NYSE:PGRE

Stock Analysis Report

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Executive Summary

Headquartered in New York City, Paramount Group, Inc. More Details


Snowflake Analysis

Average dividend payer and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PGRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.6%

PGRE

-2.7%

US REITs

-1.5%

US Market


1 Year Return

-45.7%

PGRE

-13.8%

US REITs

12.9%

US Market

Return vs Industry: PGRE underperformed the US REITs industry which returned -13.8% over the past year.

Return vs Market: PGRE underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

PGREIndustryMarket
7 Day-6.6%-2.7%-1.5%
30 Day-2.3%-1.4%-1.8%
90 Day-8.1%0.6%6.6%
1 Year-43.5%-45.7%-10.4%-13.8%15.4%12.9%
3 Year-52.0%-56.3%12.9%-0.5%39.6%30.2%
5 Year-51.3%-57.4%49.1%19.6%93.4%71.7%

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?

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PGRE ($7.08) is trading below our estimate of fair value ($7.67)

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


Price To Earnings Ratio

PE vs Industry: PGRE is unprofitable, so we can't compare its PE Ratio to the US REITs industry average.

PE vs Market: PGRE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PGRE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PGRE is good value based on its PB Ratio (0.4x) compared to the US REITs industry average (1.5x).


Next Steps

Future Growth

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

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGRE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PGRE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PGRE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PGRE's revenue (1.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: PGRE's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGRE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Paramount Group performed over the past 5 years?

-22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGRE is currently unprofitable.

Growing Profit Margin: PGRE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PGRE is unprofitable, and losses have increased over the past 5 years at a rate of 22.6% per year.

Accelerating Growth: Unable to compare PGRE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PGRE is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (3.3%).


Return on Equity

High ROE: PGRE has a negative Return on Equity (-0.95%), as it is currently unprofitable.


Next Steps

Financial Health

How is Paramount Group's financial position?


Financial Position Analysis

Short Term Liabilities: PGRE's short term assets ($1.0B) exceed its short term liabilities ($130.2M).

Long Term Liabilities: PGRE's short term assets ($1.0B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: PGRE's debt to equity ratio (87%) is considered high.

Reducing Debt: PGRE's debt to equity ratio has increased from 56.1% to 87% over the past 5 years.

Debt Coverage: PGRE's debt is not well covered by operating cash flow (7.1%).

Interest Coverage: PGRE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

5.65%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PGRE's dividend (5.65%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: PGRE's dividend (5.65%) is in the top 25% of dividend payers in the US market (4.7%)


Stability and Growth of Payments

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.8%), PGRE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PGRE's dividends in 3 years are forecast to be well covered by earnings (44% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Albert Behler (68 yo)

6.67yrs

Tenure

US$9,356,506

Compensation

Mr. Albert P. Behler serves as Chief Executive officer, President and Chairman at Paramount Group Real Estate Advisor LLC. He has been the Chief Executive Officer, President of Paramount Group, Inc. since ...


CEO Compensation Analysis

Compensation vs Market: Albert's total compensation ($USD9.36M) is above average for companies of similar size in the US market ($USD4.57M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Albert Behler
Chairman6.67yrsUS$9.36m0.050%
$ 912.3k
Wilbur Paes
Executive VP4.5yrsUS$6.61m0.0045%
$ 81.6k
Gage Johnson
Senior VP11.33yrsUS$1.28m0%
$ 0
Peter Brindley
Executive Vice President of Leasing2.75yrsUS$2.82m0%
$ 0
David Zobel
Executive VP & Head of Acquisitionsno dataUS$2.02m0%
$ 0
Robert Simone
Director of Business Development & Investor Relationsno datano datano data
Vito Messina
Senior Vice President of Asset Managementno datano datano data
David Eaton
Senior Vice President of Leasing2.33yrsno datano data

4.5yrs

Average Tenure

50yo

Average Age

Experienced Management: PGRE's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Albert Behler
Chairman6.67yrsUS$9.36m0.050%
$ 912.3k
Colin Dyer
Independent Director1.33yrsUS$102.50k0%
$ 0
Peter Linneman
Independent Director5.83yrsUS$185.25k0.028%
$ 505.5k
Thomas Armbrust
Independent Director6.67yrsUS$175.00k0.082%
$ 1.5m
Martin Bussmann
Independent Director4.5yrsUS$169.00k0.0095%
$ 171.5k
Karin Klein
Independent Director4.5yrsUS$174.00k0.0095%
$ 171.5k
Mark Patterson
Independent Director2.33yrsUS$174.00k0%
$ 0
Katharina Otto-Bernstein
Independent Director5.83yrsUS$164.00k15.13%
$ 273.8m
Gregory Wright
Director0.33yrno datano data

4.5yrs

Average Tenure

68yo

Average Age

Experienced Board: PGRE's board of directors are considered experienced (4.5 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

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$1.809b
  • Market Cap: US$1.570b
  • Shares outstanding: 242.54m
  • 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 Analysis2020/09/22 06:26
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.