NZSE:SPG

Stock Analysis Report

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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

Moderate growth potential with mediocre balance sheet.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SPG

2.0%

NZ REITs

-0.7%

NZ Market


1 Year Return

-4.6%

SPG

-0.4%

NZ REITs

7.9%

NZ Market

Return vs Industry: SPG underperformed the NZ REITs industry which returned -1.1% over the past year.

Return vs Market: SPG underperformed the NZ Market which returned 7.5% over the past year.


Shareholder returns

SPGIndustryMarket
7 Day0%2.0%-0.7%
30 Day9.7%8.4%6.8%
90 Day15.8%13.2%7.1%
1 Year0.7%-4.6%3.4%-0.4%12.2%7.9%
3 Year64.5%39.3%61.1%40.5%48.0%28.6%
5 Yearn/a86.6%46.6%100.3%51.3%

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?

32.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SPG (NZ$2.27) is trading above our estimate of fair value (NZ$2.09)

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


Price To Earnings Ratio

PE vs Industry: SPG is poor value based on its PE Ratio (32.8x) compared to the NZ REITs industry average (21.7x).

PE vs Market: SPG is poor value based on its PE Ratio (32.8x) compared to the NZ market (23.3x).


Price to Earnings Growth Ratio

PEG Ratio: SPG is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SPG's PB Ratio (1.2x) is in line with the NZ REITs industry average.


Next Steps

Future Growth

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

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPG's forecast earnings growth (23.4% per year) is above the savings rate (2.6%).

Earnings vs Market: SPG's earnings (23.4% per year) are forecast to grow faster than the NZ market (11.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SPG's revenue is expected to decline over the next 3 years (-20.2% per year).

High Growth Revenue: SPG's revenue is forecast to decline over the next 3 years (-20.2% 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 (6.1%).


Next Steps

Past Performance

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

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPG has high quality earnings.

Growing Profit Margin: SPG's current net profit margins (25.7%) are lower than last year (76.9%).


Past Earnings Growth Analysis

Earnings Trend: SPG's earnings have declined by 3.8% 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 (-66.8%) over the past year, making it difficult to compare to the REITs industry average (-25.8%).


Return on Equity

High ROE: SPG's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Stride Stapled Group's financial position?


Financial Position Analysis

Short Term Liabilities: SPG's short term assets (NZ$147.7M) exceed its short term liabilities (NZ$30.2M).

Long Term Liabilities: SPG's short term assets (NZ$147.7M) do not cover its long term liabilities (NZ$421.9M).


Debt to Equity History and Analysis

Debt Level: SPG's debt to equity ratio (57.1%) is considered high.

Reducing Debt: SPG's debt to equity ratio has reduced from 57.5% to 57.1% over the past 5 years.

Debt Coverage: SPG's debt is not well covered by operating cash flow (7.3%).

Interest Coverage: SPG's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

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

4.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPG's dividend (4.37%) is higher than the bottom 25% of dividend payers in the NZ market (2.76%).

High Dividend: SPG's dividend (4.37%) is low compared to the top 25% of dividend payers in the NZ market (4.44%).


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 (124.3%), 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 (92.6% payout ratio).


Next Steps

Management

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

6.3yrs

Average board tenure


CEO

Philip Littlewood

3.33yrs

Tenure

NZ$937,747

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 ($USD624.42K) is about average for companies of similar size in the NZ market ($USD576.89K).

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


Board Members

NamePositionTenureCompensationOwnership
Nick Jacobson
Independent Director1.25yrsNZ$66.95kno data
Phillip Ling
Independent Directorno dataNZ$93.50kno data
Timothy Ian Storey
Independent Chairman11.5yrsNZ$162.29k0.035%
NZ$ 291.1k
Edward Harvey
Independent Director11.08yrsNZ$105.25k0.035%
NZ$ 291.1k
Michelle Tierney
Independent Director6.25yrsNZ$93.50kno data
Jacqueline Cheyne
Independent Director1.58yrsNZ$93.50kno data

6.3yrs

Average Tenure

Experienced Board: SPG's board of directors are considered experienced (6.3 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$840.309m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 10:41
End of Day Share Price2020/10/22 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.