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SRG

Seritage Growth Properties NYSE:SRG Stock Report

Last Price

US$5.47

Market Cap

US$310.1m

7D

-1.8%

1Y

-69.6%

Updated

28 Jun, 2022

Data

Company Financials
SRG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health1/6
Dividends0/6

SRG Stock Overview

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 166 wholly-owned properties and 29 unconsolidated properties totaling approximately 30.4 million square feet of space across 44 states and Puerto Rico.

Seritage Growth Properties Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Seritage Growth Properties
Historical stock prices
Current Share PriceUS$5.47
52 Week HighUS$18.61
52 Week LowUS$5.15
Beta2.14
1 Month Change-34.57%
3 Month Change-56.35%
1 Year Change-69.56%
3 Year Change-87.25%
5 Year Change-87.18%
Change since IPO-85.26%

Recent News & Updates

Jun 13
Health Check: How Prudently Does Seritage Growth Properties (NYSE:SRG) Use Debt?

Health Check: How Prudently Does Seritage Growth Properties (NYSE:SRG) Use Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jun 13

Seritage: Berkshire Is Not Taking A Haircut Here

We have generally had a negative outlook on Seritage. The stock has agreed 100% and then some. The final meltdown phase has gone too far and the pending asset/company sales likely extracts value. There are two good ways to play this.

Shareholder Returns

SRGUS Real EstateUS Market
7D-1.8%3.6%1.7%
1Y-69.6%-51.5%-20.4%

Return vs Industry: SRG underperformed the US Real Estate industry which returned -51.4% over the past year.

Return vs Market: SRG underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is SRG's price volatile compared to industry and market?
SRG volatility
SRG Average Weekly Movement8.0%
Real Estate Industry Average Movement8.4%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: SRG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SRG's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201540Andrea Olshanhttps://www.seritage.com

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 166 wholly-owned properties and 29 unconsolidated properties totaling approximately 30.4 million square feet of space across 44 states and Puerto Rico. The Company was formed to unlock the underlying real estate value of a high-quality retail portfolio it acquired from Sears Holdings in July 2015. The Company’s mission is to create and own revitalized shopping, dining, entertainment and mixed-use destinations that provide enriched experiences for consumers and local communities, and create long-term value for our shareholders.

Seritage Growth Properties Fundamentals Summary

How do Seritage Growth Properties's earnings and revenue compare to its market cap?
SRG fundamental statistics
Market CapUS$310.08m
Earnings (TTM)-US$77.53m
Revenue (TTM)US$105.77m

2.3x

P/S Ratio

-3.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRG income statement (TTM)
RevenueUS$105.77m
Cost of RevenueUS$78.65m
Gross ProfitUS$27.12m
Other ExpensesUS$104.65m
Earnings-US$77.53m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.78
Gross Margin25.64%
Net Profit Margin-73.31%
Debt/Equity Ratio185.2%

How did SRG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SRG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SRG?

Other financial metrics that can be useful for relative valuation.

SRG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue16.9x
Enterprise Value/EBITDA-144x
PEG Ration/a

Price to Sales Ratio vs Peers

How does SRG's PS Ratio compare to its peers?

SRG PS Ratio vs Peers
The above table shows the PS ratio for SRG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average4.4x
TCI Transcontinental Realty Investors
6.6xn/aUS$348.6m
ARL American Realty Investors
4.4xn/aUS$238.2m
QK Q&K International Group
2.2xn/aUS$334.6m
NEN New England Realty Associates Limited Partnership
4.4xn/aUS$281.5m
SRG Seritage Growth Properties
2.3xn/aUS$310.1m

Price-To-Sales vs Peers: SRG is good value based on its Price-To-Sales Ratio (2.3x) compared to the peer average (4.4x).


Price to Earnings Ratio vs Industry

How does SRG's PE Ratio compare vs other companies in the US Real Estate Industry?

Price-To-Sales vs Industry: SRG is expensive based on its Price-To-Sales Ratio (2.3x) compared to the US Real Estate industry average (1.3x)


Price to Sales Ratio vs Fair Ratio

What is SRG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SRG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SRG's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of SRG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate SRG's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SRG's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SRG's PEG Ratio to determine if it is good value.


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Future Growth

How is Seritage Growth Properties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


37.7%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Seritage Growth Properties has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Take a look at our analysis of SRG’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • Seritage Growth Properties competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Seritage Growth Properties performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-12.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SRG is currently unprofitable.

Growing Profit Margin: SRG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SRG is unprofitable, and losses have increased over the past 5 years at a rate of 12.1% per year.

Accelerating Growth: Unable to compare SRG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SRG is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (116.4%).


Return on Equity

High ROE: SRG has a negative Return on Equity (-12.23%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Seritage Growth Properties's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SRG's short term assets ($191.2M) exceed its short term liabilities ($96.5M).

Long Term Liabilities: SRG's short term assets ($191.2M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: SRG's net debt to equity ratio (178.3%) is considered high.

Reducing Debt: SRG's debt to equity ratio has increased from 85.4% to 185.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SRG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SRG has less than a year of cash runway if free cash flow continues to reduce at historical rates of 70.1% each year


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Dividend

What is Seritage Growth Properties's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SRG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SRG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SRG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SRG's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: SRG is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SRG has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.2yrs

Average management tenure


CEO

Andrea Olshan (41 yo)

1.25yrs

Tenure

US$5,535,608

Compensation

Ms. Andrea L. Olshan has been Chief Executive Officer, President and Director of Seritage Growth Properties since March 16, 2021. Ms. Olshan was the Chief Executive Officer of Olshan Properties and respons...


CEO Compensation Analysis

Compensation vs Market: Andrea's total compensation ($USD5.54M) is above average for companies of similar size in the US market ($USD2.75M).

Compensation vs Earnings: Insufficient data to compare Andrea's compensation with company performance.


Leadership Team

Experienced Management: SRG's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: SRG's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Seritage Growth Properties's employee growth, exchange listings and data sources


Key Information

  • Name: Seritage Growth Properties
  • Ticker: SRG
  • Exchange: NYSE
  • Founded: 2015
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Implied Market Cap: US$310.080m
  • Market Cap: US$238.915m
  • Shares outstanding: 56.03m
  • Website: https://www.seritage.com

Number of Employees


Location

  • Seritage Growth Properties
  • 500 Fifth Avenue
  • Suite 1530
  • New York
  • New York
  • 10110
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.