NYSE:TCO

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

Acceptable track record 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

Stable Share Price: TCO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

TCO

-1.5%

US REITs

0.5%

US Market


1 Year Return

-6.0%

TCO

-10.2%

US REITs

18.7%

US Market

Return vs Industry: TCO exceeded the US REITs industry which returned -7.9% over the past year.

Return vs Market: TCO underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

TCOIndustryMarket
7 Day-0.4%-1.5%0.5%
30 Day-1.0%3.3%4.9%
90 Day-0.8%18.0%19.8%
1 Year-0.9%-6.0%-6.5%-10.2%21.2%18.7%
3 Year-15.0%-26.8%15.9%2.2%46.2%36.8%
5 Year-33.6%-46.6%43.7%14.8%85.3%65.1%

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?

13.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TCO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TCO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TCO is good value based on its PE Ratio (13.9x) compared to the US REITs industry average (36.3x).

PE vs Market: TCO is good value based on its PE Ratio (13.9x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: TCO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 4 analysts?

-106.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCO's earnings are forecast to decline over the next 3 years (-106.6% per year).

Earnings vs Market: TCO's earnings are forecast to decline over the next 3 years (-106.6% per year).

High Growth Earnings: TCO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TCO's revenue is expected to decline over the next 3 years (-0.01% per year).

High Growth Revenue: TCO's revenue is forecast to decline over the next 3 years (-0.01% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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?

-20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCO has a large one-off gain of $261.4M impacting its June 30 2020 financial results.

Growing Profit Margin: TCO's current net profit margins (27.3%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: TCO's earnings have declined by 20.3% per year over the past 5 years.

Accelerating Growth: TCO's earnings growth over the past year (254.3%) exceeds its 5-year average (-20.3% per year).

Earnings vs Industry: TCO earnings growth over the past year (254.3%) exceeded the REITs industry 1.6%.


Return on Equity

High ROE: TCO'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 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: TCO 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 has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: TCO's debt is not well covered by operating cash flow (3.3%).

Interest Coverage: TCO's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.44%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate TCO'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 TCO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TCO's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Bobby Taubman (66 yo)

30.58yrs

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 ($USD1.36M) is below average for companies of similar size in the US market ($USD5.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Taubman
Chairman30.58yrsUS$1.36m2.13%
$ 71.9m
Simon Leopold
Executive VP4.58yrsUS$2.61m0.036%
$ 1.2m
William Taubman
Chief Operating Officer15.17yrsUS$900.02k0.40%
$ 13.5m
Paul A. Wright
President of Taubman Asia Management Limited0.58yrUS$2.33m0.023%
$ 787.5k
Ryan Hurren
Director of Investor Relations & Interim CAO1.75yrsno datano data
Michael Osment
Chief Technology Officer & Senior VP of Information Technology6.58yrsno 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 Officer9.58yrsno datano data
René Tremblay
Interim Head of U.S. Development and Chairman of Taubman Asia Management Limited3.58yrsUS$2.25mno data
Jong Chow
Chief Strategy Officer & Senior VP of Strategy & Research11.58yrsno datano data

6.6yrs

Average Tenure

61yo

Average Age

Experienced Management: TCO's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Taubman
Chairman30.58yrsUS$1.36m2.13%
$ 71.9m
René Tremblay
Interim Head of U.S. Development and Chairman of Taubman Asia Management Limited3.58yrsUS$2.25mno data
Myron Ullman
Lead Independent Director3.67yrsUS$237.00k0.024%
$ 821.9k
Ronald Tysoe
Independent Director12.67yrsUS$233.00kno data
Michelle Goldberg
Independent Director1.25yrsUS$103.50kno data
Michael Embler
Independent Director2.58yrsUS$212.63k0.0081%
$ 273.4k
Mayree Clark
Independent Director2.58yrsUS$221.63k0.021%
$ 718.3k
Janice Fields
Independent Director1.58yrsUS$201.00kno data
Nancy Killefer
Independent Director1.58yrsUS$207.00k0.0027%
$ 92.2k
Cia Buckley Marakovits
Independent Director3.67yrsUS$205.50k0.0065%
$ 218.7k

3.1yrs

Average Tenure

65yo

Average Age

Experienced Board: TCO's board of directors are considered experienced (3.1 years average tenure).


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

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$3.375b
  • Market Cap: US$2.360b
  • Shares outstanding: 87.81m
  • 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 Analysis2020/08/14 00:51
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.