Seaport Entertainment Group Inc. (NYSE: SEG)

Sector: Real Estate Industry: Real Estate Services CIK: 0002009684
Market Cap 867.33 Mn
P/B 1.79
P/E -7.14
P/S 7.01
ROIC (Qtr) -15.68
Div Yield % 0.00
Rev 1y % (Qtr) 14.25
Total Debt (Qtr) 156.91 Mn
Debt/Equity (Qtr) 0.32

About

Price action

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.

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. 51.14 Bn 41.65 1.30 9.48 Bn
2 CSGP Costar Group, Inc. 26.47 Bn 1,304.00 8.66 1.18 Bn
3 BEKE KE Holdings Inc. 21.08 Bn 43.29 1.45 2.96 Bn
4 JLL Jones Lang Lasalle Inc 16.90 Bn 26.75 0.67 3.48 Bn
5 FSV FirstService Corp 7.01 Bn 56.92 1.78 1.51 Bn
6 COMP Compass, Inc. 6.69 Bn -118.64 1.01 0.48 Bn
7 CIGI Colliers International Group Inc. 5.39 Bn 69.70 2.00 2.50 Bn
8 OPEN Opendoor Technologies Inc. 4.15 Bn -13.09 0.88 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.29 1.34
EV to Cash from Ops. EV/CFO -28.71 2.97
EV to Debt EV to Debt 5.73 6.15
EV to EBIT EV/EBIT -7.25 5.23
EV to EBITDA EV/EBITDA -13.22 18.71
EV to Free Cash Flow [EV/FCF] EV/FCF -13.35 -9.39
EV to Market Cap EV to Market Cap 1.04 4.27
EV to Revenue EV/Rev 7.26 3.62
Price to Book Value [P/B] P/B 1.79 2.10
Price to Earnings [P/E] P/E -7.14 45.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -86.79 0.38
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -6.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.42
Interest Coverage Int. cover (Qtr) 32.56 -2.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 54.36 -12,525.88
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 320.63 23.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 9.75 4.69
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.24 26.73
EBIT Growth (1y) % EBIT 1y % (Qtr) 11.07 12.80
EBT Growth (1y) % EBT 1y % (Qtr) 19.69 21.27
EPS Growth (1y) % EPS 1y % (Qtr) 89.19 22.42
FCF Growth (1y) % FCF 1y % (Qtr) 54.99 54.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -88.53 39.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.18 1.45
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 -0.06
Interest Cover Ratio Int Coverage (Qtr) 32.56 -2.22
Times Interest Earned Times Interest Earned (Qtr) 32.56 -2.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -71.60 -121.98
EBIT Margin % EBIT Margin % (Qtr) -100.12 -136.76
EBT Margin % EBT Margin % (Qtr) -97.04 -144.54
Gross Margin % Gross Margin % (Qtr) -18.10 32.87
Net Profit Margin % Net Margin % (Qtr) -98.20 -139.89