DB:W02

Stock Analysis Report

Washington Prime Group

Executive Summary

Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties.


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Washington Prime Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: W02's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-15.6%

W02

-6.3%

DE REITs

-9.1%

DE Market


1 Year Return

-56.0%

W02

35.1%

DE REITs

2.9%

DE Market

Return vs Industry: W02 underperformed the German REITs industry which returned 35.1% over the past year.

Return vs Market: W02 underperformed the German Market which returned 2.9% over the past year.


Shareholder returns

W02IndustryMarket
7 Day-15.6%-6.3%-9.1%
30 Day-24.5%2.0%-7.2%
90 Day-46.0%9.4%-6.5%
1 Year-44.1%-56.0%39.4%35.1%6.1%2.9%
3 Year-58.4%-75.0%31.3%12.6%3.5%-5.6%
5 Year-71.6%-85.4%32.8%4.2%8.0%-6.8%

Price Volatility Vs. Market

How volatile is Washington Prime Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Washington Prime Group undervalued compared to its fair value and its price relative to the market?

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: W02 (€2.16) is trading below our estimate of fair value (€3.6)

Significantly Below Fair Value: W02 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: W02 is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: W02 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate W02's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: W02 is good value based on its PB Ratio (0.8x) compared to the DE REITs industry average (1.6x).


Next Steps

Future Growth

How is Washington Prime Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-27.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: W02 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: W02 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: W02 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: W02's revenue (0.6% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: W02's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if W02's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Washington Prime Group performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: W02 is currently unprofitable.

Growing Profit Margin: W02 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: W02 is unprofitable, but has reduced losses over the past 5 years at a rate of 5.2% per year.

Accelerating Growth: Unable to compare W02's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: W02 is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (37.6%).


Return on Equity

High ROE: W02 has a negative Return on Equity (0.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is Washington Prime Group'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: W02 has a high level of physical assets or inventory.

Debt Coverage by Assets: W02's debt is not covered by short term assets (assets are 0x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: W02 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: W02 has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: W02's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if W02 has a sufficient allowance for bad loans.

Low Risk Liabilities: W02 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if W02 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: W02 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if W02 has an appropriate level of bad loans.


Next Steps

Dividend

What is Washington Prime Group's current dividend yield, its reliability and sustainability?

40.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: W02's dividend (40%) is higher than the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: W02's dividend (40%) is in the top 25% of dividend payers in the German market (3.92%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, W02 has been paying a dividend for less than 10 years.

Growing Dividend: W02 has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.2%), W02's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: W02's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Lou Conforti (54yo)

3.4yrs

Tenure

US$4,826,966

Compensation

Mr. Louis G. Conforti, also known as Lou, serves as the Chief Executive Officer of Washington Prime Group Inc. since October 6, 2016 and has been its Director since May 27, 2014 and previously served as an ...


CEO Compensation Analysis

Compensation vs Market: Lou's total compensation ($USD4.83M) is above average for companies of similar size in the German market ($USD811.49K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Louis Conforti
CEO & Director3.4yrsUS$4.83m0.47% $2.1m
Mark Yale
Executive VP & CFO5.1yrsUS$1.66m0.18% $830.4k
Robert Demchak
Executive VP3.7yrsUS$1.40m0.080% $366.2k
Melissa Indest
Executive VP of Finance & Chief Accounting Officer5.1yrsUS$682.39k0.046% $208.8k
Cheryl VanPatten
Senior VP & Chief Information Officer4.3yrsno datano data
Kimberly A. Green
Vice President of Investor Relations & Corporate Communications0yrsno datano data
Pagle Helterbrand
Senior VP & Chief Human Resource Officer3.4yrsno datano data
Joshua Lindimore
Executive VP & Head of Leasing2.3yrsno data0.021% $94.9k
Lauren Kelly
Senior Vice President2.3yrsno datano data
Amy Jonas
Senior Vice President0yrsno datano data

3.5yrs

Average Tenure

53yo

Average Age

Experienced Management: W02's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Louis Conforti
CEO & Director3.4yrsUS$4.83m0.47% $2.1m
John Dillon
Independent Director3.7yrsUS$230.01kno data
Robert Laikin
Non-Executive Chairman of the Board3.7yrsUS$505.01k0.037% $169.0k
Sheryl von Blucher
Independent Director3.5yrsUS$230.01k0.013% $61.1k
J. Birge
Independent Director2.8yrsUS$285.01k0.015% $69.1k
Jacquelyn Soffer
Independent Director5.8yrsUS$230.01k0.054% $244.2k
John Levy
Independent Director3.7yrsUS$230.01kno data

3.7yrs

Average Tenure

56yo

Average Age

Experienced Board: W02'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: 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 been diluted in the past year, with total shares outstanding growing by 4%.


Top Shareholders

Company Information

Washington Prime Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Washington Prime Group Inc.
  • Ticker: W02
  • Exchange: DB
  • Founded: 2014
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$500.170m
  • Market Cap: US$384.225m
  • Listing Market Cap: US$455.705m
  • Shares outstanding: 221.31m
  • Website: https://www.washingtonprime.com

Number of Employees


Location

  • Washington Prime Group Inc.
  • 180 East Broad Street
  • Columbus
  • Ohio
  • 43215
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WPGNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2014
W02DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2014
0LTALSE (London Stock Exchange)YesCommon StockGBUSDMay 2014
WPG.PRHNYSE (New York Stock Exchange)REDEEMABLE PFD HUSUSDJan 2015
WPG.PRINYSE (New York Stock Exchange)REDEEMABLE PFD IUSUSDJan 2015

Biography

Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties. The Company combines a national real estate portfolio with its expertise across the entire shopping center sector to increase cash flow through rigorous management of assets and provide new opportunities to retailers looking for growth throughout the U.S. Washington Prime Group and Polaris Fashion Place are registered trademarks of the Company. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 22:40
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.