Thinking of Investing in SPG? What Our Analysts Know.

Now trading at a price of $110.1, Simon Property has moved 1.2% so far today.

Simon Property returned gains of 26.0% last year, with its stock price reaching a high of $133.08 and a low of $88.41. Over the same period, the stock outperformed the S&P 500 index by 4.0%. More recently, the company's 50-day average price was $116.43. Simon is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales. Based in Indianapolis, IN, the large-cap Real Estate company has 2,500 full time employees. Simon Property has offered a 6.6% dividend yield over the last 12 months.

Exceptional Profitability Overshadowed by Excessive Leverage:

2018-02-23 2019-02-22 2020-02-21 2021-02-25 2022-02-24 2023-02-23
Revenue (MM) $5,539 $5,645 $5,755 $4,608 $5,117 $5,291
Operating Margins 51% 52% 51% 43% 47% 49%
Net Margins 35.0% 43.0% 37.0% 24.0% 44.0% 40.0%
Net Income (MM) $1,948 $2,440 $2,102 $1,113 $2,250 $2,140
Net Interest Expense (MM) -$809 -$816 -$789 -$784 -$796 -$761
Depreciation & Amort. (MM) -$1,357 -$1,350 -$1,394 -$1,355 -$1,326 -$1,292
Earnings Per Share $6.24 $7.87 $6.81 $3.59 $6.84 $6.5
EPS Growth n/a 26.12% -13.47% -47.28% 90.53% -4.97%
Diluted Shares (MM) 312 310 308 309 329 329
Free Cash Flow (MM) $4,570 $4,349 $4,677 $2,777 $4,162 $4,357
Capital Expenditures (MM) -$977 -$599 -$869 -$451 -$525 -$590
Net Current Assets (MM) -$25,603 -$25,381 -$26,600 -$28,880 -$27,923 -$27,742
Long Term Debt (MM) $24,632 $23,306 $24,163 $26,723 $25,321 $24,960

A Lower P/E Ratio Than Its Sector Average but Trades Above Its Graham Number:

Simon Property has a trailing twelve month P/E ratio of 17.7, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $6.36, the company has a forward P/E ratio of 18.3. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 0.9%. On this basis, the company's PEG ratio is 19.92, which suggests that it is overpriced. Furthermore, Simon Property is likely overvalued compared to the book value of its equity, since its P/B ratio of 12.73 is higher than the sector average of 2.24. The company's shares are currently trading 166.9% above their Graham number.

Simon Property Has an Analyst Consensus of Some Upside Potential:

The 15 analysts following Simon Property have set target prices ranging from $110.0 to $160.0 per share, for an average of $131.67 with a buy rating. As of April 2023, the company is trading -11.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Simon Property has an average amount of shares sold short because 2.2% of the company's shares are sold short. Institutions own 89.0% of the company's shares, and the insider ownership rate stands at 0.9%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 14% stake in the company is worth $5,092,451,706.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.