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

Fundamentals

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


Market Performance


7 Day Return

-1.7%

NYSE:SPG

-0.5%

US REITs

-1.6%

US Market


1 Year Return

-19.3%

NYSE:SPG

8.5%

US REITs

-3.0%

US Market

SPG underperformed the REITs industry which returned 8.5% over the past year.

SPG underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

SPGIndustryMarket
7 Day-1.7%-0.5%-1.6%
30 Day-7.8%2.5%-5.8%
90 Day-14.8%2.2%0.2%
1 Year-15.4%-19.3%13.4%8.5%-0.8%-3.0%
3 Year-21.7%-31.7%24.7%8.4%38.0%29.1%
5 Year4.9%-14.1%57.3%23.8%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Simon Property Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Simon Property Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Simon Property Group is good value based on earnings compared to the US REITs industry average.

Simon Property Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Simon Property Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Simon Property Group is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

-0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Simon Property Group's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Simon Property Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Simon Property Group's revenue growth is positive but not above the United States of America market average.

Simon Property Group's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Simon Property Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Simon Property Group is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

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

10.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Simon Property Group's year on year earnings growth rate has been positive over the past 5 years.

Simon Property Group's 1-year earnings growth is less than its 5-year average (2.7% vs 10.6%)

Simon Property Group's earnings growth has not exceeded the US REITs industry average in the past year (2.7% vs 16.9%).


Return on Equity

Whilst Simon Property Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Simon Property Group used its assets more efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Simon Property Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Simon Property Group's financial position?


Financial Position Analysis

Simon Property Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Simon Property Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Simon Property Group's level of debt (648.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (356.7% vs 648.8% today).

Debt is not well covered by operating cash flow (16.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

5.89%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Simon Property Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Simon Property Group's dividend is above the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (537.6x coverage).


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?

4.0yrs

Average management tenure


CEO

David Simon (57yo)

24.6yrs

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

David's remuneration is about average for companies of similar size in United States of America.

David's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

50yo

Average Age

The tenure for the Simon Property Group management team is about average.


Board Age and Tenure

11.8yrs

Average Tenure

71yo

Average Age

The average tenure for the Simon Property Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$1,613,71717 May 19
John Rulli
EntityIndividual
Role
Member of the Board of Directors
Chief Administrative Officer & President of Malls
Shares9,160
Max PriceUS$176.17
SellUS$1,119,12031 Oct 18
John Rulli
EntityIndividual
Role
Member of the Board of Directors
Chief Administrative Officer & President of Malls
Shares6,000
Max PriceUS$186.52

Ownership Breakdown


Management Team

  • David Simon (57yo)

    Chairman

    • Tenure: 24.6yrs
    • Compensation: US$11.44m
  • John Rulli (63yo)

    Chief Administrative Officer & President of Malls

    • Tenure: 11.8yrs
    • Compensation: US$3.45m
  • Steve Fivel (58yo)

    General Counsel & Secretary

    • Tenure: 2.6yrs
    • Compensation: US$3.45m
  • David Schacht

    Senior VP & Chief Information Officer

    • Tenure: 0.0yrs
  • Tom Ward (50yo)

    Senior Vice President of Investor Relations

    • Tenure: 5.5yrs
  • Stanley Shashoua (48yo)

    Chief Investment Officer

    • Tenure: 0.0yrs
  • Mikael Thygesen

    Chief Marketing Officer & President of Simon Brand Ventures

    • Tenure: 0.0yrs
  • Adam Reuille (44yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0.8yrs
  • Brian McDade (40yo)

    Executive VP

    • Tenure: 0.8yrs
    • Compensation: US$1.89m
  • Ali Slocum

    Vice President of Public Relations

    • Tenure: 0.0yrs

Board Members

  • Reuben Leibowitz (71yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: US$331.53k
  • Larry Glasscock (71yo)

    Lead Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$356.45k
  • David Simon (57yo)

    Chairman

    • Tenure: 24.6yrs
    • Compensation: US$11.44m
  • Rick Sokolov (69yo)

    Vice Chairman

    • Tenure: 0.5yrs
    • Compensation: US$4.98m
  • John Rulli (63yo)

    Chief Administrative Officer & President of Malls

    • Tenure: 11.8yrs
    • Compensation: US$3.45m
  • Herb Simon (84yo)

    Chairman Emeritus

    • Tenure: 11.8yrs
  • Karen Horn (76yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$306.46k
  • Al Smith (78yo)

    Director

    • Tenure: 26.6yrs
    • Compensation: US$331.53k
  • Allan Hubbard (71yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$306.46k
  • Daniel Smith (62yo)

    Director

    • Tenure: 10.3yrs
    • 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$51.814b
  • Market Cap: US$44.983b
  • Shares outstanding: 354.82m
  • 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 Analysis2019/08/24 23:48
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.