NYSE:PGRE

Stock Analysis Report

Executive Summary

Headquartered in New York City, Paramount Group, Inc.

Snowflake

Fundamentals

Questionable track record unattractive dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

PGRE

0.9%

US REITs

0.07%

US Market


1 Year Return

-7.0%

PGRE

21.8%

US REITs

8.9%

US Market

Return vs Industry: PGRE underperformed the US REITs industry which returned 21.8% over the past year.

Return vs Market: PGRE underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

PGREIndustryMarket
7 Day2.3%0.9%0.07%
30 Day-1.2%2.2%-0.3%
90 Day-5.3%7.9%-1.6%
1 Year-4.2%-7.0%27.0%21.8%11.3%8.9%
3 Year-8.9%-15.9%37.5%20.2%46.3%36.8%
5 Yearn/a65.5%30.4%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

63.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PGRE ($13.11) is trading above our estimate of fair value ($10.65)

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


Price To Earnings Ratio

PE vs Industry: PGRE is poor value based on its PE Ratio (63.3x) compared to the REITs industry average (37.3x).

PE vs Market: PGRE is poor value based on its PE Ratio (63.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PGRE is good value based on its PB Ratio (0.8x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

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

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGRE's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: PGRE's earnings are forecast to decline over the next 3 years (-0.4% per year).

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

Revenue vs Market: PGRE's revenue (5.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PGRE's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGRE's Return on Equity is forecast to be low in 3 years time (0.6%).


Next Steps

Past Performance

How has Paramount Group performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PGRE's earnings have grown by 1% per year over the past 5 years.

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

Earnings vs Industry: PGRE has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (16.9%).


Return on Equity

High ROE: PGRE's Return on Equity (1.4%) is considered low.


Return on Assets

ROA vs Industry: PGRE's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: PGRE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Paramount 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: PGRE has a high level of physical assets or inventory.

Debt Coverage by Assets: PGRE's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.05%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PGRE's dividend (3.05%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PGRE's dividend (3.05%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

Growing Dividend: PGRE's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.5%), PGRE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PGRE's dividends in 3 years are not forecast to be well covered by earnings (895.1% payout ratio).


Next Steps

Management

What is the CEO of Paramount Group's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Albert Behler (67yo)

5.8yrs

Tenure

US$9,778,009

Compensation

Mr. Albert P. Behler has been the Chief Executive Officer, President of Paramount Group, Inc. since October 1991 and has been its Chairman since 2014. Prior to joining the firm, Mr. Behler joined Thyssen e ...


CEO Compensation Analysis

Compensation vs. Market: Albert's total compensation ($USD9.78M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

4.7yrs

Average Tenure

49yo

Average Age

Experienced Management: PGRE's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

67yo

Average Age

Experienced Board: PGRE's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rob Simone

    Director of Business Development & Investor Relations

    • Tenure: 0yrs
  • Albert Behler (67yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: US$9.78m
  • Vito Messina (56yo)

    Senior Vice President of Asset Management

    • Tenure: 5.8yrs
  • Gage Johnson (57yo)

    Senior VP

    • Tenure: 10.4yrs
    • Compensation: US$1.09m
  • Wilbur Paes (42yo)

    Executive VP

    • Tenure: 3.6yrs
    • Compensation: US$3.86m
  • Peter Brindley (42yo)

    Executive Vice President of Leasing

    • Tenure: 1.8yrs
    • Compensation: US$2.25m
  • David Eaton

    Senior Vice President of Leasing

    • Tenure: 1.4yrs
  • David Zobel (33yo)

    Executive VP & Head of Acquisitions

    • Tenure: 0yrs
    • Compensation: US$1.67m

Board Members

  • Colin Dyer (67yo)

    Director

    • Tenure: 0.4yrs
  • Peter Linneman (68yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$179.00k
  • Lizanne Galbreath (61yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$184.00k
  • Dan Emmett (79yo)

    Lead Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$229.00k
  • Thomas Armbrust (67yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$175.00k
  • Martin Bussmann (67yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$169.00k
  • Karin Klein (46yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$174.00k
  • Mark Patterson (59yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$108.44k
  • Albert Behler (67yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: US$9.78m
  • Katharina Otto-Bernstein (55yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$164.00k

Company Information

Paramount Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Paramount Group, Inc.
  • Ticker: PGRE
  • Exchange: NYSE
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$3.360b
  • Market Cap: US$3.069b
  • Shares outstanding: 258.89m
  • Website: https://www.paramount-group.com

Number of Employees


Location

  • Paramount Group, Inc.
  • 1633 Broadway
  • Suite 1801
  • New York
  • New York
  • 10019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PGRENYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2014
6PMDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2014

Biography

Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties locate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:23
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.