda Conrad
Non Executive Director1.92yrsAU$221.98k0.0025% A$143.2k

5.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SGP's board of directors are considered experienced (5.5 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$5.683b
  • 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 communities, workplace and logistic assets and retirement living villages. Stockland has been rated as one of the most sustainable real estate companies in the world for the last five years by the Dow Jones Sustainability World Index (DJSI). Stockland is also an Employer of Choice for Gender Equality, as recognised by the Workplace Gender Equality Agency. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 10:42
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.