ASX:SGP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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

Average dividend payer 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

SGP

-2.3%

AU REITs

-2.0%

AU Market


1 Year Return

-25.8%

SGP

-25.7%

AU REITs

-11.0%

AU Market

Return vs Industry: SGP matched the Australian REITs industry which returned -25.7% over the past year.

Return vs Market: SGP underperformed the Australian Market which returned -11% over the past year.


Shareholder returns

SGPIndustryMarket
7 Day0.6%-2.3%-2.0%
30 Day-4.3%-4.1%-1.6%
90 Day24.7%8.1%11.3%
1 Year-21.4%-25.8%-22.5%-25.7%-7.4%-11.0%
3 Year-6.1%-22.4%10.0%-5.2%14.8%-0.4%
5 Year9.2%-19.2%29.6%0.8%32.4%3.6%

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?

45.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGP (A$3.33) is trading below our estimate of fair value (A$6.11)

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 (15.4x) compared to the AU REITs industry average (10.3x).

PE vs Market: SGP's PE Ratio (15.4x) is in line with the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: SGP is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: SGP's PB Ratio (0.8x) 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?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGP's forecast earnings growth (3.1% per year) is above the savings rate (2.3%).

Earnings vs Market: SGP's earnings (3.1% per year) are forecast to grow slower than the Australian market (14.7% per year).

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

Revenue vs Market: SGP's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: SGP's revenue is forecast to decline over the next 3 years (-1.1% 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?

-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 (3.3%).


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?


Financial Position Analysis

Short Term Liabilities: SGP's short term assets (A$1.5B) do not cover its short term liabilities (A$4.2B).

Long Term Liabilities: SGP's short term assets (A$1.5B) do not cover its long term liabilities (A$5.1B).


Debt to Equity History and Analysis

Debt Level: SGP's debt to equity ratio (47.5%) is considered high.

Reducing Debt: SGP's debt to equity ratio has increased from 37.8% to 47.5% over the past 5 years.

Debt Coverage: SGP's debt is well covered by operating cash flow (20.6%).

Interest Coverage: SGP's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Next Steps

Dividend

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

7.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGP's dividend (7.24%) is higher than the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: SGP's dividend (7.24%) is in the top 25% of dividend payers in the Australian market (6.68%)


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 covered by earnings (69.1% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Mark Steinert

7.58yrs

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 ($USD2.42M) is about average for companies of similar size in the Australian market ($USD3.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Steinert
MD, CEO & Executive Director7.58yrsAU$3.41m0.15%
A$ 11.8m
Tiernan O'Rourke
Chief Financial Officer6.83yrsAU$1.77m0.019%
A$ 1.5m
Katherine Grace
General Counsel & Company Secretary6yrsAU$1.23m0.011%
A$ 836.9k
Andrew Whitson
Group Executive & CEO of Stockland Communities7.17yrsAU$1.67m0.016%
A$ 1.3m
Louise Mason
Group Executive & CEO of Commercial Property2.17yrsAU$1.32m0.0016%
A$ 118.7k
Darren Rehn
Group Executive & Chief Investment Officer6.83yrsAU$1.94mno data
Sharmila Tsourdalakis
Chief Innovation0.33yrno 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 & Culture1.42yrsno datano data
Michelle Abbey
Head of Retail1.5yrsno datano data
Sarah Neilsen
Head of Placemakingno datano datano data

6.0yrs

Average Tenure

Experienced Management: SGP's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Steinert
MD, CEO & Executive Director7.58yrsAU$3.41m0.15%
A$ 11.8m
David A. Lockhart
Member of the Advisory Board12.17yrsno datano data
Margaret Ford
Member of the Advisory Board12.17yrsno datano data
Barry Neil
Independent Non-Executive Director12.83yrsAU$227.70k0.0032%
A$ 245.8k
Christine O'Reilly
Independent Non-Executive Director2yrsAU$186.27k0.0021%
A$ 159.8k
Thomas Pockett
Independent Non-Executive Chairman3.83yrsAU$500.00k0.0021%
A$ 159.8k
Raymond Greenshields
Member of the Advisory Board12.17yrsno datano data
Kathryn McKenzie
Non-Executive Director0.67yrno data0.00084%
A$ 63.9k
Andrew Stevens
Independent Non-Executive Director3.08yrsAU$195.00k0.0017%
A$ 127.8k
Stephen Newton
Independent Non-Executive Director4.17yrsAU$281.25k0.0017%
A$ 127.8k
Melinda Conrad
Independent Non Executive Director2.25yrsAU$221.98k0.0025%
A$ 191.7k

4.2yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SGP's board of directors are considered experienced (4.2 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$7.609b
  • 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 Analysis2020/08/04 10:34
End of Day Share Price2020/08/04 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.