Now trading at a price of $107.4, Simon Property has moved -0.9% so far today.
Simon Property returned gains of 16.0% last year, with its stock price reaching a high of $133.08 and a low of $90.77. Over the same period, the stock underperformed the S&P 500 index by -4.0%. As of April 2023, the company's 50-day average price was $113.07. 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 17.2, 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 17.8. 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 19.35, 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 12.42 is higher than the sector average of 2.24. The company's shares are currently trading 160.4% 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 $130.13 with a buy rating. As of April 2023, the company is trading -13.1% 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 $4,967,568,833.
