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SEGRO

LSE:SGRO
Snowflake Description

Acceptable track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SGRO
LSE
£8B
Market Cap
  1. Home
  2. GB
  3. Real Estate
Company description

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. The last earnings update was 75 days ago. More info.


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SGRO Share Price and Events
7 Day Returns
3.9%
LSE:SGRO
0%
GB REITs
1.3%
GB Market
1 Year Returns
10.7%
LSE:SGRO
-6.7%
GB REITs
-5%
GB Market
SGRO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SEGRO (SGRO) 3.9% 6.4% 11.3% 10.7% 67% 98.8%
GB REITs 0% 0.2% 1.9% -6.7% -5.9% 5.9%
GB Market 1.3% -1.6% 1.9% -5% 15.8% 2.5%
1 Year Return vs Industry and Market
  • SGRO outperformed the REITs industry which returned -6.7% over the past year.
  • SGRO outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5% over the past year.
Price Volatility
SGRO
Industry
5yr Volatility vs Market

Value

 Is SEGRO undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SEGRO to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SEGRO.

LSE:SGRO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SGRO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.52
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.523 (1 + (1- 19%) (29.05%))
0.763
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for LSE:SGRO using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for SEGRO is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEGRO is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

LSE:SGRO DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (GBP, Millions) Source Present Value
Discounted (@ 6.55%)
2019 237.40 Analyst x1 222.81
2020 259.70 Analyst x1 228.76
2021 282.40 Analyst x1 233.48
2022 300.55 Est @ 6.43% 233.21
2023 315.17 Est @ 4.87% 229.53
2024 327.06 Est @ 3.77% 223.56
2025 336.91 Est @ 3.01% 216.13
2026 345.25 Est @ 2.48% 207.87
2027 352.50 Est @ 2.1% 199.20
2028 358.98 Est @ 1.84% 190.40
Present value of next 10 years cash flows £2,184.95
LSE:SGRO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £358.98 × (1 + 1.23%) ÷ (6.55% – 1.23%)
£6,830.57
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £6,830.57 ÷ (1 + 6.55%)10
£3,622.81
LSE:SGRO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £2,184.95 + £3,622.81
£5,807.76
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £5,807.76 / 1,083.83
£5.36
LSE:SGRO Discount to Share Price
Calculation Result
Value per share (GBP) From above. £5.36
Current discount Discount to share price of £7.13
= -1 x (£7.13 - £5.36) / £5.36
-33%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of SEGRO is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SEGRO's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SEGRO's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SGRO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £1.05
LSE:SGRO Share Price ** LSE (2019-05-17) in GBP £7.13
United Kingdom of Great Britain and Northern Ireland REITs Industry PE Ratio Median Figure of 44 Publicly-Listed REITs Companies 12.21x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 790 Publicly-Listed Companies 16.24x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SEGRO.

LSE:SGRO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SGRO Share Price ÷ EPS (both in GBP)

= 7.13 ÷ 1.05

6.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SEGRO is good value based on earnings compared to the GB REITs industry average.
  • SEGRO is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does SEGRO's expected growth come at a high price?
Raw Data
LSE:SGRO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
-24.3%per year
United Kingdom of Great Britain and Northern Ireland REITs Industry PEG Ratio Median Figure of 25 Publicly-Listed REITs Companies -0.28x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

LSE:SGRO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.76x ÷ -24.3%

-0.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SEGRO earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on SEGRO's assets?
Raw Data
LSE:SGRO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £6.48
LSE:SGRO Share Price * LSE (2019-05-17) in GBP £7.13
United Kingdom of Great Britain and Northern Ireland REITs Industry PB Ratio Median Figure of 54 Publicly-Listed REITs Companies 0.93x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.51x
LSE:SGRO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SGRO Share Price ÷ Book Value per Share (both in GBP)

= 7.13 ÷ 6.48

1.1x

* Primary Listing of SEGRO.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SEGRO is overvalued based on assets compared to the GB REITs industry average.
X
Value checks
We assess SEGRO's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. SEGRO has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is SEGRO expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-24.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SEGRO expected to grow at an attractive rate?
  • SEGRO's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
Growth vs Market Checks
  • SEGRO's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • SEGRO's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SGRO Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SGRO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts -24.3%
LSE:SGRO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 9.4%
United Kingdom of Great Britain and Northern Ireland REITs Industry Earnings Growth Rate Market Cap Weighted Average 18%
United Kingdom of Great Britain and Northern Ireland REITs Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SGRO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SGRO Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 589 70 1
2022-12-31 545 482 1
2021-12-31 457 327 640 5
2020-12-31 430 297 731 6
2019-12-31 402 262 861 5
LSE:SGRO Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 343 200 1,063
2018-09-30 325 90 1,093
2018-06-30 307 -20 1,124
2018-03-31 302 -22 1,038
2017-12-31 297 -24 953
2017-09-30 283 49 781
2017-06-30 268 122 609
2017-03-31 256 112 514
2016-12-31 244 101 418
2016-09-30 242 94 482
2016-06-30 240 86 547
2016-03-31 234 87 615

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SEGRO's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • SEGRO's revenue is expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SGRO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from SEGRO Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SGRO Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.07 0.07 0.07 1.00
2022-12-31 0.17 0.17 0.17 1.00
2021-12-31 0.59 0.71 0.50 5.00
2020-12-31 0.75 1.04 0.59 6.00
2019-12-31 0.87 1.02 0.65 6.00
LSE:SGRO Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 1.05
2018-09-30 1.09
2018-06-30 1.12
2018-03-31 1.05
2017-12-31 0.98
2017-09-30 0.86
2017-06-30 0.72
2017-03-31 0.63
2016-12-31 0.54
2016-09-30 0.63
2016-06-30 0.72
2016-03-31 0.81

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SEGRO is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SEGRO's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SEGRO has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has SEGRO performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SEGRO's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SEGRO's year on year earnings growth rate has been positive over the past 5 years.
  • SEGRO's 1-year earnings growth is less than its 5-year average (11.5% vs 18.6%)
  • SEGRO's earnings growth has exceeded the GB REITs industry average in the past year (11.5% vs 9.5%).
Earnings and Revenue History
SEGRO's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SEGRO Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SGRO Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 342.60 1,062.60 43.20
2018-09-30 324.90 1,093.40 42.45
2018-06-30 307.20 1,124.20 41.70
2018-03-31 302.20 1,038.45 40.05
2017-12-31 297.20 952.70 38.40
2017-09-30 282.65 781.00 35.40
2017-06-30 268.10 609.30 32.40
2017-03-31 256.10 513.50 31.45
2016-12-31 244.10 417.70 30.50
2016-09-30 241.85 482.10 30.55
2016-06-30 239.60 546.50 30.60
2016-03-31 233.65 614.50 29.65
2015-12-31 227.70 682.50 28.70
2015-09-30 224.80 738.15 28.15
2015-06-30 221.90 793.80 27.60
2015-03-31 224.40 737.90 26.90
2014-12-31 226.90 682.00 26.20
2014-09-30 237.05 547.20 26.00
2014-06-30 247.20 412.40 25.80
2014-03-31 264.05 311.50 26.10
2013-12-31 280.90 210.60 26.40
2013-09-30 290.25 55.00 26.60
2013-06-30 299.60 -100.60 26.80
2013-03-31 306.20 -148.95 27.20
2012-12-31 312.80 -197.30 27.60
2012-09-30 320.65 -185.85 28.20
2012-06-30 328.50 -174.40 28.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SEGRO has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SEGRO used its assets more efficiently than the GB REITs industry average last year based on Return on Assets.
  • SEGRO's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SEGRO's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SEGRO has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is SEGRO's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SEGRO's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SEGRO's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • SEGRO's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of SEGRO's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SEGRO Company Filings, last reported 4 months ago.

LSE:SGRO Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 6,564.00 2,243.50 75.80
2018-09-30 6,564.00 2,243.50 75.80
2018-06-30 6,077.40 2,155.50 40.60
2018-03-31 6,077.40 2,155.50 40.60
2017-12-31 5,584.20 2,063.50 109.30
2017-09-30 5,584.20 2,063.50 109.30
2017-06-30 5,052.10 1,813.70 62.80
2017-03-31 5,052.10 1,813.70 62.80
2016-12-31 4,180.90 1,645.10 43.10
2016-09-30 4,180.90 1,645.10 43.10
2016-06-30 3,647.50 1,739.50 10.90
2016-03-31 3,647.50 1,739.50 10.90
2015-12-31 3,488.10 1,824.00 16.40
2015-09-30 3,488.10 1,824.00 16.40
2015-06-30 3,160.10 1,802.10 24.90
2015-03-31 3,160.10 1,802.10 24.90
2014-12-31 2,888.80 1,727.90 75.20
2014-09-30 2,888.80 1,727.90 75.20
2014-06-30 2,480.70 1,693.60 23.70
2014-03-31 2,480.70 1,693.60 23.70
2013-12-31 2,344.90 1,704.00 247.60
2013-09-30 2,344.90 1,704.00 247.60
2013-06-30 2,198.70 2,144.60 12.30
2013-03-31 2,198.70 2,144.60 12.30
2012-12-31 2,236.60 2,149.50 16.60
2012-09-30 2,236.60 2,149.50 16.60
2012-06-30 2,386.60 2,081.60 13.10
  • SEGRO's level of debt (34.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (72.6% vs 34.2% today).
  • Debt is not well covered by operating cash flow (8.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
X
Financial health checks
We assess SEGRO's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SEGRO has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.64%
Current annual income from SEGRO dividends. Estimated to be 3.05% next year.
If you bought £2,000 of SEGRO shares you are expected to receive £53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SEGRO's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
  • SEGRO's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.21%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SGRO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland REITs Industry Average Dividend Yield Market Cap Weighted Average of 49 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SGRO Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.28 2.00
2022-12-31 0.26 3.00
2021-12-31 0.23 15.00
2020-12-31 0.21 18.00
2019-12-31 0.20 18.00
LSE:SGRO Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-28 0.188 2.757
2018-08-23 0.169 2.675
2018-02-23 0.166 2.592
2018-02-16 0.166 2.841
2017-07-27 0.165 2.990
2017-03-30 0.164 3.344
2016-04-04 0.156 3.548
2015-04-29 0.151 3.547
2014-03-18 0.148 3.937
2014-02-26 0.148 4.230
2013-03-01 0.148 4.919
2012-02-21 0.148 6.317
2011-08-23 0.145 6.481
2011-03-21 0.143 4.697
2011-02-24 0.143 4.510
2010-03-01 0.140 4.814
2010-02-25 0.140 4.362

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, SEGRO has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but SEGRO only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of SEGRO's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess SEGRO's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SEGRO afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SEGRO has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of SEGRO's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David John Sleath
COMPENSATION £3,596,000
AGE 57
TENURE AS CEO 8.1 years
CEO Bio

Mr. David J. R. Sleath has been the Chief Executive Officer at SEGRO Plc since April 28, 2011. Mr. Sleath served as Finance Director of SEGRO Plc (Slough Estates Plc) since January 1, 2006. He has extensive experience of financial reporting, corporate finance and risk management. He served as Deputy Finance Director of SEGRO Plc from April 2005 to January 1, 2006. He served as the Group Finance Director of Wagon Plc until March 2005 and its Executive Director from May 1999 to March 2005. Prior to joining Wagon in 1999, Mr. Sleath spent 17 years with Arthur Andersen, where he served as its partner in the corporate Finance Department from 1992 to 1995 and Head of the Assurance Practice for the Midlands Region since 1995. He served with Arthur Andersen from 1982 to 1999. Mr. Sleath serves as the Chairman of the Board at Guildhall Property Co. PLC. He has been an Executive Director of SEGRO Plc since January 1, 2006. He served as a Non Executive Director of Bunzl PLC since September 1, 2007 until April 19, 2017 and served as its Senior Independent Director since April 16, 2015 until April 19, 2017. He was a Board member of the European Public Real Estate Association from 2011 until 2017, and President of the British Property Federation 2016-17. He is a Fellow of the Institute of Chartered Accountants in England and Wales and Member of the Securities Institute. He is a graduate of Warwick Business School.

CEO Compensation
  • David John's compensation has been consistent with company performance over the past year.
  • David John's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the SEGRO management team in years:

7.5
Average Tenure
52.5
Average Age
  • The average tenure for the SEGRO management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David John Sleath

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
57
TENURE
8.1 yrs

Soumen Das

TITLE
CFO & Executive Director
COMPENSATION
£2M
AGE
41
TENURE
2.3 yrs

Andy Gulliford

TITLE
COO & Executive Director
COMPENSATION
£2M
AGE
55
TENURE
7.5 yrs

Phil Redding

TITLE
Chief Investment Officer & Executive Director
COMPENSATION
£2M
AGE
49
TENURE
7.5 yrs

James Power

TITLE
Director of Digital & Technology

Harry Stokes

TITLE
Commercial Finance Director and Head of Investor Relations & Research

Elizabeth Blease

TITLE
General Counsel & Group Company Secretary
AGE
51

Lizzie Humphreys

TITLE
External Communications Manager

Nick Hughes

TITLE
Director of Marketing & Communications
TENURE
5.6 yrs

Liz Reilly

TITLE
Group Human Resouse Director
AGE
54
Board of Directors Tenure

Average tenure and age of the SEGRO board of directors in years:

4.5
Average Tenure
57
Average Age
  • The tenure for the SEGRO board of directors is about average.
Board of Directors

Gerald Michael Corbett

TITLE
Chairman of the Board
COMPENSATION
£250K
AGE
67
TENURE
3.1 yrs

David John Sleath

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
57
TENURE
13.3 yrs

Soumen Das

TITLE
CFO & Executive Director
COMPENSATION
£2M
AGE
41
TENURE
2.3 yrs

Andy Gulliford

TITLE
COO & Executive Director
COMPENSATION
£2M
AGE
55
TENURE
6 yrs

Phil Redding

TITLE
Chief Investment Officer & Executive Director
COMPENSATION
£2M
AGE
49
TENURE
6 yrs

Christopher Fisher

TITLE
Independent Non Executive Director
COMPENSATION
£75K
AGE
64
TENURE
6.6 yrs

Carol Fairweather

TITLE
Independent Non Executive Director
COMPENSATION
£60K
AGE
57
TENURE
1.3 yrs

Martin Moore

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£70K
AGE
61
TENURE
1.1 yrs

Doug Webb

TITLE
Independent Non-Executive Director
COMPENSATION
£75K
AGE
57
TENURE
9 yrs

Sue Clayton

TITLE
Independent Non-Executive Director
COMPENSATION
£35K
AGE
60
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess SEGRO's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SEGRO has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

I Built A List Of Growing Companies And SEGRO (LON:SGRO) Made The Cut

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like SEGRO (LON:SGRO). … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … SEGRO shareholders can take confidence from the fact that EBIT margins are up from 69% to 73%, and revenue is growing.

Simply Wall St -

Can SEGRO Plc (LON:SGRO) Maintain Its Strong Returns?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.16. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's What We Think About SEGRO Plc's (LON:SGRO) CEO Pay

This analysis aims first to contrast CEO compensation with other large companies. … At the time of writing our data says that SEGRO Plc has a market cap of UK£7.4b, and is paying total annual CEO compensation of UK£3.6m. … We looked at a group of companies with market capitalizations over UK£6.1b and the median CEO total compensation was UK£3.7m

Simply Wall St -

If You Had Bought SEGRO Shares Five Years Ago You'd Have Made 86%

To wit, the SEGRO share price has climbed 86% in five years, easily topping the market return of -0.8% (ignoring dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over half a decade, SEGRO managed to grow its earnings per share at 30% a year.

Simply Wall St -

SEGRO Plc (LON:SGRO): The Yield That Matters The Most

I will take you through SEGRO’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … SEGRO generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating … What remains after this expenditure, is known as its free cash flow, or FCF, for short.

Simply Wall St -

Read This Before Selling SEGRO Plc (LON:SGRO) Shares

So before you buy or sell SEGRO Plc (LON:SGRO), you may well want to know whether insiders have been buying or selling. … SEGRO Insider Transactions Over The Last Year. … That means that an insider was happy to buy shares at around the current price.

Simply Wall St -

Is SEGRO Plc's (LON:SGRO) 19% Better Than Average?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.19 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Worry About SEGRO Plc's (LON:SGRO) CEO Salary Level?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does David John Sleath's Compensation Compare With Similar Sized Companies. … Thus we can conclude that David John Sleath receives more in total compensation than the median of a group of companies in the same market, and of similar size to SEGRO Plc

Simply Wall St -

SEGRO Plc (LON:SGRO): Set To Experience A Decrease In Earnings?

In December 2017, SEGRO Plc (LON:SGRO) announced its most recent earnings update, whicha … suggested … company

Simply Wall St -

Should You Expect SEGRO Plc (LON:SGRO) To Continue Delivering An ROE Of 17.13%?

and want to better understand how you can grow your money by investing in SEGRO Plc (LON:SGRO). … With an ROE of 17.13%, SEGRO Plc (LON:SGRO) outpaced its own industry which delivered a less exciting 9.14% over the past year. … With more debt, SGRO can invest even more and earn more money, thus pushing up its returns.

Simply Wall St -

Company Info

Description

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 7 million square metres of space (75 million square feet) valued at £11 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 eight other European countries.

Details
Name: SEGRO Plc
SGRO
Exchange: LSE
Founded: 1920
£7,723,401,098
1,083,834,002
Website: http://www.segro.com
Address: SEGRO Plc
Cunard House,
15 Regent Street,
London,
East Lothian, SW1Y 4LR,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SGRO Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK SEGX.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB S4VC Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE SGROL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
Number of employees
Current staff
Staff numbers
304
SEGRO employees.
Industry
Industrial REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/18 21:37
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/13
Last earnings filing: 2019/03/04
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.