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SPG

Stride Property Group NZSE:SPG Stock Report

Last Price

NZ$1.63

Market Cap

NZ$880.7m

7D

1.2%

1Y

-31.5%

Updated

23 Jun, 2022

Data

Company Financials +
SPG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends1/6

SPG Stock Overview

Stride Stapled Group is a real estate investment firm specializing in co-investments and investments in commercial, retail, and industrial real estate properties.

Stride Property Group Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Stride Property Group
Historical stock prices
Current Share PriceNZ$1.63
52 Week HighNZ$2.71
52 Week LowNZ$1.60
Beta0.73
1 Month Change-5.78%
3 Month Change-17.68%
1 Year Change-31.51%
3 Year Change-25.91%
5 Year Change-5.78%
Change since IPO-17.68%

Recent News & Updates

Shareholder Returns

SPGNZ REITsNZ Market
7D1.2%1.4%1.7%
1Y-31.5%-16.6%-17.4%

Return vs Industry: SPG underperformed the NZ REITs industry which returned -17% over the past year.

Return vs Market: SPG underperformed the NZ Market which returned -18% over the past year.

Price Volatility

Is SPG's price volatile compared to industry and market?
SPG volatility
SPG Average Weekly Movement3.2%
REITs Industry Average Movement3.3%
Market Average Movement4.3%
10% most volatile stocks in NZ Market8.6%
10% least volatile stocks in NZ Market2.9%

Stable Share Price: SPG is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SPG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003n/aPhilip Littlewoodhttps://www.strideproperty.co.nz

Stride Stapled Group is a real estate investment firm specializing in co-investments and investments in commercial, retail, and industrial real estate properties. Investment properties comprise of freehold land, leasehold land, buildings and improvements that are held either to earn rental income or for capital appreciation or both. It seeks to invest in New Zealand.

Stride Property Group Fundamentals Summary

How do Stride Property Group's earnings and revenue compare to its market cap?
SPG fundamental statistics
Market CapNZ$880.74m
Earnings (TTM)NZ$112.29m
Revenue (TTM)NZ$178.90m

7.8x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPG income statement (TTM)
RevenueNZ$178.90m
Cost of RevenueNZ$27.72m
Gross ProfitNZ$151.18m
Other ExpensesNZ$38.89m
EarningsNZ$112.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.21
Gross Margin84.50%
Net Profit Margin62.77%
Debt/Equity Ratio28.0%

How did SPG perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

134%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SPG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SPG?

Other financial metrics that can be useful for relative valuation.

SPG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7x
Enterprise Value/EBITDA9.7x
PEG Ratio-1.4x

Price to Earnings Ratio vs Peers

How does SPG's PE Ratio compare to its peers?

SPG PE Ratio vs Peers
The above table shows the PE ratio for SPG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.2x

Price-To-Earnings vs Peers: SPG is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (11.2x).


Price to Earnings Ratio vs Industry

How does SPG's PE Ratio compare vs other companies in the REITs Industry?

Price-To-Earnings vs Industry: SPG is expensive based on its Price-To-Earnings Ratio (7.8x) compared to the NZ REITs industry average (4.7x)


Price to Earnings Ratio vs Fair Ratio

What is SPG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SPG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.8x
Fair PE Ratio8.6x

Price-To-Earnings vs Fair Ratio: SPG is good value based on its Price-To-Earnings Ratio (7.8x) compared to the estimated Fair Price-To-Earnings Ratio (8.6x).


Share Price vs Fair Value

What is the Fair Price of SPG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SPG (NZ$1.63) is trading below our estimate of fair value (NZ$3.52)

Significantly Below Fair Value: SPG is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: SPG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Stride Property Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-5.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPG's earnings are forecast to decline over the next 3 years (-5.6% per year).

Earnings vs Market: SPG's earnings are forecast to decline over the next 3 years (-5.6% per year).

High Growth Earnings: SPG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SPG's revenue is expected to decline over the next 3 years (-28.1% per year).

High Growth Revenue: SPG's revenue is forecast to decline over the next 3 years (-28.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPG's Return on Equity is forecast to be low in 3 years time (5%).


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Past Performance

How has Stride Property Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SPG has high quality earnings.

Growing Profit Margin: SPG's current net profit margins (62.8%) are lower than last year (86.3%).


Past Earnings Growth Analysis

Earnings Trend: SPG's earnings have grown by 10.7% per year over the past 5 years.

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

Earnings vs Industry: SPG had negative earnings growth (-14.9%) over the past year, making it difficult to compare to the REITs industry average (-2.3%).


Return on Equity

High ROE: SPG's Return on Equity (9.1%) is considered low.


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Financial Health

How is Stride Property Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SPG's short term assets (NZ$120.6M) exceed its short term liabilities (NZ$35.1M).

Long Term Liabilities: SPG's short term assets (NZ$120.6M) do not cover its long term liabilities (NZ$376.2M).


Debt to Equity History and Analysis

Debt Level: SPG's net debt to equity ratio (26.3%) is considered satisfactory.

Reducing Debt: SPG's debt to equity ratio has reduced from 58.4% to 28% over the past 5 years.

Debt Coverage: SPG's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: SPG's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet


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Dividend

What is Stride Property Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.08%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SPG's dividend (6.08%) is higher than the bottom 25% of dividend payers in the NZ market (3.07%).

High Dividend: SPG's dividend (6.08%) is low compared to the top 25% of dividend payers in the NZ market (6.31%).


Stability and Growth of Payments

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

Growing Dividend: SPG has only been paying a dividend for 5 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (133.7%), SPG's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (147.4%), SPG's dividend payments are not well covered by cash flows.


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Management

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

4.1yrs

Average board tenure


CEO

Philip Littlewood

5yrs

Tenure

NZ$1,978,184

Compensation

Mr. Philip Littlewood, BProp, BCom, MBA, has been Chief Executive Officer of Stride Stapled Group since June 27, 2017. Mr. Littlewood serves Chief Executive Officer of Stride Investment Management Limited...


CEO Compensation Analysis

Compensation vs Market: Philip's total compensation ($USD1.25M) is above average for companies of similar size in the NZ market ($USD740.82K).

Compensation vs Earnings: Philip's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

Experienced Board: SPG's board of directors are considered experienced (4.1 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 14.2%.


Top Shareholders

Company Information

Stride Property Group's employee growth, exchange listings and data sources


Key Information

  • Name: Stride Property Group
  • Ticker: SPG
  • Exchange: NZSE
  • Founded: 2003
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: NZ$880.739m
  • Shares outstanding: 540.33m
  • Website: https://www.strideproperty.co.nz

Location

  • Stride Property Group
  • 34 Shortland Street
  • Level 12
  • Auckland
  • 1010
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/23 00:00
End of Day Share Price2022/06/23 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.