Market Cap
UK£9.9b
Last Updated
2020/06/05 22:35 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -4.3% per year for the next 3 years
+ 1 more risk
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.3%
SGRO
8.7%
GB REITs
5.5%
GB Market
1 Year Return
24.8%
SGRO
-8.0%
GB REITs
-9.2%
GB Market
Return vs Industry: SGRO exceeded the UK REITs industry which returned -9% over the past year.
Return vs Market: SGRO exceeded the UK Market which returned -10% over the past year.
Shareholder returns
| SGRO | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.3% | 8.7% | 5.5% |
| 30 Day | 12.4% | 13.0% | 10.8% |
| 90 Day | 5.1% | -9.8% | -0.4% |
| 1 Year | 28.4%24.8% | -4.8%-8.0% | -4.8%-9.2% |
| 3 Year | 94.3%78.4% | -2.8%-14.6% | -0.8%-12.9% |
| 5 Year | 158.1%110.6% | -2.6%-20.3% | 18.1%-8.2% |
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
1 month ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In SEGRO Plc (LON:SGRO)1 month ago | Simply Wall St
Should You Be Worried About Insider Transactions At SEGRO Plc (LON:SGRO)?6 months ago | Simply Wall St
Need To Know: SEGRO Plc (LON:SGRO) Insiders Have Been Selling SharesValuation
Is SEGRO undervalued compared to its fair value and its price relative to the market?
11.25x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SGRO (£8.93) is trading above our estimate of fair value (£5.92)
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 (11.3x) compared to the REITs industry average (15.2x).
PE vs Market: SGRO is good value based on its PE Ratio (11.3x) compared to the UK market (15x).
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?
-4.3%
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 (-4.3% per year).
Earnings vs Market: SGRO's earnings are forecast to decline over the next 3 years (-4.3% per year).
High Growth Earnings: SGRO's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SGRO's revenue (6.1% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: SGRO's revenue (6.1% 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 (3.9%).
Next Steps
Past Performance
How has SEGRO performed over the past 5 years?
10.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SGRO has a large one-off gain of £469.2M impacting its December 31 2019 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 10.3% 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 (-19.3%) over the past year, making it difficult to compare to the REITs industry average (-22.4%).
Return on Equity
High ROE: SGRO's Return on Equity (11.2%) is considered low.
Next Steps
Financial Health
How is SEGRO's financial position?
Financial Position Analysis
Short Term Liabilities: SGRO's short term assets (£308.0M) exceed its short term liabilities (£305.5M).
Long Term Liabilities: SGRO's short term assets (£308.0M) do not cover its long term liabilities (£2.1B).
Debt to Equity History and Analysis
Debt Level: SGRO's debt to equity ratio (25.3%) is considered satisfactory.
Reducing Debt: SGRO's debt to equity ratio has reduced from 59.8% to 25.3% over the past 5 years.
Debt Coverage: SGRO's debt is not well covered by operating cash flow (10.8%).
Interest Coverage: SGRO's interest payments on its debt are well covered by EBIT (8.9x coverage).
Balance Sheet
Next Steps
Dividend
What is SEGRO's current dividend yield, its reliability and sustainability?
2.32%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SGRO's dividend (2.32%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).
High Dividend: SGRO's dividend (2.32%) is low compared to the top 25% of dividend payers in the UK market (5.5%).
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 (67.4%), 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 (83.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.6yrs
Average management tenure
CEO
David John Sleath (58yo)
9.17yrs
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 ($USD8.43M) is above average for companies of similar size in the UK market ($USD4.22M).
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 9.17yrs | UK£6.63m | 0.063% £6.3m | |
| CFO & Executive Director | 3.42yrs | UK£5.15m | 0.027% £2.7m | |
| COO & Executive Director | 7.08yrs | UK£4.32m | 0.056% £5.6m | |
| Director of Digital & Technology | no data | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel & Group Company Secretary | no data | no data | 0.014% £1.4m | |
| External Communications Manager | no data | no data | no data | |
| Director of Marketing & Communications | 6.67yrs | no data | no data | |
| Group Human Resouse Director | no data | no data | 0.013% £1.3m | |
| Head of Construction | no data | no data | no data |
7.6yrs
Average Tenure
55yo
Average Age
Experienced Management: SGRO's management team is seasoned and experienced (7.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 9.17yrs | UK£6.63m | 0.063% £6.3m | |
| CFO & Executive Director | 3.42yrs | UK£5.15m | 0.027% £2.7m | |
| COO & Executive Director | 7.08yrs | UK£4.32m | 0.056% £5.6m | |
| Independent Chairman of the Board | 4.17yrs | UK£250.00k | 0.0058% £571.5k | |
| Independent Non Executive Director | 7.67yrs | UK£75.00k | 0.0019% £183.9k | |
| Independent Non-Executive Director | 1.25yrs | UK£50.00k | 0.00067% £66.2k | |
| Senior Independent Non-Executive Director | 2.17yrs | UK£75.00k | 0.0016% £155.2k | |
| Independent Non-Executive Director | 2yrs | UK£60.00k | 0.00063% £62.3k | |
| Independent Non Executive Director | 2.42yrs | UK£71.00k | 0.0011% £106.8k |
3.4yrs
Average Tenure
58yo
Average Age
Experienced Board: SGRO's board of directors are considered experienced (3.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SGRO insiders have sold more shares than they have bought 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 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£9.888b
- Shares outstanding: 1.11b
- Website: https://www.segro.com
Number of Employees
Location
- SEGRO Plc
- Cunard House
- 15 Regent Street
- London
- East Lothian
- SW1Y 4LR
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SEGX.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| SGRO | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| S4VC | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| SGROL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 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 million square metres of space (86 million square feet) valued at £12.2 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/05 22:35 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.