Simon Property logged a 2.2% change during today's afternoon session, and is now trading at a price of $156.85 per share.
Simon Property returned gains of 23.3% last year, with its stock price reaching a high of $158.19 and a low of $102.11. Over the same period, the stock outperformed the S&P 500 index by 2.5%. More recently, the company's 50-day average price was $149.23. 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 5.0% dividend yield over the last 12 months.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5,645 | $5,755 | $4,608 | $5,117 | $5,291 | $5,659 |
| Operating Margins | 52% | 51% | 43% | 47% | 49% | 50% |
| Net Margins | 50% | 42% | 28% | 50% | 46% | 46% |
| Net Income (M) | $2,822 | $2,423 | $1,277 | $2,569 | $2,452 | $2,617 |
| Net Interest Expense (M) | $816 | $789 | $784 | $796 | $761 | $855 |
| Depreciation & Amort. (M) | $1,282 | $1,341 | $1,318 | $1,263 | $1,227 | $1,262 |
| Diluted Shares (M) | 320 | 308 | 317 | 329 | 327 | 326 |
| Earnings Per Share | $8.81 | $7.87 | $4.03 | $6.84 | $6.52 | $6.98 |
| EPS Growth | n/a | -10.67% | -48.79% | 69.73% | -4.68% | 7.06% |
| Avg. Price | $127.56 | $129.63 | $67.49 | $114.09 | $117.21 | $156.71 |
| P/E Ratio | 16.21 | 19.04 | 18.8 | 16.68 | 17.98 | 22.45 |
| Free Cash Flow (M) | $2,969 | $2,932 | $1,843 | $3,109 | $3,117 | $3,138 |
| CAPEX (M) | $782 | $876 | $484 | $528 | $650 | $793 |
| EV / EBITDA | 15.12 | 14.94 | 14.11 | 16.94 | 16.49 | 18.7 |
| Total Debt (M) | $23,306 | $24,163 | $26,723 | $25,321 | $24,960 | $26,033 |
| Net Debt / EBITDA | 5.42 | 5.52 | 7.82 | 6.74 | 6.39 | 6.11 |
a Very Low P/E Ratio but Priced at a Premium:
Simon Property has a trailing twelve month P/E ratio of 19.0, compared to an average of 30.37 for the Real Estate sector. Based on its EPS guidance of $6.72, the company has a forward P/E ratio of 22.2. The -3.8% compound average growth rate of Simon Property's historical and projected earnings per share yields a PEG ratio of -5.0. This indicates that its shares are overvalued.Furthermore, Simon Property is likely overvalued compared to the book value of its equity, since its P/B ratio of 16.68 is higher than the sector average of 2.09. The company's shares are currently trading 311.0% below their Graham number. Ultimately, Simon Property's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Simon Property Has an Average Rating of Buy:
The 15 analysts following Simon Property have set target prices ranging from $145.0 to $190.0 per share, for an average of $159.6 with a buy rating. The company is trading -1.7% 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 2.5% of the company's shares are sold short. Institutions own 91.0% of the company's shares, and the insider ownership rate stands at 0.94%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 14% stake in the company is worth $7,274,773,238.
