Simon Property Group Inc. (NYSE: SPG)

Sector: Real Estate Industry: REIT - Retail CIK: 0001063761
Market Cap 62.65 Bn
P/B 18.52
P/E 27.30
P/S 11.19
ROIC (Qtr) 10.68
Div Yield % 4.93
Rev 1y % (Qtr) 8.16
Total Debt (Qtr) 26.32 Bn
Debt/Equity (Qtr) 11.20
Add ratio to table...

About

Investment thesis

Bull case

  • Robust free cash flow of 3.18B exceeds capital expenditure of 842.12M by 3.77x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 4.02B provides 8.79x coverage of SG&A expenses 456.97M, showing efficient operational cost management.
  • Operating cash flow of 4.02B provides strong 2.73x coverage of operating expenses 1.47B, showing operational efficiency.
  • Strong free cash flow of 3.18B provides 6.95x coverage of SG&A expenses 456.97M, indicating efficient cost management.
  • Operating cash flow of 4.02B provides strong 4.77x coverage of capital expenditure 842.12M, enabling organic growth.

Bear case

  • Operating cash flow of 4.02B barely covers its investment activities of (1.23B), with a coverage ratio of -3.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 4.02B provides thin coverage of dividend payments of (3.19B) with a -1.26 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 1.55B provide limited coverage of acquisition spending of (663.51M), which is -2.34x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 3.18B represents just -16.98x of debt issuance (187.09M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 3.19B show weak coverage of depreciation charges of 1.46B, with a 2.19 ratio indicating high capital intensity and potential reinvestment needs.

Legal Entity Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the REIT - Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SPG Simon Property Group Inc. 62.65 Bn 27.30 11.19 26.32 Bn
2 O Realty Income Corp 15.99 Bn 61.56 15.32 28.37 Bn
3 KIM Kimco Realty Corp 14.22 Bn 20.86 8.63 8.35 Bn
4 REG Regency Centers Corp 14.06 Bn 27.37 9.05 4.98 Bn
5 PECO Phillips Edison & Company, Inc. 11.82 Bn 3,838.00 46.61 2.38 Bn
6 FRT Federal Realty Investment Trust 8.00 Bn 23.50 8.55 5.03 Bn
7 EPRT Essential Properties Realty Trust, Inc. 6.41 Bn 25.34 11.42 2.51 Bn
8 ADC Agree Realty Corp 5.53 Bn 44.48 15.36 3.29 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.54 1.13
EV to Cash from Ops. EV/CFO 23.57 22.52
EV to Debt EV to Debt 3.25 2.49
EV to EBIT EV/EBIT 27.14 42.49
EV to EBITDA EV/EBITDA 20.07 19.89
EV to Free Cash Flow [EV/FCF] EV/FCF 30.36 27.13
EV to Market Cap EV to Market Cap 1.36 461,431.31
EV to Revenue EV/Rev 15.26 13.31
Price to Book Value [P/B] P/B 18.52 3.17
Price to Earnings [P/E] P/E 27.30 177.24
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.70 0.69
Dividend Payout Ratio % Div Payout % (Qtr) 123.00 169.12
Dividend per Basic Share Div per Share (Qtr) 8.45 2.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 86.86 -68.66
Interest Coverage Int. cover (Qtr) 3.43 2.52
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -17.61 -12.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -28.46 68.41
Dividend Growth (1y) % Div 1y % (Qtr) 6.96 13.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -4.46 224.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 4.37 0.11
EBIT Growth (1y) % EBIT 1y % (Qtr) -7.65 222.92
EBT Growth (1y) % EBT 1y % (Qtr) -11.41 290.94
EPS Growth (1y) % EPS 1y % (Qtr) -8.64 273.30
FCF Growth (1y) % FCF 1y % (Qtr) 4.14 -81.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.38 6.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.18 0.12
Cash Payout Ratio Cash Payout (Qtr) 0.66 0.14
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 11.20 -2.59
Interest Cover Ratio Int Coverage (Qtr) 3.43 2.52
Times Interest Earned Times Interest Earned (Qtr) 3.43 2.52
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 75.50 78.58
EBIT Margin % EBIT Margin % (Qtr) 51.78 45.34
EBT Margin % EBT Margin % (Qtr) 36.67 25.50
Gross Margin % Gross Margin % (Qtr) 82.00 73.99
Net Profit Margin % Net Margin % (Qtr) 36.40 23.85