LSE:SMP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

St. Modwen Properties PLC invests in, develops, operates, and manages residential and commercial properties in the United Kingdom.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has St. Modwen Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.7%

SMP

-2.0%

GB Real Estate

-0.7%

GB Market


1 Year Return

-12.4%

SMP

-14.7%

GB Real Estate

-15.7%

GB Market

Return vs Industry: SMP matched the UK Real Estate industry which returned -12.9% over the past year.

Return vs Market: SMP exceeded the UK Market which returned -14.9% over the past year.


Shareholder returns

SMPIndustryMarket
7 Day2.7%-2.0%-0.7%
30 Day9.6%-0.6%0.6%
90 Day0.5%11.5%11.3%
1 Year-11.6%-12.4%-13.1%-14.7%-11.7%-15.7%
3 Year10.3%5.5%-12.8%-20.1%-4.3%-16.1%
5 Year-16.2%-22.6%-0.5%-14.9%13.5%-11.9%

Price Volatility Vs. Market

How volatile is St. Modwen Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is St. Modwen Properties undervalued compared to its fair value and its price relative to the market?

16.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SMP (£3.67) is trading above our estimate of fair value (£3.62)

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


Price To Earnings Ratio

PE vs Industry: SMP is poor value based on its PE Ratio (16.1x) compared to the GB Real Estate industry average (13.1x).

PE vs Market: SMP is poor value based on its PE Ratio (16.1x) compared to the UK market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: SMP is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SMP is good value based on its PB Ratio (0.8x) compared to the GB Real Estate industry average (0.9x).


Next Steps

Future Growth

How is St. Modwen Properties forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMP's forecast earnings growth (18.3% per year) is above the savings rate (1.2%).

Earnings vs Market: SMP's earnings (18.3% per year) are forecast to grow slower than the UK market (21.6% per year).

High Growth Earnings: SMP's earnings are forecast to grow, but not significantly.

Revenue vs Market: SMP's revenue is expected to decline over the next 3 years (-81.2% per year).

High Growth Revenue: SMP's revenue is forecast to decline over the next 3 years (-81.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMP's Return on Equity is forecast to be low in 3 years time (4.2%).


Next Steps

Past Performance

How has St. Modwen Properties performed over the past 5 years?

-32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMP has a large one-off gain of £42.3M impacting its November 30 2019 financial results.

Growing Profit Margin: SMP's current net profit margins (11.8%) are lower than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: SMP's earnings have declined by -32% per year over the past 5 years.

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

Earnings vs Industry: SMP had negative earnings growth (-15.8%) over the past year, making it difficult to compare to the Real Estate industry average (-5.2%).


Return on Equity

High ROE: SMP's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is St. Modwen Properties's financial position?


Financial Position Analysis

Short Term Liabilities: SMP's short term assets (£569.0M) exceed its short term liabilities (£166.3M).

Long Term Liabilities: SMP's short term assets (£569.0M) exceed its long term liabilities (£404.6M).


Debt to Equity History and Analysis

Debt Level: SMP's debt to equity ratio (32.8%) is considered satisfactory.

Reducing Debt: SMP's debt to equity ratio has reduced from 48.2% to 32.8% over the past 5 years.

Debt Coverage: SMP's debt is well covered by operating cash flow (20.9%).

Interest Coverage: SMP's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

What is St. Modwen Properties's current dividend yield, its reliability and sustainability?

2.85%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SMP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SMP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SMP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SMP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SMP is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SMP's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Rob Hudson (46yo)

0.25

Tenure

UK£1,128,000

Compensation

Mr. Robert J. Hudson, also known as Rob, has been an Interim Chief Executive Officer at St. Modwen Properties Plc since April 2020 and serves as Chief Financial Officer. He served Chief Finance and Operati ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD1.41M) is about average for companies of similar size in the UK market ($USD1.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Hudson
Interim CEO0.25yrUK£1.13m0.068% £553.5k
Andrew Eames
General Counsel & Company Secretary2.67yrsno datano data
Kathryn Edwards
Interim Head of Corporate Communicationsno datano datano data
Jane Saint
Group HR Director3.5yrsno datano data
Dave Smith
Managing Director of St. Modwen Homes4.67yrsno datano data
Rebecca Cooke
Head of Internal Audit3.58yrsno datano data
David Binks
Head of Leasing2.17yrsno datano data
Rob Flavell
Head of Major Projects of Midlands & North1.83yrsno datano data
Ian Romano
Head of Commercial of Midlands & North1.83yrsno datano data
Tom Gough
Head of External Communications & Stakeholder Relationsno datano datano data
Simon Redfern
Group Financial Controller & Treasurer4.17yrsno datano data
Sylvia Anderson
PA to the Finance Director & Company Secretaryno datano datano data

2.7yrs

Average Tenure

Experienced Management: SMP's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Hudson
Interim CEO0.25yrUK£1.13m0.068% £553.5k
Danuta Gray
Independent Non-Executive Chairman1.33yrsUK£170.00k0.0047% £38.5k
Sarah Whitney
Independent Non-Executive Director0.83yrUK£10.00k0.0040% £33.0k
Simon Clarke
Non-Independent Non-Executive Director15.75yrsUK£47.00k1.22% £9.9m
Jenefer Greenwood
Independent Non-Executive Director3.08yrsUK£56.00k0.0047% £37.9k
Ian Bull
Senior Independent Director2.33yrsUK£65.00k0.016% £128.2k
Jameson Hopkins
Independent Non-Executive Director2.33yrsUK£47.00k0.0057% £46.1k

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: SMP's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

St. Modwen Properties PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: St. Modwen Properties PLC
  • Ticker: SMP
  • Exchange: LSE
  • Founded: 1986
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: UK£814.240m
  • Shares outstanding: 222.17m
  • Website: https://www.stmodwen.co.uk

Number of Employees


Location

  • St. Modwen Properties PLC
  • Park Point
  • 17 High Street
  • Birmingham
  • West Midlands
  • B31 2UQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMPLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
SMPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
STMW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

St. Modwen Properties PLC invests in, develops, operates, and manages residential and commercial properties in the United Kingdom. It operates through Industrial & Logistics; St. Modwen Homes; and Strategic Land & Regeneration segments. The company is also involved in industrial and logistics; housebuilding; and strategic land and regeneration project activities. St. Modwen Properties PLC was founded in 1986 and is headquartered in Birmingham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 20:58
End of Day Share Price2020/07/14 00:00
Earnings2019/11/30
Annual Earnings2019/11/30


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.