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).

Snowflake

Established 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

-1.8%

SPG

2.4%

US REITs

0.9%

US Market


1 Year Return

-17.7%

SPG

15.7%

US REITs

16.8%

US Market

Return vs Industry: SPG underperformed the US REITs industry which returned 15.7% over the past year.

Return vs Market: SPG underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

SPGIndustryMarket
7 Day-1.8%2.4%0.9%
30 Day0.6%-2.0%4.5%
90 Day2.3%1.7%6.2%
1 Year-13.4%-17.7%20.6%15.7%19.4%16.8%
3 Year-4.3%-16.9%40.0%22.5%47.5%38.0%
5 Year3.6%-15.7%57.1%24.4%62.0%44.1%

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?

40.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPG ($150.84) is trading below our estimate of fair value ($251.76)

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 (20.2x) compared to the REITs industry average (38.7x).

PE vs Market: SPG is poor value based on its PE Ratio (20.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SPG is overvalued based on its PB Ratio (17.6x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Simon Property Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-0.05%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPG's earnings are forecast to decline over the next 3 years (-0.05% per year).

Earnings vs Market: SPG's earnings are forecast to decline over the next 3 years (-0.05% per year).

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

Revenue vs Market: SPG's revenue (2.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SPG's revenue (2.5% 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 (165.8%).


Next Steps

Past Performance

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

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPG has high quality earnings.

Growing Profit Margin: SPG's current net profit margins (40.6%) are lower than last year (41%).


Past Earnings Growth Analysis

Earnings Trend: SPG's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: SPG's earnings growth over the past year (0.3%) is below its 5-year average (9.9% per year).

Earnings vs Industry: SPG earnings growth over the past year (0.3%) underperformed the REITs industry 8.7%.


Return on Equity

High ROE: Whilst SPG's Return on Equity (80.61%) 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 0.2x debt).


Financial Institutions Analysis

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

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?

5.57%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years5.7%

Current dividend yield vs market & industry

Notable Dividend: SPG's dividend (5.57%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: SPG's dividend (5.57%) is in the top 25% of dividend payers in the US market (3.68%)


Stability and Growth of Payments

Stable Dividend: SPG's dividend payments have been volatile 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 (57.9%), 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

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

4.3yrs

Average management tenure


CEO

David Simon (57yo)

24.8yrs

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 ($USD11.44M) is about average for companies of similar size in the US market ($USD11.07M).

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


Management Age and Tenure

4.3yrs

Average Tenure

50yo

Average Age

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


Board Age and Tenure

11.3yrs

Average Tenure

71yo

Average Age

Experienced Board: SPG's board of directors are seasoned and experienced ( 11.3 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.


Recent Insider Transactions

SellUS$1,613,71717 May 19
John Rulli
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer & President of Malls
Shares9,160
Max PriceUS$176.17

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Simon (57yo)

    Chairman

    • Tenure: 24.8yrs
    • Compensation: US$11.44m
  • John Rulli (63yo)

    Chief Administrative Officer & President of Malls

    • Tenure: 12.8yrs
    • Compensation: US$3.45m
  • Steve Fivel (58yo)

    General Counsel & Secretary

    • Tenure: 2.8yrs
    • Compensation: US$3.45m
  • David Schacht

    Senior VP & Chief Information Officer

    • Tenure: 0yrs
  • Tom Ward (50yo)

    Senior Vice President of Investor Relations

    • Tenure: 5.8yrs
  • Stanley Shashoua (48yo)

    Chief Investment Officer

    • Tenure: 0yrs
  • Mikael Thygesen

    Chief Marketing Officer & President of Simon Brand Ventures

    • Tenure: 0yrs
  • Adam Reuille (44yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.1yrs
  • Brian McDade (40yo)

    Executive VP

    • Tenure: 1.1yrs
    • Compensation: US$1.89m
  • Ali Slocum

    Vice President of Public Relations

    • Tenure: 0yrs

Board Members

  • Reuben Leibowitz (71yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$331.53k
  • Larry Glasscock (71yo)

    Lead Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$356.45k
  • David Simon (57yo)

    Chairman

    • Tenure: 24.8yrs
    • Compensation: US$11.44m
  • Rick Sokolov (69yo)

    Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: US$4.98m
  • Herb Simon (84yo)

    Chairman Emeritus

    • Tenure: 12.1yrs
  • Karen Horn (76yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$306.46k
  • Al Smith (78yo)

    Independent Director

    • Tenure: 26.8yrs
    • Compensation: US$331.53k
  • Allan Hubbard (71yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$306.46k
  • Gary Rodkin (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$291.44k
  • Daniel Smith (62yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$296.55k

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$54.356b
  • Market Cap: US$47.169b
  • Shares outstanding: 353.62m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:43
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
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.