Simon Property Group Inc
Exchange: NYSESector: Real EstateIndustry: REIT - Retail
Simon Property Group, Inc. is an equity real estate investment trust. The firm invests in the real estate markets across the globe. It engages in investment, ownership, and management of properties. It primarily invests in regional malls, Premium Outlets, The Mills, and community/lifestyle centers to create its portfolio. Simon Property Group, Inc. was founded in 1960 and is based in Indianapolis, Indiana, with additional offices in Delaware, United States; and New York, New York.
Did you know?
Generated $3.4 in free cash flow for every $1 of capital expenditure in FY25.
Current Price
$202.44
-0.62%GoodMoat Value
$284.99
40.8% undervaluedProfile
Valuation (TTM)
Market Cap$66.09B
P/E14.29
EV$88.60B
P/B12.69
Shares Out326.47M
P/Sales10.38
Revenue$6.36B
EV/EBITDA13.13
Simon Property Group Inc (SPG) Stock Analysis
GoodMoat Analysis
Simon Property Group is a high-quality retail REIT with a potentially durable moat, evidenced by its exceptional profitability metrics and dominant scale. Its current valuation appears favourable, trading at a significant discount to the GoodMoat target price and offering a high free cash flow yield. The combination of strong business fundamentals and an attractive price makes it a compelling candidate for further due diligence.
Read full analysis
Simon Property Group is a Real Estate Investment Trust (REIT) that owns, develops, and manages premier shopping malls, outlets, and lifestyle centers. The business model revolves around collecting rent from high-quality retail tenants, giving it a classic 'toll booth' structure. Applying the GoodMoat framework, the company demonstrates several competitive advantages. Its vast portfolio of Class A properties in prime locations creates a significant scale privilege and high switching costs for tenants, who benefit from the foot traffic and prestige of its malls. This is reflected in outstanding financial quality: an ROE of 88.9% and an operating margin of 49.9% far exceed typical thresholds for a high-return business. The company also shows strong revenue growth of 13.2% YoY and a high profit margin of 72.7%. While the debt-to-equity ratio of 5.6 is elevated, this is common in the REIT sector and is offset by a robust 5.4% free cash flow yield. On valuation, the stock trades at a P/E of 12.8x and a price of $181.57, which is approximately 36% below the GoodMoat target of $284.99. This suggests a margin of safety that falls into the 'Favourable' band (20-40%) per the Decision Framework. The high dividend yield of 5.45% provides additional return support. For a value investor, SPG passes the initial Moat & Quality Gate with its strong returns and scale, and the valuation appears favourable, warranting deeper investigation into its tenant mix, lease durations, and long-term retail trends. Analysis based on data as of 2024-05-15.
Market Cap$66.09B
Current Price$202.44
P/E Ratio14.29
Forward P/E—
PEG Ratio0.04
EPS$14.17
Book Value$15.95
P/B Ratio12.69
SPG Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 1.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 28.4B
Revenue
5.8B
FY19
4.6B
FY20
5.1B
FY21
5.3B
FY22
5.7B
FY23
6.0B
FY24
6.4B
FY25
Net Income
2.1B
FY19
1.1B
FY20
2.2B
FY21
2.1B
FY22
2.3B
FY23
2.4B
FY24
4.6B
FY25
SPG 52-Week Range
$149.37
$207.56
50-Day MA: $194.90200-Day MA: $181.41
Did you know?
Pays a 4.89% dividend yield.
Simon Property Group Inc (SPG) Financial Summary
Simon Property Group Inc (SPG) is a Real Estate company in the REIT - Retail industry, listed on NYSE. The stock currently trades at $202.44 with a market capitalization of $66.09B.
Key valuation metrics include a P/E ratio of 14.29, price-to-book ratio of 12.69, and EPS of $14.17. The company reports a profit margin of 72.7% and return on equity of 88.9%.
SPG Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $66.09B |
| P/E Ratio | 14.29 |
| EPS | $14.17 |
| P/B Ratio | 12.69 |
| P/S Ratio | 10.38 |
| EV/EBITDA | 13.13 |
| Dividend Yield | 4.89% |
| Profit Margin | 72.7% |
| Return on Equity | 88.9% |
| Debt/Equity | 5.60 |
SPG Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $5.76B | $2.10B |
| FY20 | $4.61B | $1.11B |
| FY21 | $5.12B | $2.25B |
| FY22 | $5.29B | $2.14B |
| FY23 | $5.66B | $2.28B |
| FY24 | $5.96B | $2.37B |
| FY25 | $6.36B | $4.63B |
Simon Property Group Inc (SPG) Valuation
Based on GoodMoat's DCF model, Simon Property Group Inc has a fair value estimate of $284.99. At the current price of $202.44, the stock appears 29.0% undervalued relative to our intrinsic value estimate.
SPG Quality Indicators
Simon Property Group Inc maintains a profit margin of 72.7% and an operating margin of 49.9%. Return on equity stands at 88.9%. Debt-to-equity ratio is 5.60.
About Simon Property Group Inc
Simon Property Group, Inc. is an equity real estate investment trust. The firm invests in the real estate markets across the globe. It engages in investment, ownership, and management of properties. It primarily invests in regional malls, Premium Outlets, The Mills, and community/lifestyle centers to create its portfolio. Simon Property Group, Inc. was founded in 1960 and is based in Indianapolis, Indiana, with additional offices in Delaware, United States; and New York, New York.
SPG Free Cash Flow
Simon Property Group Inc generated $3.20B in trailing twelve-month free cash flow, representing an FCF yield of 4.85%. This moderate FCF yield indicates reasonable cash generation.
SPG Shares Outstanding
Simon Property Group Inc has 0.33 billion shares outstanding at a share price of $202.44, giving it a market capitalization of $66.09B.
SPG Recent Insider Trades
Recent insider transactions at Simon Property Group Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| STEWART MARTA R (Director) | BUY | 196 | $36024.80 |
| Smith Daniel C. (Director) | BUY | 355 | $65249.00 |
| SELIG STEFAN M (Director) | BUY | 206 | $37862.80 |