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SGRO

SEGRO LSE:SGRO Stock Report

Last Price

UK£7.17

Market Cap

UK£8.7b

7D

-10.9%

1Y

-40.0%

Updated

29 Sep, 2022

Data

Company Financials +
SGRO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health2/6
Dividends5/6

SGRO Stock Overview

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property.

SEGRO Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SEGRO
Historical stock prices
Current Share PriceUK£7.17
52 Week HighUK£15.08
52 Week LowUK£6.69
Beta0.62
1 Month Change-25.58%
3 Month Change-25.00%
1 Year Change-40.00%
3 Year Change-9.88%
5 Year Change34.27%
Change since IPO-70.97%

Recent News & Updates

Shareholder Returns

SGROGB REITsGB Market
7D-10.9%-11.3%-4.1%
1Y-40.0%-31.1%-16.2%

Return vs Industry: SGRO underperformed the UK REITs industry which returned -29.8% over the past year.

Return vs Market: SGRO underperformed the UK Market which returned -14.9% over the past year.

Price Volatility

Is SGRO's price volatile compared to industry and market?
SGRO volatility
SGRO Average Weekly Movement5.6%
REITs Industry Average Movement4.3%
Market Average Movement5.3%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.8%

Stable Share Price: SGRO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SGRO's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1920385David John Sleathhttps://www.segro.com

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages 8.1 million square metres of space (88 million square feet) valued at £13.3 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in seven other European countries.

SEGRO Fundamentals Summary

How do SEGRO's earnings and revenue compare to its market cap?
SGRO fundamental statistics
Market CapUK£8.67b
Earnings (TTM)UK£4.08b
Revenue (TTM)UK£630.00m

2.1x

P/E Ratio

13.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SGRO income statement (TTM)
RevenueUK£630.00m
Cost of RevenueUK£143.00m
Gross ProfitUK£487.00m
Other Expenses-UK£3.59b
EarningsUK£4.08b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Feb 17, 2023

Earnings per share (EPS)3.37
Gross Margin77.30%
Net Profit Margin646.98%
Debt/Equity Ratio28.0%

How did SGRO perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

57%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SGRO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SGRO?

Other financial metrics that can be useful for relative valuation.

SGRO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue20.3x
Enterprise Value/EBITDA29.2x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does SGRO's PE Ratio compare to its peers?

SGRO PE Ratio vs Peers
The above table shows the PE ratio for SGRO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average2.6x
BBOX Tritax Big Box REIT
2.3x-0.8%UK£2.4b
LMP LondonMetric Property
2.2x-38.9%UK£1.6b
WHR Warehouse REIT
2.3xn/aUK£447.8m
SHED Urban Logistics REIT
3.4x-24.9%UK£592.3m
SGRO SEGRO
2.1x-21.1%UK£8.7b

Price-To-Earnings vs Peers: SGRO is good value based on its Price-To-Earnings Ratio (2.1x) compared to the peer average (2.6x).


Price to Earnings Ratio vs Industry

How does SGRO's PE Ratio compare vs other companies in the GB REITs Industry?

Price-To-Earnings vs Industry: SGRO is good value based on its Price-To-Earnings Ratio (2.1x) compared to the UK REITs industry average (5.6x)


Price to Earnings Ratio vs Fair Ratio

What is SGRO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SGRO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.1x
Fair PE Ratio11.9x

Price-To-Earnings vs Fair Ratio: SGRO is good value based on its Price-To-Earnings Ratio (2.1x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).


Share Price vs Fair Value

What is the Fair Price of SGRO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SGRO (£7.17) is trading below our estimate of fair value (£10.56)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-21.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGRO's earnings are forecast to decline over the next 3 years (-21.1% per year).

Earnings vs Market: SGRO's earnings are forecast to decline over the next 3 years (-21.1% per year).

High Growth Earnings: SGRO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SGRO's revenue (7.7% per year) is forecast to grow faster than the UK market (4.5% per year).

High Growth Revenue: SGRO's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGRO's Return on Equity is forecast to be low in 3 years time (3.4%).


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Past Performance

How has SEGRO performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


37.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SGRO has a high level of non-cash earnings.

Growing Profit Margin: SGRO's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: SGRO's earnings have grown significantly by 37.9% per year over the past 5 years.

Accelerating Growth: SGRO's earnings growth over the past year (61.2%) exceeds its 5-year average (37.9% per year).

Earnings vs Industry: SGRO earnings growth over the past year (61.2%) underperformed the REITs industry 126.7%.


Return on Equity

High ROE: SGRO's Return on Equity (27.8%) is considered high.


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Financial Health

How is SEGRO's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SGRO's short term assets (£445.0M) do not cover its short term liabilities (£627.0M).

Long Term Liabilities: SGRO's short term assets (£445.0M) do not cover its long term liabilities (£4.5B).


Debt to Equity History and Analysis

Debt Level: SGRO's net debt to equity ratio (27.4%) is considered satisfactory.

Reducing Debt: SGRO's debt to equity ratio has reduced from 35.9% to 28% over the past 5 years.

Debt Coverage: SGRO's debt is not well covered by operating cash flow (8%).

Interest Coverage: SGRO's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.49%

Current Dividend Yield

Dividend Yield vs Market

SEGRO Dividend Yield vs Market
How does SEGRO dividend yield compare to the market?
SegmentDividend Yield
Company (SEGRO)3.5%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.3%
Industry Average (REITs)5.0%
Analyst forecast in 3 Years (SEGRO)4.2%

Notable Dividend: SGRO's dividend (3.49%) is higher than the bottom 25% of dividend payers in the UK market (2.12%).

High Dividend: SGRO's dividend (3.49%) is low compared to the top 25% of dividend payers in the UK market (6.08%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (56.5%), SGRO's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (93.3%), SGRO's dividend payments are covered by cash flows.


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Management

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

10.8yrs

Average management tenure


CEO

David John Sleath (61 yo)

16.67yrs

Tenure

UK£5,216,000

Compensation

Mr. David John Rivers Sleath, OBE, has been the Chief Executive Officer at SEGRO Plc since April 28, 2011. Mr. Sleath serves as Non-Executive Director of RS Group plc (formerly known as Electrocomponents p...


CEO Compensation Analysis

David John Sleath's Compensation vs SEGRO Earnings
How has David John Sleath's remuneration changed compared to SEGRO's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

UK£4b

Mar 31 2022n/an/a

UK£4b

Dec 31 2021UK£5mUK£721k

UK£4b

Sep 30 2021n/an/a

UK£3b

Jun 30 2021n/an/a

UK£3b

Mar 31 2021n/an/a

UK£2b

Dec 31 2020UK£4mUK£663k

UK£1b

Sep 30 2020n/an/a

UK£1b

Jun 30 2020n/an/a

UK£678m

Mar 31 2020n/an/a

UK£768m

Dec 31 2019UK£7mUK£678k

UK£858m

Sep 30 2019n/an/a

UK£880m

Jun 30 2019n/an/a

UK£901m

Mar 31 2019n/an/a

UK£982m

Dec 31 2018UK£4mUK£633k

UK£1b

Sep 30 2018n/an/a

UK£1b

Jun 30 2018n/an/a

UK£1b

Mar 31 2018n/an/a

UK£1b

Dec 31 2017UK£4mUK£615k

UK£953m

Sep 30 2017n/an/a

UK£781m

Jun 30 2017n/an/a

UK£609m

Mar 31 2017n/an/a

UK£514m

Dec 31 2016UK£2mUK£597k

UK£418m

Sep 30 2016n/an/a

UK£482m

Jun 30 2016n/an/a

UK£547m

Mar 31 2016n/an/a

UK£615m

Dec 31 2015UK£2mUK£579k

UK£683m

Compensation vs Market: David John's total compensation ($USD5.75M) is above average for companies of similar size in the UK market ($USD3.26M).

Compensation vs Earnings: David John's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SGRO's management team is seasoned and experienced (10.8 years average tenure).


Board Members

Experienced Board: SGRO's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SGRO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

LSE:SGRO Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
14 Sep 22BuyUK£198,702Andrew HarrisonIndividual22,271UK£8.92
17 Jun 22BuyUK£397,017Andrew HarrisonIndividual40,199UK£9.88
11 May 22BuyUK£29,990Mary BarnardIndividual2,745UK£10.93

Ownership Breakdown

What is the ownership structure of SGRO?
Owner TypeNumber of SharesOwnership Percentage
Employee Share Scheme436,6410.04%
Public Companies441,6060.04%
Private Companies1,715,6250.1%
Individual Insiders2,418,8760.2%
State or Government3,156,1320.3%
General Public138,921,59211.5%
Institutions1,061,808,45787.8%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 57.75% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.77%
BlackRock, Inc.
106,074,666£760.6m-18.73%0.02%
5.66%
Stichting Pensioenfonds ABP
68,466,273£490.9m0.77%0.73%
5.47%
Norges Bank Investment Management
66,094,564£473.9m4.67%0.07%
4.59%
The Vanguard Group, Inc.
55,445,300£397.5m2.3%0.01%
3.99%
State Street Global Advisors, Inc.
48,289,774£346.2m-1.16%0.02%
3.01%
Legal & General Investment Management Limited
36,342,665£260.6m0.25%0.08%
2.66%
Royal London Asset Management Limited
32,121,814£230.3m8.33%0.47%
2.26%
Amundi Asset Management
27,307,937£195.8m-3.68%0.06%
2.2%
Alecta Pensionsförsäkring, ömsesidigt
26,624,982£190.9m0%0.59%
2.14%
Principal Global Investors, LLC
25,819,004£185.1m17.35%0.14%
1.99%
UBS Asset Management
24,029,438£172.3m20.43%0.04%
1.88%
HSBC Global Asset Management (UK) Limited
22,744,084£163.1m108.52%0.14%
1.73%
PGGM
20,891,823£149.8m-9.11%0.94%
1.43%
Dimensional Fund Advisors LP
17,297,804£124.0m8.64%0.03%
1.41%
BNP Paribas, Private & Investment Banking Investments
17,075,653£122.4m499.1%0.88%
1.17%
abrdn plc
14,137,971£101.4m-24.6%0.11%
1.07%
Northern Trust Global Investments
12,988,151£93.1m-5.37%0.02%
0.94%
Artemis Investment Management LLP
11,417,294£81.9m-0.85%0.4%
0.91%
AXA Investment Managers S.A.
11,036,123£79.1m-2.51%0.18%
0.86%
Janus Henderson Group plc
10,423,304£74.7m2.07%0.04%
0.8%
Pictet Asset Management Limited
9,681,138£69.4m-5.93%0.07%
0.75%
William Blair Investment Management, LLC
9,111,845£65.3m-13.43%0.13%
0.73%
Ignis Investment Services Limited
8,869,843£63.6m-4.62%0.26%
0.66%
Deutsche Asset & Wealth Management
7,943,697£57.0m-18.97%0.03%
0.65%
Cohen & Steers Capital Management, Inc.
7,844,918£56.2m-25.07%0.12%

Company Information

SEGRO Plc's employee growth, exchange listings and data sources


Key Information

  • Name: SEGRO Plc
  • Ticker: SGRO
  • Exchange: LSE
  • Founded: 1920
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Implied Market Cap: UK£8.668b
  • Shares outstanding: 1.21b
  • Website: https://www.segro.com

Number of Employees


Location

  • SEGRO Plc
  • Cunard House
  • 15 Regent Street
  • London
  • East Lothian
  • SW1Y 4LR
  • United Kingdom


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGROENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
SEGX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SGROLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
S4VCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SGROLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
SGRO NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.