Simon Property Group, Inc.
Simon Property Group, Inc. Fundamental Analysis
Simon Property Group, Inc. (SPG-PJ) shows moderate financial fundamentals with a PE ratio of 13.32, profit margin of 72.51%, and ROE of 1.46%. The company generates $20.2B in annual revenue with moderate year-over-year growth of 5.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SPG-PJ's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSPG-PJ demonstrates superior asset utilization.
Valuation Score
ExcellentSPG-PJ trades at attractive valuation levels.
Growth Score
ModerateSPG-PJ shows steady but slowing expansion.
Financial Health Score
WeakSPG-PJ carries high financial risk with limited liquidity.
Profitability Score
ExcellentSPG-PJ achieves industry-leading margins.
Key Financial Metrics
Is SPG-PJ Expensive or Cheap?
P/E Ratio
SPG-PJ trades at 13.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SPG-PJ's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Simon Property Group, Inc. at 11.81 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.37 times EBITDA. This is generally considered low.
How Well Does SPG-PJ Make Money?
Net Profit Margin
For every $100 in sales, Simon Property Group, Inc. keeps $72.51 as profit after all expenses.
Operating Margin
Core operations generate 49.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.46 in profit for every $100 of shareholder equity.
ROA
Simon Property Group, Inc. generates $11.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Simon Property Group, Inc. generates strong operating cash flow of $13.14B, reflecting robust business health.
Free Cash Flow
Simon Property Group, Inc. generates strong free cash flow of $10.25B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.92 in free cash annually.
FCF Yield
SPG-PJ converts 5.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.46
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How SPG-PJ Stacks Against Its Sector Peers
| Metric | SPG-PJ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.32 | 23.43 | Better (Cheaper) |
| ROE | 146.33% | 685.00% | Weak |
| Net Margin | 72.51% | 2002.00% | Weak |
| Debt/Equity | 5.60 | -21.97 (disorted) | Distorted |
| Current Ratio | 0.19 | 11.11 | Weak Liquidity |
| ROA | 11.37% | 166.00% | Weak |
SPG-PJ outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Simon Property Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.14%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
6.54%
Industry Style: Income, Inflation Hedge, REIT
GrowingFCF CAGR
-5.40%
Industry Style: Income, Inflation Hedge, REIT
Declining