NYSE:TCO

Stock Analysis Report

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

Fundamentals

6 star dividend payer and slightly overvalued.


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


Market Performance


7 Day Return

-3.9%

TCO

-0.2%

US REITs

1.3%

US Market


1 Year Return

-31.3%

TCO

19.9%

US REITs

5.9%

US Market

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

Return vs Market: TCO underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

TCOIndustryMarket
7 Day-3.9%-0.2%1.3%
30 Day-13.4%2.0%-1.9%
90 Day-11.8%4.2%-1.8%
1 Year-27.3%-31.3%25.3%19.9%8.3%5.9%
3 Year-41.2%-48.9%34.1%17.0%45.6%36.2%
5 Year-36.9%-51.6%64.2%29.5%66.1%47.9%

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

Valuation

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

42.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TCO ($36.56) is trading below our estimate of fair value ($63.37)

Significantly Undervalued: TCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TCO is poor value based on its PE Ratio (49.2x) compared to the REITs industry average (35.3x).

PE vs Market: TCO is poor value based on its PE Ratio (49.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: TCO is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: TCO 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 6 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCO's forecast earnings growth (17.9% per year) is above the savings rate (2.7%).

Earnings vs Market: TCO's earnings (17.9% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: TCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: TCO's revenue (4.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TCO's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if TCO'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?

-55.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TCO's earnings have declined by -55.1% per year over the past 5 years.

Accelerating Growth: TCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TCO had negative earnings growth (-22.4%) over the past year, making it difficult to compare to the REITs industry average (17%).


Return on Equity

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


Return on Assets

ROA vs Industry: TCO's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: TCO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Taubman Centers'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: TCO has a high level of physical assets or inventory.

Debt Coverage by Assets: TCO has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

7.39%

Current Dividend Yield


Dividend Yield vs Market

company7.4%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years7.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TCO's dividend (7.39%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: TCO's dividend (7.39%) is in the top 25% of dividend payers in the US market (3.77%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.8%), TCO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCO's dividends in 3 years are forecast to be thoroughly covered by earnings (0.8% payout ratio).


Next Steps

Management

What is the CEO of Taubman Centers's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Bobby Taubman (65yo)

29.8yrs

Tenure

US$1,842,633

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 ($USD1.84M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: TCO's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

64yo

Average Age

Experienced Board: TCO's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$195,55007 Aug 19
Michael Embler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$39.11
BuyUS$155,82008 May 19
Mayree Clark
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$51.94
BuyUS$12,83326 Nov 18
Robert Taubman
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares250
Max PriceUS$51.33
BuyUS$54,69008 Nov 18
Jonathan Litt
EntityIndividual
Shares1,000
Max PriceUS$54.69
BuyUS$54,32006 Nov 18
Jonathan Litt
EntityIndividual
Shares1,000
Max PriceUS$54.32
BuyUS$55,20605 Nov 18
Jonathan Litt
EntityIndividual
Shares1,000
Max PriceUS$55.21

Ownership Breakdown


Management Team

  • Bobby Taubman (65yo)

    Chairman

    • Tenure: 29.8yrs
    • Compensation: US$1.84m
  • Bill Taubman (60yo)

    Chief Operating Officer

    • Tenure: 14.3yrs
    • Compensation: US$1.21m
  • Michael Osment

    Chief Technology Officer & Senior VP of Information Technology

    • Tenure: 5.8yrs
  • Maria Mainville

    Director of Strategic Communications

    • Tenure: 0yrs
  • Simon Leopold (51yo)

    Executive VP

    • Tenure: 3.8yrs
    • Compensation: US$2.59m
  • Chris Heaphy

    Executive VP of Legal

    • Tenure: 0yrs
  • Ryan Hurren

    Director of Investor Relations & Interim CAO

    • Tenure: 0.9yrs
  • Glenda Cole

    Vice President of Marketing & Sponsorship

    • Tenure: 0yrs
  • Paul Wright (48yo)

    Executive VP & Global Head of Leasing

    • Tenure: 2.5yrs
    • Compensation: US$2.21m
  • Peter Sharp (52yo)

    President of Taubman Asia Management Limited

    • Tenure: 2.8yrs
    • Compensation: US$1.59m

Board Members

  • Mike Ullman (72yo)

    Lead Director

    • Tenure: 2.8yrs
    • Compensation: US$240.00k
  • Ron Tysoe (66yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$233.00k
  • Bobby Taubman (65yo)

    Chairman

    • Tenure: 29.8yrs
    • Compensation: US$1.84m
  • Michelle Goldberg (49yo)

    Independent Director

    • Tenure: 0.4yrs
  • Mike Embler (55yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$204.00k
  • René Tremblay (64yo)

    Interim Head of U.S. Development and Chairman of Taubman Asia Management Limited

    • Tenure: 2.8yrs
    • Compensation: US$2.25m
  • Mayree Clark (62yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$199.50k
  • Jan Fields (64yo)

    Independent Director

    • Tenure: 0.8yrs
  • Nancy Killefer (65yo)

    Independent Director

    • Tenure: 0.8yrs
  • Cia Buckley Marakovits (55yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$211.50k

Company Information

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


Key Information

  • Name: Taubman Centers, Inc.
  • Ticker: TCO
  • Exchange: NYSE
  • Founded: 1950
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$3.209b
  • Market Cap: US$2.238b
  • Shares outstanding: 87.64m
  • 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. Taubma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:40
End of Day Share Price2019/10/14 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.