Simon Property Profitability Analysis

SPG Stock  USD 149.05  2.82  1.86%   
Based on the key profitability measurements obtained from Simon Property's financial statements, Simon Property Group may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in July. Profitability indicators assess Simon Property's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1993-03-31
Previous Quarter
2.3 K
Current Value
732.5 M
Quarterly Volatility
208.7 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
The current Price To Sales Ratio is estimated to decrease to 4.72. The current Days Sales Outstanding is estimated to decrease to 65.25. At this time, Simon Property's Income Quality is most likely to increase slightly in the upcoming years. The Simon Property's current Net Income Per E B T is estimated to increase to 1.00, while Operating Income is projected to decrease to roughly 1.7 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.910.8355
Significantly Up
Very volatile
Net Profit Margin0.00.0
Significantly Down
Very volatile
Operating Profit Margin0.320.496
Way Down
Pretty Stable
Pretax Profit Margin0.00.0
Significantly Down
Very volatile
Return On Equity0.00.0
Fairly Down
Pretty Stable
For Simon Property profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Simon Property to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Simon Property Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Simon Property's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Simon Property Group over time as well as its relative position and ranking within its peers.
  
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Is Retail REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Simon Property. If investors know Simon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Simon Property listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.627
Dividend Share
7.6
Earnings Share
7.85
Revenue Per Share
17.61
Quarterly Revenue Growth
0.068
The market value of Simon Property Group is measured differently than its book value, which is the value of Simon that is recorded on the company's balance sheet. Investors also form their own opinion of Simon Property's value that differs from its market value or its book value, called intrinsic value, which is Simon Property's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Simon Property's market value can be influenced by many factors that don't directly affect Simon Property's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Simon Property's value and its price as these two are different measures arrived at by different means. Investors typically determine if Simon Property is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Simon Property's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Simon Property Group Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Simon Property's current stock value. Our valuation model uses many indicators to compare Simon Property value to that of its competitors to determine the firm's financial worth.
Simon Property Group is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in return on asset category among its peers reporting about  0.07  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Simon Property Group is roughly  14.71 . At this time, Simon Property's Return On Equity is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Simon Property by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Simon Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Simon Property

Return On Equity

 = 

Net Income

Total Equity

 = 
0.79
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Simon Property

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0537
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Simon Return On Asset Comparison

Simon Property is currently under evaluation in return on asset category among its peers.

Simon Property Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Simon Property, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Simon Property will eventually generate negative long term returns. The profitability progress is the general direction of Simon Property's change in net profit over the period of time. It can combine multiple indicators of Simon Property, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-172.8 M-181.4 M
Operating Income2.8 B1.7 B
Income Before Tax2.7 B2.8 B
Net Income2.3 B1.1 B
Income Tax Expense81.9 M86 M
Total Other Income Expense Net-2.8 B-2.7 B
Net Income Applicable To Common Shares2.3 B1.2 B
Net Income From Continuing Ops2.6 B2.3 B
Non Operating Income Net Other745.2 M399.5 M
Interest Income48 M45.6 M
Net Interest Income-854.6 M-897.4 M
Change To Netincome-55 M-52.3 M
Income Quality 1.72  2.39 
Net Income Per E B T 0.97  1.00 

Simon Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Simon Property. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Simon Property position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Simon Property's important profitability drivers and their relationship over time.

Simon Property Profitability Trends

Simon Property profitability trend refers to the progression of profit or loss within a business. An upward trend means that Simon Property's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Simon Property's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Simon Property Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Simon Property different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Simon Property in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Simon Property's future profitability.

Use Simon Property in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Simon Property position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Simon Property will appreciate offsetting losses from the drop in the long position's value.

Simon Property Pair Trading

Simon Property Group Pair Trading Analysis

The ability to find closely correlated positions to Simon Property could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Simon Property when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Simon Property - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Simon Property Group to buy it.
The correlation of Simon Property is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Simon Property moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Simon Property Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Simon Property can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Simon Property position

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Tobacco Products
Tobacco Products Theme
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Additional Information and Resources on Investing in Simon Stock

When determining whether Simon Property Group is a strong investment it is important to analyze Simon Property's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Simon Property's future performance. For an informed investment choice regarding Simon Stock, refer to the following important reports:
To fully project Simon Property's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Simon Property Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Simon Property's income statement, its balance sheet, and the statement of cash flows.
Potential Simon Property investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Simon Property investors may work on each financial statement separately, they are all related. The changes in Simon Property's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Simon Property's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.