Simon Property logged a 0.4% change during today's afternoon session, and is now trading at a price of $122.17 per share.
Simon Property returned gains of 7.0% last year, with its stock price reaching a high of $133.08 and a low of $100.17. Over the same period, the stock underperformed the S&P 500 index by -9.0%. As of April 2023, the company's 50-day average price was $111.59. 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 6.0% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $5,645 | $5,755 | $4,608 | $5,117 | $5,291 | $5,436 |
| Operating Margins | 52% | 51% | 43% | 47% | 49% | 49% |
| Net Margins | 50% | 42% | 28% | 50% | 46% | 45% |
| Net Income (MM) | $2,822 | $2,423 | $1,277 | $2,569 | $2,452 | $2,471 |
| Net Interest Expense (MM) | $816 | $804 | $784 | $822 | $763 | $806 |
| Depreciation & Amort. (MM) | $1,282 | $1,341 | $1,318 | $1,263 | $1,227 | $1,246 |
| Free Cash Flow (MM) | $2,969 | $2,932 | $1,843 | $3,109 | $3,117 | $3,104 |
| Capital Expenditures (MM) | $782 | $876 | $484 | $528 | $650 | $728 |
| Net Current Assets (MM) | -$23,675 | -$25,538 | -$28,215 | -$28,396 | -$28,312 | -$28,503 |
| Long Term Debt (MM) | $23,306 | $24,163 | $26,723 | $25,321 | $24,960 | $24,990 |
| Net Debt / EBITDA | 5.42 | 5.52 | 7.82 | 6.74 | 6.39 | 6.19 |
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 16.6, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $6.17, the company has a forward P/E ratio of 18.1. Furthermore, Simon Property is likely overvalued compared to the book value of its equity, since its P/B ratio of 13.69 is higher than the sector average of 2.24. The company's shares are currently trading 577.6% above their Graham number.
Analysts Give Simon Property an Average Rating of Buy:
The 15 analysts following Simon Property have set target prices ranging from $110.0 to $160.0 per share, for an average of $129.07 with a buy rating. As of April 2023, the company is trading -13.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Simon Property has a very low short interest because 1.8% 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 $5,633,654,776.
