LSE:SMP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and fair value.


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


Market Performance


7 Day Return

12.5%

SMP

4.8%

GB Real Estate

1.7%

GB Market


1 Year Return

28.7%

SMP

2.0%

GB Real Estate

2.9%

GB Market

Return vs Industry: SMP exceeded the UK Real Estate industry which returned 2% over the past year.

Return vs Market: SMP exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

SMPIndustryMarket
7 Day12.5%4.8%1.7%
30 Day10.8%3.5%-0.7%
90 Day13.9%5.0%-1.8%
1 Year31.2%28.7%6.1%2.0%8.0%2.9%
3 Year84.3%74.2%-5.7%-12.2%18.2%3.8%
5 Year42.1%30.4%20.0%5.4%35.6%6.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SMP (£4.72) is trading below our estimate of fair value (£14.57)

Significantly Undervalued: SMP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SMP is poor value based on its PE Ratio (16.7x) compared to the Real Estate industry average (11.2x).

PE vs Market: SMP is poor value based on its PE Ratio (16.7x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SMP is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SMP is good value based on its PB Ratio (1x) compared to the GB Real Estate industry average (1.1x).


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?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMP's forecast earnings growth (16% per year) is above the savings rate (1.2%).

Earnings vs Market: SMP's earnings (16% per year) are forecast to grow faster than the UK market (12.9% 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 (-26.4% per year).

High Growth Revenue: SMP's revenue is forecast to decline over the next 3 years (-26.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-25.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SMP's earnings have declined by -25.3% per year over the past 5 years.

Accelerating Growth: SMP's earnings growth over the past year (17%) exceeds its 5-year average (-25.3% per year).

Earnings vs Industry: SMP earnings growth over the past year (17%) exceeded the Real Estate industry 8%.


Return on Equity

High ROE: SMP's Return on Equity (5.9%) is considered low.


Return on Assets

ROA vs Industry: SMP's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: SMP has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is St. Modwen Properties's financial position?


Financial Position Analysis

Short Term Liabilities: SMP's short term assets (£483.9M) exceeds its short term liabilities (£142.9M)

Long Term Liabilities: SMP's short term assets (483.9M) exceeds its long term liabilities (403.1M)


Debt to Equity History and Analysis

Debt Level: SMP's debt to equity ratio (33.2%) is considered satisfactory

Reducing Debt: SMP's debt to equity ratio has reduced from 55.8% to 33.2% over the past 5 years.

Debt Coverage: SMP's debt is not well covered by operating cash flow (4.1%).

Interest Coverage: SMP's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: SMP has a high level of physical assets or inventory.

Debt Coverage by Assets: SMP's debt is covered by short term assets (assets are 1.370430x debt).


Next Steps

Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%2.0%markettop25%5.4%industryaverage3.1%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SMP's dividend (1.5%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: SMP's dividend (1.5%) is low compared to the top 25% of dividend payers in the UK market (5.41%).

Stable Dividend: SMP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SMP's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.9%), SMP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SMP's dividends in 3 years are forecast to be covered by earnings (50% payout ratio).


Next Steps

Management

What is the CEO of St. Modwen Properties's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Mark Allan (47yo)

2.8yrs

Tenure

UK£2,434,000

Compensation

Mr. Mark Christopher Allan has been Chief Executive Officer and Director at St Modwen Properties since December 1, 2016. Mr. Allan served as Chief Executive at The Unite Group plc since 2006. He moved to U ...


CEO Compensation Analysis

Compensation vs. Market: Mark's total compensation ($USD3.13M) is about average for companies of similar size in the UK market ($USD1.81M).

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


Management Age and Tenure

2.8yrs

Average Tenure

Experienced Management: SMP's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

53yo

Average Age

Experienced Board: SMP's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£149,23415 May 19
Mark Allan
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares36,178
Max PriceUK£4.13
BuyUK£89,99611 Apr 19
Robert Hudson
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares22,270
Max PriceUK£4.04

Ownership Breakdown


Management Team

  • Mark Allan (47yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: UK£2.43m
  • Jane Saint

    Group HR Director

    • Tenure: 2.8yrs
  • Dave Smith

    Managing Director of St. Modwen Homes

    • Tenure: 3.9yrs
  • Andrew Eames

    General Counsel & Company Secretary

    • Tenure: 1.9yrs
  • Rob Hudson (45yo)

    CFO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£961.00k
  • Rebecca Cooke

    Head of Internal Audit

    • Tenure: 2.8yrs
  • Kathryn Edwards

    Interim Head of Corporate Communications

    • Tenure: 0yrs
  • David Binks

    Head of Leasing

    • Tenure: 1.4yrs
  • Rob Flavell

    Head of Major Projects of Midlands & North

    • Tenure: 1.1yrs
  • Ian Romano

    Head of Commercial of Midlands & North

    • Tenure: 1.1yrs

Board Members

  • Danuta Gray (61yo)

    Non-executive Chairman

    • Tenure: 0.6yrs
    • Compensation: UK£28.00k
  • Mark Allan (47yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: UK£2.43m
  • Sarah Whitney

    Independent Non-Executive Director

    • Tenure: 0.08yrs
  • Simon Clarke (53yo)

    Non-Executive Director

    • Tenure: 15yrs
    • Compensation: UK£46.00k
  • Jenefer Greenwood (61yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£52.00k
  • Ian Bull (58yo)

    Senior Independent Director

    • Tenure: 1.6yrs
    • Compensation: UK£61.00k
  • Jamie Hopkins (51yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£34.00k
  • Rob Hudson (45yo)

    CFO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£961.00k

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£1.048b
  • Shares outstanding: 222.11m
  • 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 develops land for residential, employment, leisure, retail, and educati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:34
End of Day Share Price2019/10/17 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.