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SGRO

SEGROLSE:SGRO Stock Report

Market Cap

UK£14.7b

7D

-2.4%

1Y

27.9%

Updated

27 Sep, 2021

Data

Company Financials +
SGRO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends5/6

SGRO 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£12.21
52 Week HighUK£8.64
52 Week LowUK£13.11
Beta0.51
1 Month Change-4.80%
3 Month Change10.40%
1 Year Change27.91%
3 Year Change90.11%
5 Year Change168.12%
Change since IPO-50.59%

Recent News & Updates

Shareholder Returns

SGROGB REITsGB Market
7D-2.4%0.5%1.6%
1Y27.9%31.0%21.7%

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

Return vs Market: SGRO exceeded the UK Market which returned 24.1% over the past year.

Price Volatility

Is SGRO's price volatile compared to industry and market?
SGRO volatility
SGRO Beta0.51
Industry Beta0.84
Market Beta1

Stable Share Price: SGRO is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SGRO's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1920355David 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£14.67b
Earnings (TTM)UK£2.53b
Revenue (TTM)UK£479.70m

5.8x

P/E Ratio

30.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SGRO income statement (TTM)
RevenueUK£479.70m
Cost of RevenueUK£124.30m
Gross ProfitUK£355.40m
Expenses-UK£2.17b
EarningsUK£2.53b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 18, 2022

Earnings per share (EPS)2.10
Gross Margin74.09%
Net Profit Margin526.98%
Debt/Equity Ratio21.8%

How did SGRO perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

73%

Payout Ratio

Valuation

Is SEGRO undervalued compared to its fair value and its price relative to the market?

5.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SGRO (£12.21) is trading above our estimate of fair value (£8.63)

Significantly Below Fair Value: SGRO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SGRO is good value based on its PE Ratio (5.8x) compared to the UK REITs industry average (14.9x).

PE vs Market: SGRO is good value based on its PE Ratio (5.8x) compared to the UK market (23.4x).


Price to Earnings Growth Ratio

PEG Ratio: SGRO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SGRO is overvalued based on its PB Ratio (1.4x) compared to the GB REITs industry average (0.9x).


Future Growth

How is SEGRO forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-27.1%

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 (-27.1% per year).

Earnings vs Market: SGRO's earnings are forecast to decline over the next 3 years (-27.1% per year).

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

Revenue vs Market: SGRO's revenue (9.8% per year) is forecast to grow faster than the UK market (5.9% per year).

High Growth Revenue: SGRO's revenue (9.8% 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 (4.5%).


Past Performance

How has SEGRO performed over the past 5 years?

23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGRO has a large one-off gain of £2.0B impacting its June 30 2021 financial results.

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 23.2% per year over the past 5 years.

Accelerating Growth: SGRO's earnings growth over the past year (272.8%) exceeds its 5-year average (23.2% per year).

Earnings vs Industry: SGRO earnings growth over the past year (272.8%) exceeded the REITs industry 46.5%.


Return on Equity

High ROE: SGRO's Return on Equity (23.5%) is considered high.


Financial Health

How is SEGRO's financial position?


Financial Position Analysis

Short Term Liabilities: SGRO's short term assets (£304.0M) do not cover its short term liabilities (£524.0M).

Long Term Liabilities: SGRO's short term assets (£304.0M) do not cover its long term liabilities (£2.6B).


Debt to Equity History and Analysis

Debt Level: SGRO's debt to equity ratio (21.8%) is considered satisfactory.

Reducing Debt: SGRO's debt to equity ratio has reduced from 47.6% to 21.8% over the past 5 years.

Debt Coverage: SGRO's debt is not well covered by operating cash flow (11.1%).

Interest Coverage: SGRO's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Dividend

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

1.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGRO's dividend (1.85%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: SGRO's dividend (1.85%) is low compared to the top 25% of dividend payers in the UK market (3.93%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.8%), SGRO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SGRO's dividends in 3 years are forecast to be covered by earnings (84.4% payout ratio).


Next Steps

Management

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

9.8yrs

Average management tenure


CEO

David John Sleath (60 yo)

10.42yrs

Tenure

UK£3,752,000

Compensation

Mr. David John Rivers Sleath has been the Chief Executive Officer at SEGRO Plc since April 28, 2011. Mr. Sleath serves as Non-Executive Director of Electrocomponents plc since June 1, 2019 and serves as it...


CEO Compensation Analysis

Compensation vs Market: David John's total compensation ($USD5.14M) is above average for companies of similar size in the UK market ($USD3.77M).

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


Leadership Team

Experienced Management: SGRO's management team is seasoned and experienced (9.8 years average tenure).


Board Members

Experienced Board: SGRO'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: SGRO 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

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
  • Market Cap: UK£14.673b
  • Shares outstanding: 1.20b
  • Website: https://www.segro.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 21:16
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.