SM Investments (PSE:SM) - Share price, News & Analysis

SM fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	5/6
Financial Health	3/6
Dividends	0/6

SM Stock Overview

SM Investments Corporation, together with its subsidiaries, engages in the property, retail, and banking and other businesses in the Philippines.

Rewards

Trading at 70.4% below our estimate of its fair value

Earnings are forecast to grow 21.1% per year

Earnings grew by 72% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

SM Investments Competitors

Ayala

PSE:AC

₱421.7b

Ayala Land

PSE:ALI

₱429.4b

Puregold Price Club

PSE:PGOLD

₱97.2b

Robinsons Land

PSE:RLC

₱95.5b

Price History & Performance

Summary of all time highs, changes and price drops for SM Investments
Historical stock prices
Current Share Price	₱845.00
52 Week High	₱1,041.00
52 Week Low	₱789.00
Beta	0.52
1 Month Change	-2.76%
3 Month Change	-1.74%
1 Year Change	-7.14%
3 Year Change	-8.20%
5 Year Change	8.75%
Change since IPO	557.42%

Shareholder Returns

	SM	PH Industrials	PH Market
7D	7.1%	5.6%	4.6%
1Y	-7.1%	-0.3%	7.9%

Return vs Industry: SM underperformed the PH Industrials industry which returned -0.3% over the past year.

Return vs Market: SM underperformed the PH Market which returned 7.9% over the past year.

Price Volatility

Is SM's price volatile compared to industry and market?
SM volatility
SM Average Weekly Movement	4.7%
Industrials Industry Average Movement	4.9%
Market Average Movement	5.6%
10% most volatile stocks in PH Market	10.0%
10% least volatile stocks in PH Market	3.2%

Stable Share Price: SM is not significantly more volatile than the rest of PH stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SM's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1958	n/a	Frederic DyBuncio	https://www.sminvestments.com

SM Investments Corporation, together with its subsidiaries, engages in the property, retail, and banking and other businesses in the Philippines. The company’s Property segment is involved in the mall, residential, and commercial development, as well as the operation of hotels and convention centers. This segment also develops, conducts, operates, and maintains commercial shopping centers, as well as conducts, operates, and maintains shopping center spaces, amusement centers, and cinema theaters within the shopping centers.

SM Investments Fundamentals Summary

How do SM Investments's earnings and revenue compare to its market cap?
SM fundamental statistics
Market Cap	₱1.02t
Earnings (TTM)	₱41.03b
Revenue (TTM)	₱443.32b

24.8x

P/E Ratio

2.3x

P/S Ratio

Is SM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SM income statement (TTM)
Revenue	₱443.32b
Cost of Revenue	₱265.89b
Gross Profit	₱177.43b
Other Expenses	₱136.40b
Earnings	₱41.03b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	34.06
Gross Margin	40.02%
Net Profit Margin	9.25%
Debt/Equity Ratio	75.8%

How did SM perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

12%

Payout Ratio

Valuation

Is SM Investments undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SM (₱845) is trading below our estimate of fair value (₱2853.05)

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

Price To Earnings Ratio

PE vs Industry: SM is poor value based on its PE Ratio (24.8x) compared to the PH Industrials industry average (11.3x).

PE vs Market: SM is poor value based on its PE Ratio (24.8x) compared to the PH market (11.6x).

Price to Earnings Growth Ratio

PEG Ratio: SM is poor value based on its PEG Ratio (1.2x)

Price to Book Ratio

PB vs Industry: SM is overvalued based on its PB Ratio (2.3x) compared to the PH Industrials industry average (1.1x).

Future Growth

How is SM Investments forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SM's forecast earnings growth (21.1% per year) is above the savings rate (4.9%).

Earnings vs Market: SM's earnings (21.1% per year) are forecast to grow faster than the PH market (21% per year).

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

Revenue vs Market: SM's revenue (6% per year) is forecast to grow slower than the PH market (10.4% per year).

High Growth Revenue: SM's revenue (6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SM's Return on Equity is forecast to be low in 3 years time (12.5%).

Past Performance

How has SM Investments performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SM has high quality earnings.

Growing Profit Margin: SM's current net profit margins (9.3%) are higher than last year (6.3%).

Past Earnings Growth Analysis

Earnings Trend: SM's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: SM's earnings growth over the past year (72%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: SM earnings growth over the past year (72%) exceeded the Industrials industry 57.4%.

Return on Equity

High ROE: SM's Return on Equity (8.9%) is considered low.

Financial Health

How is SM Investments's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SM's short term assets (₱306.3B) exceed its short term liabilities (₱244.4B).

Long Term Liabilities: SM's short term assets (₱306.3B) do not cover its long term liabilities (₱482.4B).

Debt to Equity History and Analysis

Debt Level: SM's net debt to equity ratio (60.8%) is considered high.

Reducing Debt: SM's debt to equity ratio has reduced from 80.4% to 75.8% over the past 5 years.

Debt Coverage: SM's debt is not well covered by operating cash flow (12%).

Interest Coverage: SM's interest payments on its debt are well covered by EBIT (4.8x coverage).

Balance Sheet

Dividend

What is SM Investments's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SM's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the PH market (1.36%).

High Dividend: SM's dividend (0.5%) is low compared to the top 25% of dividend payers in the PH market (4.77%).

Stability and Growth of Payments

Stable Dividend: SM is not paying a notable dividend for the PH market, therefore no need to check if payments are stable.

Growing Dividend: SM is not paying a notable dividend for the PH market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: SM is not paying a notable dividend for the PH market.

Cash Payout to Shareholders

Cash Flow Coverage: SM is not paying a notable dividend for the PH market.

Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure

CEO

Frederic DyBuncio (61 yo)

5.08yrs

Tenure

Mr. Frederic C. DyBuncio, BBM, MBA, has been Adviser to the Board of Pacific Online Systems Corporation since July 25, 2017. Mr. DyBuncio has been the President and Executive Director of SM Investments Cor...

Leadership Team

Experienced Management: SM's management team is seasoned and experienced (5.3 years average tenure).

Board Members

Experienced Board: SM's board of directors are seasoned and experienced ( 11.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: SM 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31