NZSE:SPG

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued unattractive dividend payer.

Share Price & News

How has Stride Stapled Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.6%

SPG

0.1%

NZ REITs

3.4%

NZ Market


1 Year Return

-34.0%

SPG

-6.2%

NZ REITs

-5.4%

NZ Market

Return vs Industry: SPG underperformed the NZ REITs industry which returned -7.5% over the past year.

Return vs Market: SPG underperformed the NZ Market which returned -6% over the past year.


Shareholder returns

SPGIndustryMarket
7 Day-3.6%0.1%3.4%
30 Day-39.6%-20.7%-13.9%
90 Day-42.2%-20.3%-17.4%
1 Year-30.6%-34.0%-2.2%-6.2%-2.0%-5.4%
3 Year-8.7%-23.0%30.2%12.3%29.0%13.1%
5 Yearn/a53.5%18.9%61.0%26.0%

Price Volatility Vs. Market

How volatile is Stride Stapled Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Stride Stapled Group undervalued compared to its fair value and its price relative to the market?

40.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPG (NZ$1.34) is trading below our estimate of fair value (NZ$2.27)

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


Price To Earnings Ratio

PE vs Industry: SPG is good value based on its PE Ratio (6.7x) compared to the REITs industry average (9.7x).

PE vs Market: SPG is good value based on its PE Ratio (6.7x) compared to the NZ market (15.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SPG is good value based on its PB Ratio (0.7x) compared to the NZ REITs industry average (0.9x).


Next Steps

Future Growth

How is Stride Stapled Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-18.5%

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 (-18.5% per year).

Earnings vs Market: SPG's earnings are forecast to decline over the next 3 years (-18.5% 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 (-20.9% per year).

High Growth Revenue: SPG's revenue is forecast to decline over the next 3 years (-20.9% 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 (4.9%).


Next Steps

Past Performance

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

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPG has a large one-off gain of NZ$36.3M impacting its September 30 2019 financial results.

Growing Profit Margin: SPG's current net profit margins (73.4%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: SPG's earnings have grown by 5% 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 (-28.2%) over the past year, making it difficult to compare to the REITs industry average (-4.9%).


Return on Equity

High ROE: SPG's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Stride Stapled Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: SPG's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: SPG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SPG has a sufficient allowance for bad loans.

Low Risk Liabilities: SPG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SPG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SPG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SPG has an appropriate level of bad loans.


Next Steps

Dividend

What is Stride Stapled Group's current dividend yield, its reliability and sustainability?

7.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPG's dividend (7.4%) is higher than the bottom 25% of dividend payers in the NZ market (3.49%).

High Dividend: SPG's dividend (7.4%) is low compared to the top 25% of dividend payers in the NZ market (7.89%).


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 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (127%), SPG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPG's dividends in 3 years are forecast to be covered by earnings (98.9% payout ratio).


Next Steps

Management

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

5.8yrs

Average board tenure


CEO

Philip Littlewood

2.83s

Tenure

NZ$1,000,203

Compensation

Mr. Philip Littlewood has been Chief Executive Officer of Stride Stapled Group since June 27, 2017. Mr. Littlewood serves Chief Executive Officer of Stride Investment Management Limited at Investore Proper ...


CEO Compensation Analysis

Compensation vs Market: Philip's total compensation ($USD592.12K) is about average for companies of similar size in the NZ market ($USD513.13K).

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


Board Members

NamePositionTenureCompensationOwnership
Nick Jacobson
Independent Director1.25yrsno datano data
Phillip Ling
Independent Directorno dataNZ$90.00kno data
Timothy Ian Storey
Independent Chairman11yrsNZ$155.00k0.035% NZ$170.9k
Edward Harvey
Independent Director10.58yrsNZ$100.00k0.035% NZ$170.9k
Michelle Tierney
Independent Director5.75yrsNZ$90.00kno data
Jacqueline Cheyne
Independent Director1.08yrsNZ$4.68kno data

5.8yrs

Average Tenure

Experienced Board: SPG's board of directors are considered experienced (5.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Stride Stapled Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stride Stapled Group
  • Ticker: SPG
  • Exchange: NZSE
  • Founded: 2003
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: NZ$493.225m
  • Shares outstanding: 365.35m
  • Website: https://www.strideproperty.co.nz

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPGNZSE (New Zealand Stock Exchange)YesStapled SecuritiesNZNZDJul 2016

Biography

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 Stapled Group is based in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 11:14
End of Day Share Price2020/04/03 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.