NYSE:TCO.PRJ

Stock Analysis Report

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Executive Summary

Taubman Centers is an S&P MidCap 400 Real Estate Investment Trust engaged in the ownership, management and/or leasing of 26 regional, super-regional and outlet shopping centers in the U.S.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Taubman Centers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCO.PRJ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.9%

TCO.PRJ

6.3%

US REITs

2.5%

US Market


1 Year Return

-15.2%

TCO.PRJ

-9.7%

US REITs

8.4%

US Market

Return vs Industry: TCO.PRJ underperformed the US REITs industry which returned -9.7% over the past year.

Return vs Market: TCO.PRJ underperformed the US Market which returned 8.4% over the past year.


Shareholder returns

TCO.PRJIndustryMarket
7 Day0.9%6.3%2.5%
30 Day-2.9%0.6%5.1%
90 Day-13.1%-11.2%2.0%
1 Year-9.4%-15.2%-5.9%-9.7%10.9%8.4%
3 Year5.0%-13.7%10.7%-3.0%30.5%21.9%
5 Year17.5%-14.9%39.6%10.8%56.9%39.2%

Price Volatility Vs. Market

How volatile is Taubman Centers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Taubman Centers undervalued compared to its fair value and its price relative to the market?

27.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCO.PRJ ($21.94) is trading below our estimate of fair value ($30.12)

Significantly Below Fair Value: TCO.PRJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TCO.PRJ is good value based on its PE Ratio (11.9x) compared to the REITs industry average (27.9x).

PE vs Market: TCO.PRJ is good value based on its PE Ratio (11.9x) compared to the US market (16x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TCO.PRJ has negative assets, so we can't compare its PB Ratio to the US REITs industry average.


Next Steps

Future Growth

How is Taubman Centers forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

3.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TCO.PRJ's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if TCO.PRJ's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TCO.PRJ's revenue (3.8% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: TCO.PRJ's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Taubman Centers performed over the past 5 years?

-31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCO.PRJ has a large one-off gain of $266.7M impacting its March 31 2020 financial results.

Growing Profit Margin: TCO.PRJ's current net profit margins (31.6%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: TCO.PRJ's earnings have declined by -31.1% per year over the past 5 years.

Accelerating Growth: TCO.PRJ's earnings growth over the past year (283.9%) exceeds its 5-year average (-31.1% per year).

Earnings vs Industry: TCO.PRJ earnings growth over the past year (283.9%) exceeded the REITs industry 5.3%.


Return on Equity

High ROE: TCO.PRJ's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Taubman Centers's financial position?


Financial Position Analysis

Short Term Liabilities: TCO.PRJ has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: TCO.PRJ has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: TCO.PRJ has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: TCO.PRJ's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: TCO.PRJ's debt is not well covered by operating cash flow (6.3%).

Interest Coverage: TCO.PRJ's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Taubman Centers's current dividend yield, its reliability and sustainability?

6.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCO.PRJ's dividend (6.66%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: TCO.PRJ's dividend (6.66%) is in the top 25% of dividend payers in the US market (4.45%)


Stability and Growth of Payments

Stable Dividend: TCO.PRJ's dividends per share have been stable in the past 10 years.

Growing Dividend: TCO.PRJ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.3%), TCO.PRJ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCO.PRJ's dividends in 3 years are not forecast to be well covered by earnings (445.4% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Bobby Taubman (65yo)

30.33yrs

Tenure

US$1,357,347

Compensation

Mr. Robert S. Taubman, also known as Bobby, has been the Chief Executive Officer and President at Taubman Centers, Inc. since September 1990 and served as its Chairman of the Board since December 2001 unti ...


CEO Compensation Analysis

Compensation vs Market: Bobby's total compensation ($USD1.36M) is below average for companies of similar size in the US market ($USD5.90M).

Compensation vs Earnings: Bobby's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Taubman
Chairman30.33yrsUS$1.36m2.13% $76.8m
Simon Leopold
Executive VP4.33yrsUS$2.61m0.036% $1.3m
William Taubman
Chief Operating Officer14.92yrsUS$900.02k0.40% $14.4m
Paul A. Wright
President of Taubman Asia Management Limited0.33yrUS$2.33m0.023% $840.7k
Ryan Hurren
Director of Investor Relations & Interim CAO1.5yrsno datano data
Michael Osment
Chief Technology Officer & Senior VP of Information Technology6.33yrsno datano data
Chris Heaphy
Executive VP of Legalno datano datano data
Maria Mainville
Director of Strategic Communicationsno datano datano data
Glenda Cole
Vice President of Marketing & Sponsorshipno datano datano data
Holly Kinnear
Senior VP of Human Resources & Chief Human Resources Officer9.33yrsno datano data

6.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: TCO.PRJ's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Taubman
Chairman30.33yrsUS$1.36m2.13% $76.8m
René Tremblay
Interim Head of U.S. Development and Chairman of Taubman Asia Management Limited3.33yrsUS$2.25mno data
Myron Ullman
Lead Independent Director3.42yrsUS$237.00k0.024% $877.4k
Ronald Tysoe
Independent Director12.42yrsUS$233.00kno data
Michelle Goldberg
Independent Director1yrUS$103.50kno data
Michael Embler
Independent Director2.33yrsUS$212.63k0.0081% $292.1k
Mayree Clark
Independent Director2.33yrsUS$221.63k0.016% $565.9k
Janice Fields
Independent Director1.33yrsUS$201.00kno data
Nancy Killefer
Independent Director1.33yrsUS$207.00k0.0027% $98.2k
Cia Buckley Marakovits
Independent Director3.42yrsUS$205.50k0.0065% $233.5k

2.8yrs

Average Tenure

64yo

Average Age

Experienced Board: TCO.PRJ's board of directors are not considered experienced ( 2.8 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 been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Taubman Centers, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Taubman Centers, Inc.
  • Ticker: TCO.PRJ
  • Exchange: NYSE
  • Founded: 1950
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$3.598b
  • Market Cap: US$2.496b
  • Shares outstanding: 87.94m
  • Website: https://www.taubman.com

Number of Employees


Location

  • Taubman Centers, Inc.
  • 200 East Long Lake Road
  • Suite 300
  • Bloomfield Hills
  • Michigan
  • 48304
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCONYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1992
TU8DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1992
0LDDLSE (London Stock Exchange)YesCommon StockGBUSDNov 1992
TCO.PRJNYSE (New York Stock Exchange)PFD-JUSUSDAug 2012
TCO.PRKNYSE (New York Stock Exchange)PFD SER KUSUSDMar 2013

Biography

Taubman Centers is an S&P MidCap 400 Real Estate Investment Trust engaged in the ownership, management and/or leasing of 26 regional, super-regional and outlet shopping centers in the U.S. and Asia. Taubman’s U.S.-owned properties are the most productive in the publicly held U.S. regional mall industry. Founded in 1950, Taubman is headquartered in Bloomfield Hills, Mich. Taubman Asia, founded in 2005, is headquartered in Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 03:42
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.