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Market Cap

US$43.0b

Last Updated

2021/04/16 22:09 UTC

Data Sources

Company Financials +

Executive Summary

Simon is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). More Details


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

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


Market Performance


7 Day Return

1.0%

SPG

2.4%

US REITs

1.3%

US Market


1 Year Return

108.7%

SPG

26.1%

US REITs

53.9%

US Market

Return vs Industry: SPG exceeded the US REITs industry which returned 29.9% over the past year.

Return vs Market: SPG exceeded the US Market which returned 57.5% over the past year.


Shareholder returns

SPGIndustryMarket
7 Day1.0%2.4%1.3%
30 Day-0.9%3.9%3.3%
90 Day25.9%13.5%8.9%
1 Year122.8%108.7%31.4%26.1%56.6%53.9%
3 Year-6.1%-20.5%46.4%28.7%64.4%53.6%
5 Year-25.9%-42.1%53.4%22.5%120.4%95.7%

Long-Term 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?

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPG ($114.57) is trading below our estimate of fair value ($177.57)

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 (31.9x) compared to the US REITs industry average (47.3x).

PE vs Market: SPG is poor value based on its PE Ratio (31.9x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: SPG is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: SPG is overvalued based on its PB Ratio (12.6x) compared to the US REITs industry average (1.8x).


Future Growth

How is Simon Property Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPG's forecast earnings growth (8.9% per year) is above the savings rate (2%).

Earnings vs Market: SPG's earnings (8.9% per year) are forecast to grow slower than the US market (18.4% per year).

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

Revenue vs Market: SPG's revenue (5% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: SPG's revenue (5% 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 (109.1%).


Past Performance

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

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPG has high quality earnings.

Growing Profit Margin: SPG's current net profit margins (24.1%) are lower than last year (37%).


Past Earnings Growth Analysis

Earnings Trend: SPG's earnings have declined by 0.2% 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 (-47.1%) over the past year, making it difficult to compare to the REITs industry average (-4.4%).


Return on Equity

High ROE: Whilst SPG's Return on Equity (34.92%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Simon Property Group's financial position?


Financial Position Analysis

Short Term Liabilities: SPG's short term assets ($2.6B) do not cover its short term liabilities ($5.8B).

Long Term Liabilities: SPG's short term assets ($2.6B) do not cover its long term liabilities ($25.3B).


Debt to Equity History and Analysis

Debt Level: SPG's debt to equity ratio (730.5%) is considered high.

Reducing Debt: SPG's debt to equity ratio has increased from 427.4% to 730.5% over the past 5 years.

Debt Coverage: SPG's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: SPG's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Dividend

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

4.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPG's dividend (4.54%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: SPG's dividend (4.54%) is in the top 25% of dividend payers in the US market (3.48%)


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 reasonably low payout ratio (44.6%), SPG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPG's dividends in 3 years are forecast to be covered by earnings (60.7% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

David Simon (58 yo)

26.25yrs

Tenure

US$8,966,782

Compensation

Mr. David E. Simon has been the Chief Executive Officer of Simon Property Group, Inc., a general partner of Simon Property Group, LP or its predecessor since 1995 and has been its Chairman since October 25...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD8.97M) is about average for companies of similar size in the US market ($USD11.02M).

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


Leadership Team

Experienced Management: SPG's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: SPG's board of directors are seasoned and experienced ( 11.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SPG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.


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$43.022b
  • Market Cap: US$37.601b
  • Shares outstanding: 375.51m
  • Website: https://www.simon.com

Number of Employees


Location

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

Listings


Biography

Simon is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properti...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:09
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.