NZSE:SPG

Stock Analysis Report

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Market Cap

NZ$1.2b

Last Updated

2021/08/03 17:04 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.

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 is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SPG's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

SPG

-0.7%

NZ REITs

0.6%

NZ Market


1 Year Return

26.0%

SPG

10.8%

NZ REITs

8.3%

NZ Market

Return vs Industry: SPG exceeded the NZ REITs industry which returned 10.8% over the past year.

Return vs Market: SPG exceeded the NZ Market which returned 8.3% over the past year.


Shareholder returns

SPGIndustryMarket
7 Day-0.8%-0.7%0.6%
30 Day-4.6%-0.8%-0.7%
90 Day4.7%1.2%-2.8%
1 Year32.6%26.0%15.0%10.8%11.0%8.3%
3 Year54.1%31.4%48.1%30.6%39.9%22.7%
5 Year60.6%21.1%61.9%28.1%68.8%29.9%

Long-Term 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?

6.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPG (NZ$2.47) is trading below our estimate of fair value (NZ$2.64)

Significantly Below Fair Value: SPG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SPG's PE Ratio (7.5x) is in line with the NZ REITs industry average.

PE vs Market: SPG is good value based on its PE Ratio (7.5x) compared to the NZ market (21.8x).


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 overvalued based on its PB Ratio (1.2x) compared to the NZ REITs industry average (1.1x).


Future Growth

How is Stride Stapled Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-21.0%

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 (-21% per year).

Earnings vs Market: SPG's earnings are forecast to decline over the next 3 years (-21% 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 (-29.6% per year).

High Growth Revenue: SPG's revenue is forecast to decline over the next 3 years (-29.6% 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 (5.4%).


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$39.1M impacting its March 31 2021 financial results.

Growing Profit Margin: SPG became profitable in the past.


Past Earnings Growth Analysis

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

Accelerating Growth: SPG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SPG has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (61.2%).


Return on Equity

High ROE: SPG's Return on Equity (13%) is considered low.


Financial Health

How is Stride Stapled Group's financial position?


Financial Position Analysis

Short Term Liabilities: SPG's short term assets (NZ$32.4M) exceed its short term liabilities (NZ$27.6M).

Long Term Liabilities: SPG's short term assets (NZ$32.4M) do not cover its long term liabilities (NZ$338.2M).


Debt to Equity History and Analysis

Debt Level: SPG's debt to equity ratio (30%) is considered satisfactory.

Reducing Debt: SPG's debt to equity ratio has reduced from 75.8% to 30% over the past 5 years.

Debt Coverage: SPG's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: SPG's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Dividend

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

4.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPG's dividend (4.01%) is higher than the bottom 25% of dividend payers in the NZ market (2.3%).

High Dividend: SPG's dividend (4.01%) is low compared to the top 25% of dividend payers in the NZ market (4.52%).


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 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (149%), 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 (85.1% payout ratio).


Next Steps

Management

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

5.6yrs

Average board tenure


CEO

Philip Littlewood

4.17yrs

Tenure

NZ$1,373,497

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 ($USD958.61K) is above average for companies of similar size in the NZ market ($USD722.40K).

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


Board Members

Experienced Board: SPG's board of directors are considered experienced (5.6 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 29.5%.


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$1.169b
  • Shares outstanding: 473.24m
  • Website: https://www.strideproperty.co.nz

Location

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

Listings


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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 17:04
End of Day Share Price2021/08/03 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.