Seaport Entertainment Group Inc. (NYSE: SEG)

Sector: Real Estate Industry: Real Estate Services CIK: 0002009684
Market Cap 852.20 Mn
P/B 1.75
P/E -7.01
P/S 6.89
ROIC (Qtr) -15.68
Div Yield % 0.00
Rev 1y % (Qtr) 14.25
Total Debt (Qtr) 156.91 Mn
Debt/Equity (Qtr) 0.32
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About

Investment thesis

Bull case

  • Strong tangible asset base of 699.07M provides 4.46x coverage of total debt 156.91M, indicating robust asset backing and low credit risk.
  • Free cash flow of (67.30M) provides exceptional 17.69x coverage of interest expense (3.81M), showing strong debt service ability.
  • Strong free cash flow of (67.30M) provides 11.72x coverage of acquisition spending (5.74M), indicating disciplined M&A strategy.
  • Cash position of 116.80M fully covers payables of 46.43M by 2.52x, showing strong vendor relationship management.
  • Tangible assets of 699.07M provide robust 70.93x coverage of receivables 9.86M, showing strong asset quality.

Bear case

  • Operating cash flow of (31.29M) barely covers its investment activities of (41.75M), with a coverage ratio of 0.75, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 116.80M provide limited coverage of acquisition spending of (5.74M), which is -20.34x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (31.29M) shows concerning coverage of stock compensation expenses of 16.40M, with a -1.91 ratio indicating potential earnings quality issues.
  • Free cash flow of (67.30M) provides weak coverage of capital expenditures of 36.01M, with a -1.87 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (123.91M) show weak coverage of depreciation charges of 35.29M, with a -3.51 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Real Estate Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CBRE Cbre Group, Inc. 42.12 Bn 36.40 1.04 9.99 Bn
2 BEKE KE Holdings Inc. 19.37 Bn 39.77 1.33 2.96 Bn
3 CSGP Costar Group, Inc. 18.57 Bn 914.80 6.08 1.18 Bn
4 JLL Jones Lang Lasalle Inc 13.60 Bn 21.53 0.54 3.48 Bn
5 FSV FirstService Corp 7.02 Bn 48.37 1.28 1.38 Bn
6 CIGI Colliers International Group Inc. 5.59 Bn 54.27 1.01 2.29 Bn
7 COMP Compass, Inc. 5.18 Bn -91.82 0.78 0.48 Bn
8 OPEN Opendoor Technologies Inc. 3.12 Bn -9.84 0.66 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.26 1.18
EV to Cash from Ops. EV/CFO -28.23 -6.57
EV to Debt EV to Debt 5.63 5.19
EV to EBIT EV/EBIT -7.13 4.86
EV to EBITDA EV/EBITDA -12.99 13.56
EV to Free Cash Flow [EV/FCF] EV/FCF -13.12 -11.14
EV to Market Cap EV to Market Cap 1.04 7.70
EV to Revenue EV/Rev 7.14 3.49
Price to Book Value [P/B] P/B 1.75 1.76
Price to Earnings [P/E] P/E -7.01 40.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -86.79 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -7.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.46
Interest Coverage Int. cover (Qtr) 32.56 -2.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 54.36 -12,527.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 320.63 24.62
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.26
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 9.75 10.86
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.24 33.08
EBIT Growth (1y) % EBIT 1y % (Qtr) 11.07 19.37
EBT Growth (1y) % EBT 1y % (Qtr) 19.69 28.48
EPS Growth (1y) % EPS 1y % (Qtr) 89.19 29.29
FCF Growth (1y) % FCF 1y % (Qtr) 54.99 67.74
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -88.53 33.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.18 1.44
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.01
Cash Ratio Cash Ratio 0.00 1.45
Current Ratio Current Ratio 0.00 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.32 -0.07
Interest Cover Ratio Int Coverage (Qtr) 32.56 -2.20
Times Interest Earned Times Interest Earned (Qtr) 32.56 -2.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -71.60 -120.34
EBIT Margin % EBIT Margin % (Qtr) -100.12 -135.17
EBT Margin % EBT Margin % (Qtr) -97.04 -142.98
Gross Margin % Gross Margin % (Qtr) -18.10 32.99
Net Profit Margin % Net Margin % (Qtr) -98.20 -138.31