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 Analysis

6 star dividend payer and good 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

SPG

0.3%

US REITs

2.4%

US Market


1 Year Return

-70.4%

SPG

-20.3%

US REITs

-10.0%

US Market

Return vs Industry: SPG underperformed the US REITs industry which returned -26.9% over the past year.

Return vs Market: SPG underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

SPGIndustryMarket
7 Day-1.5%0.3%2.4%
30 Day-54.6%-22.2%-11.0%
90 Day-62.8%-24.2%-19.4%
1 Year-68.7%-70.4%-16.9%-20.3%-8.1%-10.0%
3 Year-63.9%-68.8%-2.8%-15.0%17.3%9.6%
5 Year-65.0%-71.8%15.9%-7.9%36.1%21.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPG ($54.06) is trading below our estimate of fair value ($279.42)

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 (7.9x) compared to the REITs industry average (22.5x).

PE vs Market: SPG is good value based on its PE Ratio (7.9x) compared to the US market (12.2x).


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 (6.7x) compared to the US REITs industry average (1.1x).


Next Steps

Future Growth

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

-3.5%

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 (-3.5% per year).

Earnings vs Market: SPG's earnings are forecast to decline over the next 3 years (-3.5% per year).

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

Revenue vs Market: SPG's revenue (1.5% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: SPG's revenue (1.5% 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 (200.5%).


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 (37%) are lower than last year (43.3%).


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 (4.3%).


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.


Next Steps

Financial Health

How is Simon Property Group's financial position?


Financial Position Analysis

Short Term Liabilities: SPG's short term assets ($1.9B) do not cover its short term liabilities ($5.9B).

Long Term Liabilities: SPG's short term assets ($1.9B) do not cover its long term liabilities ($22.2B).


Debt to Equity History and Analysis

Debt Level: SPG's debt to equity ratio (771.9%) is considered high.

Reducing Debt: SPG's debt to equity ratio has increased from 349.1% to 771.9% over the past 5 years.

Debt Coverage: SPG's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: SPG's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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

15.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPG's dividend (15.54%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: SPG's dividend (15.54%) is in the top 25% of dividend payers in the US market (5.82%)


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 (59.9%), 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

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

4.7yrs

Average management tenure


CEO

David Simon (57yo)

25.25s

Tenure

US$11,436,918

Compensation

Mr. David E. Simon serves as Chairman, CEO and President of Simon Property Group Inc. - General Partner at Simon Property Group, LP. He serves as the Chief Executive Officer of Simon Property Group, Inc. o ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD11.44M) is about average for companies of similar size in the US market ($USD12.04M).

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
Chairman25.25yrsUS$11.44m0.31% $51.4m
Brian McDade
Executive VP1.5yrsUS$1.89m0.0036% $595.8k
John Rulli
Chief Administrative Officer & President of Malls13.25yrsUS$3.45m0.011% $1.8m
Steven Fivel
General Counsel & Secretary3.25yrsUS$3.45m0.0056% $915.1k
Steven Broadwater
Senior Vice President of Financial Reporting & Operationsno datano datano data
Stanley Shashoua
Chief Investment Officerno datano datano data
Adam Reuille
Senior VP & Chief Accounting Officer1.5yrsno data0.0020% $325.9k
David Schacht
Senior VP & Chief Information Officerno datano datano data
Thomas Ward
Senior Vice President of Investor Relations6.17yrsno datano data
Ali Slocum
Vice President of Public Relationsno datano datano data

4.7yrs

Average Tenure

51yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
David Simon
Chairman25.25yrsUS$11.44m0.31% $51.4m
Reuben Leibowitz
Independent Director14.92yrsUS$331.53k0.014% $2.4m
Larry Glasscock
Lead Independent Director6.08yrsUS$356.45k0.0081% $1.3m
Richard Sokolov
Vice Chairman1.17yrsUS$4.98m0.11% $17.3m
Herbert Simon
Chairman Emeritus12.5yrsno data0.032% $5.2m
Karen Horn
Independent Director15.92yrsUS$306.46k0.0074% $1.2m
J. Smith
Independent Director27.25yrsUS$331.53k0.015% $2.5m
Allan Hubbard
Independent Director10.92yrsUS$306.46k0.0061% $1.0m
Gary Rodkin
Independent Director4.75yrsUS$291.44k0.0017% $273.2k
Daniel Smith
Independent Director10.92yrsUS$296.55k0.0049% $808.1k

11.7yrs

Average Tenure

71yo

Average Age

Experienced Board: SPG's board of directors are seasoned and experienced ( 11.7 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 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$16.459b
  • Market Cap: US$16.522b
  • Shares outstanding: 352.28m
  • 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 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 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 Analysis2020/04/07 01:53
End of Day Share Price2020/04/06 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.