LSE:SGRO

Stock Analysis Report

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.

Snowflake

Fundamentals

Mediocre balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

0.1%

LSE:SGRO

0.7%

GB REITs

-1.1%

GB Market


1 Year Return

14.6%

LSE:SGRO

-10.5%

GB REITs

-5.7%

GB Market

SGRO outperformed the REITs industry which returned -10.3% over the past year.

SGRO outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.3% over the past year.


Share holder returns

SGROIndustryMarket
7 Day0.1%0.7%-1.1%
30 Day0.08%-5.6%-4.4%
90 Day5.5%-5.9%-2.7%
1 Year17.9%14.6%-6.5%-10.5%-1.3%-5.7%
3 Year91.4%67.3%4.8%-9.8%17.6%3.9%
5 Year149.3%100.2%18.8%-4.4%26.8%0.1%

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

8.68x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

SEGRO's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

SEGRO's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

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

SEGRO is overvalued based on assets compared to the GB REITs industry average.


Next Steps

Future Growth

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

-12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SEGRO's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).

SEGRO's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

SEGRO's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

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 earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

SEGRO is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has SEGRO performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SEGRO's year on year earnings growth rate has been positive over the past 5 years.

SEGRO's 1-year earnings growth is negative, it can't be compared to the 5-year average.

SEGRO's 1-year earnings growth is negative, it can't be compared to the GB REITs industry average.


Return on Equity

SEGRO has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

SEGRO used its assets more efficiently than the GB REITs industry average last year based on Return on Assets.


Return on Capital Employed

SEGRO's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SEGRO's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

SEGRO's level of debt (27.2%) 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 (68.2% vs 27.2% today).

Debt is not well covered by operating cash flow (11.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 52.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

2.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

SEGRO's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

SEGRO's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.7%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

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).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

David John Sleath (58yo)

8.3yrs

Tenure

UK£3,596,000

Compensation

Mr. David J. R. 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. Mr. Sleath served as  ...


CEO Compensation Analysis

David John's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

David John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.8yrs

Average Tenure

53.5yo

Average Age

The average tenure for the SEGRO management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.8yrs

Average Tenure

58yo

Average Age

The tenure for the SEGRO board of directors is about average.


Insider Trading

SEGRO individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£799,74417 Jun 19
Soumen Das
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares110,000
Max PriceUK£7.27

Ownership Breakdown


Management Team

  • Elizabeth Blease (52yo)

    General Counsel & Group Company Secretary

    • Tenure: 0.0yrs
  • David John Sleath (58yo)

    CEO & Executive Director

    • Tenure: 8.3yrs
    • Compensation: UK£3.60m
  • Phil Redding (50yo)

    Chief Investment Officer & Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£2.32m
  • Andy Gulliford (56yo)

    COO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£2.32m
  • Soumen Das (42yo)

    CFO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£1.78m
  • Harry Stokes

    Commercial Finance Director and Head of Investor Relations & Research

    • Tenure: 0.0yrs
  • Liz Reilly (55yo)

    Group Human Resouse Director

    • Tenure: 0.0yrs
  • Nick Hughes

    Director of Marketing & Communications

    • Tenure: 5.8yrs
  • James Power

    Director of Digital & Technology

    • Tenure: 0.0yrs
  • Lizzie Humphreys

    External Communications Manager

    • Tenure: 0.0yrs

Board Members

  • Gerald Michael Corbett (68yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: UK£250.00k
  • Christopher Fisher (65yo)

    Independent Non Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£75.00k
  • David John Sleath (58yo)

    CEO & Executive Director

    • Tenure: 8.3yrs
    • Compensation: UK£3.60m
  • Doug Webb (58yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: UK£75.00k
  • Phil Redding (50yo)

    Chief Investment Officer & Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£2.32m
  • Andy Gulliford (56yo)

    COO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£2.32m
  • Martin Moore (62yo)

    Senior Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£70.00k
  • Sue Clayton (61yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: UK£35.00k
  • Soumen Das (42yo)

    CFO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£1.78m
  • Carol Fairweather (58yo)

    Independent Non Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£60.00k

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£8.330b
  • Shares outstanding: 1.09b
  • 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 7.8 million square metres of space (84 m ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 21:22
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.