LSE:SGRO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has SEGRO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SGRO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

SGRO

-3.4%

GB REITs

-1.9%

GB Market


1 Year Return

10.4%

SGRO

-22.5%

GB REITs

-14.5%

GB Market

Return vs Industry: SGRO exceeded the UK REITs industry which returned -22.7% over the past year.

Return vs Market: SGRO exceeded the UK Market which returned -14.2% over the past year.


Shareholder returns

SGROIndustryMarket
7 Day-3.6%-3.4%-1.9%
30 Day-5.3%-2.7%-1.7%
90 Day-2.0%-22.7%-4.4%
1 Year13.4%10.4%-25.5%-22.5%-11.3%-14.5%
3 Year82.1%67.6%-12.4%-11.4%-9.0%-20.3%
5 Year148.7%103.7%-17.9%-21.7%15.3%-10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SGRO (£9.14) is trading above our estimate of fair value (£5.66)

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 (14.9x) compared to the GB REITs industry average (16.6x).

PE vs Market: SGRO is good value based on its PE Ratio (14.9x) compared to the UK market (18.1x).


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 (1.3x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

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

-0.06%

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 (-0.06% per year).

Earnings vs Market: SGRO's earnings are forecast to decline over the next 3 years (-0.06% per year).

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

Revenue vs Market: SGRO's revenue (10.1% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: SGRO's revenue (10.1% 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 (6.1%).


Next Steps

Past Performance

How has SEGRO performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGRO has a large one-off gain of £304.7M impacting its June 30 2020 financial results.

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


Past Earnings Growth Analysis

Earnings Trend: SGRO's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: SGRO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SGRO had negative earnings growth (-24.7%) over the past year, making it difficult to compare to the REITs industry average (-24.7%).


Return on Equity

High ROE: SGRO's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is SEGRO's financial position?


Financial Position Analysis

Short Term Liabilities: SGRO's short term assets (£432.4M) exceed its short term liabilities (£405.4M).

Long Term Liabilities: SGRO's short term assets (£432.4M) do not cover its long term liabilities (£2.2B).


Debt to Equity History and Analysis

Debt Level: SGRO's debt to equity ratio (23.4%) is considered satisfactory.

Reducing Debt: SGRO's debt to equity ratio has reduced from 56.9% to 23.4% over the past 5 years.

Debt Coverage: SGRO's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: SGRO's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGRO's dividend (2.26%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: SGRO's dividend (2.26%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


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: At its current payout ratio (79%), SGRO's 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 (94.7% payout ratio).


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

David John Sleath (59 yo)

9.5yrs

Tenure

UK£6,627,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: David John's total compensation ($USD8.61M) is above average for companies of similar size in the UK market ($USD4.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David John Sleath
CEO & Executive Director9.5yrsUK£6.63m0.059%
£ 6.4m
Soumen Das
CFO & Executive Director3.75yrsUK£5.15m0.025%
£ 2.7m
Andrew Gulliford
COO & Executive Director7.42yrsUK£4.32m0.052%
£ 5.7m
James Power
Director of Digital & Technologyno datano datano data
Claire Mogford
Head of Investor Relationsno datano datano data
Elizabeth Blease
General Counsel & Group Company Secretaryno datano data0.013%
£ 1.4m
Lizzie Humphreys
External Communications Managerno datano datano data
Nick Hughes
Director of Marketing & Communications7yrsno datano data
Elizabeth Reilly
Group Human Resouse Directorno datano data0.012%
£ 1.3m
H. Rogers
Head of Constructionno datano datano data
J. Pebworth
Managing Director of Slough Heat and Powerno datano datano data
Simon Hollings
Head of European Developmentno datano datano data

8.0yrs

Average Tenure

56yo

Average Age

Experienced Management: SGRO's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David John Sleath
CEO & Executive Director9.5yrsUK£6.63m0.059%
£ 6.4m
Soumen Das
CFO & Executive Director3.75yrsUK£5.15m0.025%
£ 2.7m
Andrew Gulliford
COO & Executive Director7.42yrsUK£4.32m0.052%
£ 5.7m
Gerald Michael Corbett
Independent Chairman of the Board4.5yrsUK£250.00k0.0054%
£ 584.8k
Christopher Fisher
Independent Non Executive Director8yrsUK£75.00k0.0017%
£ 188.4k
Mary Barnard
Independent Non-Executive Director1.58yrsUK£50.00k0.00062%
£ 67.5k
Martin Moore
Senior Independent Non-Executive Director2.5yrsUK£75.00k0.0015%
£ 159.0k
Susan Clayton
Independent Non-Executive Director2.33yrsUK£60.00k0.00059%
£ 64.3k
Carol Fairweather
Independent Non Executive Director2.75yrsUK£71.00k0.0010%
£ 110.0k

3.8yrs

Average Tenure

59yo

Average Age

Experienced Board: SGRO's board of directors are considered experienced (3.8 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 8.7%.


Top Shareholders

Company Information

SEGRO Plc's company bio, 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£10.891b
  • Shares outstanding: 1.19b
  • 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
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

Biography

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 m ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 21:52
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.