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SRG

Seritage Growth Properties NYSE:SRG Stock Report

Last Price

US$8.11

Market Cap

US$466.2m

7D

-15.3%

1Y

-49.4%

Updated

16 May, 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$8.11
52 Week HighUS$20.09
52 Week LowUS$7.98
Beta2.12
1 Month Change-32.08%
3 Month Change-12.70%
1 Year Change-49.41%
3 Year Change-81.81%
5 Year Change-79.61%
Change since IPO-78.14%

Recent News & Updates

Apr 22

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.

Jan 21

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

SRGUS REITsUS Market
7D-15.3%-3.2%-2.5%
1Y-49.4%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

Is SRG's price volatile compared to industry and market?
SRG volatility
SRG Average Weekly Movement8.4%
REITs Industry Average Movement4.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

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

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$466.19m
Earnings (TTM)-US$77.53m
Revenue (TTM)US$105.77m

4.3x

P/S Ratio

-5.9x

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)-1.38
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

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


0.72x

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

0/6

Future 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

0/6

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 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

1/6

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


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.


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$354.224m
  • 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 Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 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.