| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 0/6 |
| Past Performance | 0/6 |
| Financial Health | 1/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$8.32 |
| 52 Week High | US$20.09 |
| 52 Week Low | US$7.98 |
| Beta | 2.12 |
| 1 Month Change | -30.32% |
| 3 Month Change | -7.56% |
| 1 Year Change | -47.94% |
| 3 Year Change | -81.79% |
| 5 Year Change | -79.04% |
| Change since IPO | -77.57% |
Recent News & Updates
Seritage: Special Situation Opportunity Happening Now With 'Near Term' Shareholder Value Creation To Follow
Seritage was a $40 stock pre-COVID with a price predicated on years of hard work that would be needed to reposition and re-develop assets to achieve that valuation. The largest shareholder (Eddie Lampert) initiated an SEC filing in November 2021, when shares ranged from $14.50 to $17, calling the shares "undervalued" as part of the filing. The bullish argument for Seritage has centered on the vast amount of asset value that can be unlocked over time. Most do not dispute the significant value of the assets. The bearish argument has always been that it will take too much time, and too much money, to unlock the value of the underlying assets owned by Seritage. In March of 2022, Seritage announced a strategic review that could involve selling the company, or selling certain assets, with the stated goal of the following: "We are committed to exploring a variety of opportunities to pull forward this value and deliver it to Seritage shareholders in the near-term". I believe we are about to witness fireworks and I also believe that investors who think value creation leads to a share price of only 50% above current levels (levels which the largest shareholder has called "undervalued") are in for a surprise. With over 20% of the stock still sold short, be prepared for massive upside as the plan to unlock value unfolds.
Seritage: Well Priced For 0% Returns
We have had multiple bearish calls on Seritage. The stock has heavily underperformed the REIT indices while the C-suite has become a revolving door. We are upgrading it to neutral and tell you why.
Shareholder Returns
| SRG | US REITs | US Market | |
|---|---|---|---|
| 7D | -14.8% | -3.2% | -2.5% |
| 1Y | -47.9% | 0.7% | -10.4% |
Return vs Industry: SRG underperformed the US REITs industry which returned 0.7% over the past year.
Return vs Market: SRG underperformed the US Market which returned -10.4% over the past year.
Price Volatility
| SRG volatility | |
|---|---|
| SRG Average Weekly Movement | 8.3% |
| REITs Industry Average Movement | 4.3% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 2.8% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2015 | 40 | Andrea Olshan | https://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
| SRG fundamental statistics | |
|---|---|
| Market Cap | US$466.19m |
| Earnings (TTM) | -US$77.53m |
| Revenue (TTM) | US$105.77m |
4.4x
P/S Ratio-6.0x
P/E RatioIs SRG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SRG income statement (TTM) | |
|---|---|
| Revenue | US$105.77m |
| Cost of Revenue | US$78.65m |
| Gross Profit | US$27.12m |
| Other Expenses | US$104.65m |
| Earnings | -US$77.53m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -1.38 |
| Gross Margin | 25.64% |
| Net Profit Margin | -73.31% |
| Debt/Equity Ratio | 185.2% |
How did SRG perform over the long term?
See historical performance and comparisonValuation
Is Seritage Growth Properties undervalued compared to its fair value and its price relative to the market?
Valuation Score
1/6Valuation Score 1/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
0.73x
Price to Book (PB) ratio
Share Price vs. Fair Value
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 Ratio
PE vs Industry: SRG is unprofitable, so we can't compare its PE Ratio to the US 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
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 good value based on its PB Ratio (0.7x) compared to the US REITs industry average (1.7x).
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
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
9.5%
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.
Past Performance
How has Seritage Growth Properties performed over the past 5 years?
Past Performance Score
0/6Past 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 REITs industry (69.5%).
Return on Equity
High ROE: SRG has a negative Return on Equity (-12.23%), as it is currently unprofitable.
Financial Health
How is Seritage Growth Properties's financial position?
Financial Health Score
1/6Financial 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
Dividend
What is Seritage Growth Properties's current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend 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.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Andrea Olshan (41 yo)
1.17yrs
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 ($USD2.65M).
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 ( 1.1 years average tenure), which suggests a new team.
Board Members
Experienced Board: SRG's board of directors are not considered experienced ( 0.7 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: Retail REITs
- Sector: Real Estate
- Implied Market Cap: US$466.189m
- Market Cap: US$363.396m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.