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

Undervalued with excellent balance sheet.

Risks

  • St. Modwen Properties is covered by less than 3 analysts.

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

6.4%

SMP

0.2%

GB Real Estate

-0.2%

GB Market


1 Year Return

13.4%

SMP

-5.0%

GB Real Estate

-1.9%

GB Market

SMP outperformed the Real Estate industry which returned -4.4% over the past year.

SMP outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.9% over the past year.


Share holder returns

SMPIndustryMarket
7 Day6.4%0.2%-0.2%
30 Day11.2%4.6%3.5%
90 Day2.9%3.0%0.6%
1 Year15.6%13.4%-1.2%-5.0%2.9%-1.9%
3 Year59.3%50.5%14.8%4.7%20.7%6.2%
5 Year30.5%19.7%9.3%-4.7%33.6%5.4%

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

St. Modwen Properties's share price is below the future cash flow value, and at a moderate discount (> 20%).

St. Modwen Properties's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

St. Modwen Properties is overvalued based on earnings compared to the GB Real Estate industry average.

St. Modwen Properties is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

St. Modwen Properties is good value based on expected growth next year.


Price Based on Value of Assets

St. Modwen Properties is good value based on assets compared to the GB Real Estate industry average.


Next Steps

Future Growth

How is St. Modwen Properties expected 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 Estimates


Future Annual Growth Analysis

St. Modwen Properties's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

St. Modwen Properties's earnings are expected to grow by 16% yearly, however this is not considered high growth (20% yearly).

St. Modwen Properties's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.

St. Modwen Properties's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

St. Modwen Properties's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

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


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

St. Modwen Properties's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

St. Modwen Properties's 1-year earnings growth exceeds its 5-year average (17% vs -25.3%)

St. Modwen Properties's earnings growth has exceeded the GB Real Estate industry average in the past year (17% vs 2.1%).


Return on Equity

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


Return on Assets

St. Modwen Properties used its assets less efficiently than the GB Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

St. Modwen Properties has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is St. Modwen Properties's financial position?


Financial Position Analysis

St. Modwen Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

St. Modwen Properties's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

St. Modwen Properties's level of debt (33.2%) 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 (55.8% vs 33.2% today).

Debt is not well covered by operating cash flow (4.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

2.54%

Expected Dividend Yield


Dividend Yield and Payments Analysis

St. Modwen Properties's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).

St. Modwen Properties's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.44%).

St. Modwen Properties has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but St. Modwen Properties only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


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?

2.7yrs

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

Mark's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

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


Management Age and Tenure

2.7yrs

Average Tenure

The tenure for the St. Modwen Properties management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

53yo

Average Age

The average tenure for the St. Modwen Properties board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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: 2.7yrs
  • Dave Smith

    Managing Director of St. Modwen Homes

    • Tenure: 3.8yrs
  • Andrew Eames

    General Counsel & Company Secretary

    • Tenure: 1.8yrs
  • Rob Hudson (45yo)

    CFO & Executive Director

    • Tenure: 4yrs
    • 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: 1.3yrs
  • Rob Flavell

    Head of Major Projects of Midlands & North

    • Tenure: 1yrs
  • Ian Romano

    Head of Commercial of Midlands & North

    • Tenure: 1yrs

Board Members

  • Danuta Gray (61yo)

    Non-executive Chairman

    • Tenure: 0.5yrs
    • Compensation: UK£28.00k
  • Mark Allan (47yo)

    CEO & Director

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

    Non-Executive Director

    • Tenure: 0yrs
  • Simon Clarke (53yo)

    Non-Executive Director

    • Tenure: 14.9yrs
    • 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: 1.5yrs
    • Compensation: UK£61.00k
  • Jamie Hopkins (51yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£34.00k
  • Rob Hudson (45yo)

    CFO & Executive Director

    • Tenure: 4yrs
    • 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£991.721m
  • 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 Analysis2019/09/20 20:34
End of Day Share Price2019/09/20 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.