LSE:SRE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

UK£1.3b

Last Updated

2021/08/01 17:52 UTC

Data Sources

Company Financials +

Executive Summary

Sirius Real Estate Limited, a real estate company, engages in the investment, development, and operation of commercial properties in Germany. More Details


Snowflake Analysis

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Sirius Real Estate's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SRE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SRE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

SRE

1.2%

GB Real Estate

0.3%

GB Market


1 Year Return

62.2%

SRE

36.0%

GB Real Estate

22.5%

GB Market

Return vs Industry: SRE exceeded the UK Real Estate industry which returned 35.5% over the past year.

Return vs Market: SRE exceeded the UK Market which returned 22.5% over the past year.


Shareholder returns

SREIndustryMarket
7 Day0.2%1.2%0.3%
30 Day4.6%0.6%-0.8%
90 Day17.3%1.3%1.5%
1 Year67.4%62.2%39.0%36.0%27.8%22.5%
3 Year127.0%102.0%15.3%6.2%13.3%0.9%
5 Year190.5%136.0%58.1%34.6%39.6%13.2%

Long-Term Price Volatility Vs. Market

How volatile is Sirius Real Estate's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sirius Real Estate undervalued compared to its fair value and its price relative to the market?

9.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SRE (£1.19) is trading above our estimate of fair value (£0.56)

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


Price To Earnings Ratio

PE vs Industry: SRE is good value based on its PE Ratio (9.9x) compared to the UK Real Estate industry average (19.6x).

PE vs Market: SRE is good value based on its PE Ratio (9.9x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: SRE is poor value based on its PEG Ratio (11.7x)


Price to Book Ratio

PB vs Industry: SRE is overvalued based on its PB Ratio (1.6x) compared to the GB Real Estate industry average (1x).


Future Growth

How is Sirius Real Estate forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRE's forecast earnings growth (0.8% per year) is below the savings rate (0.9%).

Earnings vs Market: SRE's earnings (0.8% per year) are forecast to grow slower than the UK market (14.8% per year).

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

Revenue vs Market: SRE's revenue is expected to decline over the next 3 years (-8.3% per year).

High Growth Revenue: SRE's revenue is forecast to decline over the next 3 years (-8.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRE's Return on Equity is forecast to be low in 3 years time (6.9%).


Past Performance

How has Sirius Real Estate performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRE has a large one-off gain of €99.0M impacting its March 31 2021 financial results.

Growing Profit Margin: SRE's current net profit margins (86.6%) are higher than last year (64.5%).


Past Earnings Growth Analysis

Earnings Trend: SRE's earnings have grown by 14.7% per year over the past 5 years.

Accelerating Growth: SRE's earnings growth over the past year (50.3%) exceeds its 5-year average (14.7% per year).

Earnings vs Industry: SRE earnings growth over the past year (50.3%) exceeded the Real Estate industry 13.6%.


Return on Equity

High ROE: SRE's Return on Equity (15.9%) is considered low.


Financial Health

How is Sirius Real Estate's financial position?


Financial Position Analysis

Short Term Liabilities: SRE's short term assets (€84.5M) exceed its short term liabilities (€68.0M).

Long Term Liabilities: SRE's short term assets (€84.5M) do not cover its long term liabilities (€525.2M).


Debt to Equity History and Analysis

Debt Level: SRE's debt to equity ratio (50.6%) is considered high.

Reducing Debt: SRE's debt to equity ratio has reduced from 76.5% to 50.6% over the past 5 years.

Debt Coverage: SRE's debt is not well covered by operating cash flow (15.1%).

Interest Coverage: SRE's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet


Dividend

What is Sirius Real Estate current dividend yield, its reliability and sustainability?

2.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SRE's dividend (2.79%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: SRE's dividend (2.79%) is low compared to the top 25% of dividend payers in the UK market (3.94%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SRE has been paying a dividend for less than 10 years.

Growing Dividend: SRE's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), SRE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRE's dividends in 3 years are forecast to be covered by earnings (60.2% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Andrew Coombs (56 yo)

9.5yrs

Tenure

€2,795,766

Compensation

Mr. Andrew James Coombs has been the Chief Executive Officer at Sirius Facilities GmbH since December 2009. He joined the Sirius Facilities group in January 2010. Mr. Coombs has been the Chief Executive Of...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD3.32M) is above average for companies of similar size in the UK market ($USD1.38M).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SRE's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: SRE's board of directors are not considered experienced ( 2.8 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: SRE insiders have only sold shares 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

Sirius Real Estate Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sirius Real Estate Limited
  • Ticker: SRE
  • Exchange: LSE
  • Founded: 2007
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: UK£1.253b
  • Shares outstanding: 1.05b
  • Website: https://www.sirius-real-estate.com

Number of Employees


Location

  • Sirius Real Estate Limited
  • Trafalgar Court
  • 2nd Floor
  • Saint Peter Port
  • GY1 3EL
  • Guernsey

Listings


Biography

Sirius Real Estate Limited, a real estate company, engages in the investment, development, and operation of commercial properties in Germany. The company owns and manages offices; warehouses, storerooms, a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 17:52
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.