NYSE:SRG

Stock Analysis Report

Seritage Growth Properties

Executive Summary

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 194 wholly-owned properties and 27 joint venture properties totaling approximately 35.1 million square feet of space across 45 states and Puerto Rico.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.

Share Price & News

How has Seritage Growth Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

SRG

1.5%

US REITs

0.4%

US Market


1 Year Return

7.4%

SRG

19.9%

US REITs

6.9%

US Market

Return vs Industry: SRG underperformed the US REITs industry which returned 19.9% over the past year.

Return vs Market: SRG matched the US Market which returned 6.9% over the past year.


Shareholder returns

SRGIndustryMarket
7 Day0.7%1.5%0.4%
30 Day2.3%1.6%-1.1%
90 Day10.0%7.8%-0.5%
1 Year8.8%7.4%25.2%19.9%9.3%6.9%
3 Year-0.4%-6.3%36.0%18.6%45.8%36.4%
5 Yearn/a64.7%30.0%62.9%45.1%

Price Volatility Vs. Market

How volatile is Seritage Growth Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Seritage Growth Properties undervalued compared to its fair value and its price relative to the market?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SRG ($43.79) is trading below our estimate of fair value ($57.72)

Significantly Undervalued: SRG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SRG is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: SRG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SRG is overvalued based on its PB Ratio (2.1x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SRG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SRG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if SRG's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if SRG's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SRG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-24.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SRG is unprofitable, and losses have increased over the past 5 years at a rate of -24.6% 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 REITs industry (17.6%).


Return on Equity

High ROE: SRG has a negative Return on Equity (-14.35%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SRG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SRG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Seritage Growth Properties'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: SRG has a high level of physical assets or inventory.

Debt Coverage by Assets: SRG's debt is not covered by short term assets (assets are 0.2x debt).


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: Whilst unprofitable SRG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SRG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -51.1% per year.


Financial Institutions Analysis

Asset Level: SRG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SRG has a sufficient allowance for bad loans.

Low Risk Liabilities: SRG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SRG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SRG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SRG has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SRG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Seritage Growth Properties's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Ben Schall (44yo)

0yrs

Tenure

US$8,872,766

Compensation

Mr. Benjamin W. Schall, also known as Ben, serves as the Chief Executive Officer, President of Seritage Growth Properties since 2015 and serves as its Trustee since July 6, 2015. Previously, Mr. Schall ser ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Ben's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Ben's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.3yrs

Average Tenure

43.5yo

Average Age

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


Board Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

Experienced Board: SRG's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$1,516,70414 Aug 19
Edward Lampert
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares38,652
Max PriceUS$39.24
SellUS$1,516,70414 Aug 19
ESL Investments, Inc.
EntityCompany
Shares38,652
Max PriceUS$39.24
SellUS$126,34412 Dec 18
James Bry
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Development & Construction
Shares3,318
Max PriceUS$38.08

Ownership Breakdown


Management Team

  • Ken Lombard (64yo)

    Executive VP & COO

    • Tenure: 1.4yrs
    • Compensation: US$1.28m
  • Chris Mrozinski

    Senior Vice President

    • Tenure: 0yrs
  • Matthew Fernand (42yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$1.62m
  • Ben Schall (44yo)

    President

    • Tenure: 0yrs
    • Compensation: US$8.87m
  • Brian Dickman (43yo)

    Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$1.79m
  • James Bry (51yo)

    Executive Vice President of Development & Construction

    • Tenure: 4.3yrs
    • Compensation: US$1.17m
  • Mary Rottler (42yo)

    Executive Vice President of Leasing & Operations

    • Tenure: 4.3yrs
    • Compensation: US$1.20m
  • Andrew Galvin

    Senior Vice President of Investments & Portfolio Management

    • Tenure: 0.8yrs
  • Maurice Funes

    Senior Vice President of Leasing & Development

    • Tenure: 0yrs
  • Paul D’Arelli

    Senior Vice President of Development

    • Tenure: 0yrs

Board Members

  • Tom Steinberg (62yo)

    Independent Trustee

    • Tenure: 4.3yrs
    • Compensation: US$100.00k
  • Edward Lampert (57yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$100.00k
  • Allison Thrush (55yo)

    Independent Trustee

    • Tenure: 0.5yrs
  • John McClain (58yo)

    Independent Trustee

    • Tenure: 4.3yrs
    • Compensation: US$115.00k
  • Sharon Osberg (69yo)

    Independent Trustee

    • Tenure: 1.4yrs
    • Compensation: US$60.17k
  • Ben Schall (44yo)

    President

    • Tenure: 0yrs
    • Compensation: US$8.87m
  • David Fawer (50yo)

    Independent Trustee

    • Tenure: 4.3yrs
    • Compensation: US$100.00k

Company Information

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


Key Information

  • Name: Seritage Growth Properties
  • Ticker: SRG
  • Exchange: NYSE
  • Founded: 2015
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$2.444b
  • Market Cap: US$1.613b
  • Shares outstanding: 55.80m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRGNYSE (New York Stock Exchange)YesClass A Common SharesUSUSDJul 2015
SRG.PRANYSE (New York Stock Exchange)7% CUM PFD SR AUSUSDDec 2017

Biography

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 194 wholly-owned properties and 27 joint venture properties totaling approximately 35.1 million square feet of  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:42
End of Day Share Price2019/10/18 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.