NYSE:SPG

Stock Analysis Report

Executive Summary

Simon is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE:SPG).

Rewards

Trading at 49.9% below its fair value

Pays a high and reliable dividend of 5.91%

Risk Analysis

No risks detected for SPG from our risk checks.


Snowflake Analysis

6 star dividend payer and fair value.


Similar Companies

Share Price & News

How has Simon Property 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

2.4%

SPG

-0.07%

US REITs

-1.0%

US Market


1 Year Return

-22.5%

SPG

16.0%

US REITs

18.0%

US Market

Return vs Industry: SPG underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: SPG underperformed the US Market which returned 18% over the past year.


Shareholder returns

SPGIndustryMarket
7 Day2.4%-0.07%-1.0%
30 Day-3.4%3.3%0.6%
90 Day-3.7%8.1%7.9%
1 Year-18.2%-22.5%20.7%16.0%20.4%18.0%
3 Year-10.6%-22.8%37.9%20.6%48.0%38.5%
5 Year-7.4%-25.3%60.3%27.3%72.2%53.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

49.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPG ($142.25) is trading below our estimate of fair value ($283.81)

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


Price To Earnings Ratio

PE vs Industry: SPG is good value based on its PE Ratio (20.9x) compared to the REITs industry average (37.2x).

PE vs Market: SPG is poor value based on its PE Ratio (20.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SPG is poor value based on its PEG Ratio (16.3x)


Price to Book Ratio

PB vs Industry: SPG is overvalued based on its PB Ratio (17.6x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Simon Property Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPG's forecast earnings growth (1.3% per year) is below the savings rate (1.7%).

Earnings vs Market: SPG's earnings (1.3% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: SPG's earnings are forecast to grow, but not significantly.

Revenue vs Market: SPG's revenue (1.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SPG's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPG's Return on Equity is forecast to be very high in 3 years time (186.6%).


Next Steps

Past Performance

How has Simon Property Group performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPG has high quality earnings.

Growing Profit Margin: SPG's current net profit margins (36.6%) are lower than last year (43.2%).


Past Earnings Growth Analysis

Earnings Trend: SPG's earnings have grown by 8.4% 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 (-13.9%) over the past year, making it difficult to compare to the REITs industry average (9.3%).


Return on Equity

High ROE: Whilst SPG's Return on Equity (77.41%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Simon Property 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: SPG has a high level of physical assets or inventory.

Debt Coverage by Assets: SPG's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPG's dividend (5.91%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SPG's dividend (5.91%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: SPG's dividends per share have been stable in the past 10 years.

Growing Dividend: SPG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.3%), SPG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPG's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

David Simon (57yo)

25.1yrs

Tenure

US$11,436,918

Compensation

Mr. David E. Simon has been the Chief Executive Officer of Simon Property Group, Inc. or its predecessor since 1995 and its Chairman since October 25, 2007 and its Director since 1993. Mr. Simon also serv ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD11.44M) is about average for companies of similar size in the US market ($USD10.79M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Simon
Chairman25.1yrsUS$11.44m0.27% $135.3m
Brian McDade
Executive VP1.3yrsUS$1.89m0.0022% $1.1m
John Rulli
Chief Administrative Officer & President of Malls13.1yrsUS$3.45m0.011% $5.5m
Steven Fivel
General Counsel & Secretary3.1yrsUS$3.45m0.0055% $2.8m
Richard Sokolov
Vice Chairman & Director24.1yrsUS$4.98m0.10% $52.0m
Steven Broadwater
Senior Vice President of Financial Reporting & Operations0yrsno data0.00060% $298.2k
Stanley Shashoua
Chief Investment Officer0yrsno datano data
Adam Reuille
Senior VP & Chief Accounting Officer1.3yrsno data0.0013% $665.9k
David Schacht
Senior VP & Chief Information Officer0yrsno datano data
Thomas Ward
Senior Vice President of Investor Relations6yrsno datano data

3.1yrs

Average Tenure

52yo

Average Age

Experienced Management: SPG's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Simon
Chairman25.1yrsUS$11.44m0.27% $135.3m
Richard Sokolov
Vice Chairman & Director24.1yrsUS$4.98m0.10% $52.0m
Reuben Leibowitz
Independent Director14.8yrsUS$331.53k0.013% $6.7m
Larry Glasscock
Lead Independent Director5.9yrsUS$356.45k0.0046% $2.3m
Herbert Simon
Chairman Emeritus12.3yrsno data0.00077% $382.6k
Karen Horn
Independent Director15.8yrsUS$306.46k0.0047% $2.3m
J. Smith
Independent Director27.1yrsUS$331.53k0.014% $7.0m
Allan Hubbard
Independent Director10.8yrsUS$306.46k0.0047% $2.3m
Gary Rodkin
Independent Director4.6yrsUS$291.44k0.0016% $780.2k
Daniel Smith
Independent Director10.8yrsUS$296.55k0.0044% $2.2m

12.3yrs

Average Tenure

71yo

Average Age

Experienced Board: SPG's board of directors are seasoned and experienced ( 12.3 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

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


Key Information

  • Name: Simon Property Group, Inc.
  • Ticker: SPG
  • Exchange: NYSE
  • Founded: 1960
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$49.693b
  • Market Cap: US$43.124b
  • Shares outstanding: 353.61m
  • Website: https://www.simon.com

Number of Employees


Location

  • Simon Property Group, Inc.
  • 225 West Washington Street
  • Indianapolis
  • Indiana
  • 46204
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPGNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1993
SQIDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1993
0L6PLSE (London Stock Exchange)YesCommon StockGBUSDDec 1993
SPGRWBAG (Wiener Boerse AG)YesCommon StockATEURDec 1993
SPG.PRJNYSE (New York Stock Exchange)PFD J 8.375%USUSDOct 2004
SIMN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.25 COM USD0.0001BRBRLMay 2019

Biography

Simon is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE:SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 01:09
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.