Scentre Group (SCG) AI Stock Analysis

• Market Cap: $18.99B
• Dividend Yield: 4.79%
• Average Volume (3M): 7.76M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.06
• Revenue Growth: 5.05%
• EPS Growth: 500.30%
• Country: AU
• Employees: 2,860
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Retail
• EPS (TTM): 0.20
• Shares Outstanding: 5,208,664,000
• 10 Day Avg. Volume: 7,908,443
• 30 Day Avg. Volume: 7,760,319
• PEG Ratio: 0.13
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.87
• Price Target Upside: 6.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: ―

Scentre Group has demonstrated strong financial performance with solid revenue growth and improved profitability. The stock's technical analysis suggests a neutral outlook with no significant momentum, while the valuation is balanced with an attractive dividend yield. The absence of EBIT in the latest period and limited cash flow growth are areas of concern, but overall, the company maintains a stable financial position.

Scentre Group Business Overview & Revenue Model

Company Description

Scentre Group (ASX Code: SCG) is the owner and operator of Westfield in Australia and New Zealand with interests in 42 Westfield Living Centres, encompassing approximately 12,000 outlets.

How the Company Makes Money

Scentre Group primarily generates revenue through rental income from its extensive portfolio of retail properties, particularly the Westfield shopping centres. Key revenue streams include leasing retail space to a diverse mix of tenants, including international and local retailers, dining establishments, and entertainment providers. The company also earns income from property management and development services, as well as through strategic partnerships with retailers and experiential service providers that enhance the shopping experience. Additional revenue is derived from ancillary services such as parking facilities and advertising within the shopping centres. The group's success is significantly influenced by the performance of the retail sector, consumer spending trends, and the strategic location of its properties.

Scentre Group Financial Statement Overview

Summary

Scentre Group's financial performance showcases solid revenue growth and improved profitability, particularly in net income. The balance sheet is stable with moderate leverage, while cash flow generation remains steady. However, the absence of EBIT in the latest period and limited cash flow growth are areas to monitor. Overall, the company is financially sound but should focus on enhancing operational efficiency and cash flow growth.

Income Statement

Scentre Group has demonstrated strong revenue growth, with a 5% increase from the previous year. The gross profit margin remains robust at approximately 69.8%, indicating efficient cost management. However, the absence of EBIT for the latest period is concerning, impacting profitability metrics. Despite this, net income has substantially increased, improving the net profit margin to 39.8% compared to the prior year's 7%.

Balance Sheet

The company's debt-to-equity ratio is around 0.92, which is reasonable but suggests moderate leverage. Return on Equity (ROE) is strong at 5.77%, reflecting effective profit generation from equity. The equity ratio stands at 50%, indicating a balanced capital structure. Overall, the balance sheet shows stability but with room for debt reduction.

Cash Flow

Free cash flow growth is marginal at 5.66%, suggesting limited improvement. The operating cash flow to net income ratio is unavailable, which poses a challenge in assessing cash efficiency. However, the company maintains healthy free cash flow relative to net income, indicating good cash generation capabilities. Overall, cash flows are stable but lack significant growth momentum.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.64B	2.51B	2.46B	2.28B	2.16B
	Gross Profit
1.84B	1.76B	1.64B	1.59B	1.58B
	EBIT
1.73B	1.60B	1.55B	1.50B	1.50B
	EBITDA
1.93B	1.60B	1.75B	1.52B	-2.82B
	Net Income Common Stockholders
1.05B	174.90M	300.60M	887.90M	-3.73B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
380.60M	296.40M	679.00M	978.70M	2.60B
	Total Assets
36.35B	35.67B	37.01B	36.64B	38.06B
	Total Debt
16.77B	15.71B	15.87B	15.47B	16.42B
	Net Debt
16.39B	15.41B	15.20B	14.49B	16.04B
	Total Liabilities
18.17B	17.65B	18.29B	17.46B	19.07B
	Stockholders Equity
18.19B	17.84B	18.53B	19.00B	18.83B
Cash Flow		Free Cash Flow
659.40M	624.10M	1.09B	844.40M	645.50M
	Operating Cash Flow
1.04B	1.03B	1.12B	868.20M	666.90M
	Investing Cash Flow
-460.00M	-438.90M	-481.30M	-323.00M	-338.90M
	Financing Cash Flow
-526.20M	-1.01B	-941.30M	-2.16B	2.02B

Scentre Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SCG, the sentiment is Positive. The current price of 3.65 is below the 20-day moving average (MA) of 3.65, above the 50-day MA of 3.49, and above the 200-day MA of 3.48, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SCG.

Scentre Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCG	64 Neutral	$18.99B	18.04	5.94%	4.79%	5.05%	500.30%
Sector *	60 Neutral	$2.76B	10.59	0.51%	8507.90%	5.51%	-19.44%
CNRAF		$7.13B	10.95	7.73%	6.04%	―	―
CTOUF		$5.49B	285.26	1.03%	2.64%	―	―
DEXSF		$4.90B	―	-9.22%	5.83%	―	―
GPTGF		$5.84B	―	-1.94%	5.21%	―	―
CMW	47 Neutral	AU$929.70M	―	-12.54%	8.45%	-52.49%	47.09%

Scentre Group Corporate Events

Scentre Group Announces Director’s Interest Changes

Scentre Group announced a change in the director’s interest notice involving Elliott Rusanow. The changes include the transfer of Scentre Group securities to his family trust and the issuance of performance rights under the company’s Performance Rights Plan. These actions reflect internal adjustments in the management of securities and compensation, potentially impacting the company’s governance and shareholder relations.

The most recent analyst rating on (AU:SCG) stock is a Hold with a A$3.74 price target. To see the full list of analyst forecasts on Scentre Group stock, see the AU:SCG Stock Forecast page.

Scentre Group Reports Growth in Visitation and Sales, Advances Redevelopment Projects

Scentre Group has reported an increase in customer visitation and business partner sales at its Westfield destinations, with a 2.3% rise in visitors and a 2.8% increase in sales for the first quarter of 2025 compared to the previous year. The company is progressing with redevelopment projects, such as the Westfield Bondi and Westfield Sydney expansions, and has completed a significant financial restructuring with the redemption of $1 billion in notes. Additionally, Westfield Warringah has been declared a state significant development, offering potential for substantial residential growth. The company maintains a strong leasing demand with a 99.6% occupancy rate and anticipates continued financial growth for the year.

Scentre Group AGM Results Indicate Strong Shareholder Support

Scentre Group announced the results of its Annual General Meeting held on April 9, 2025. The meeting saw the approval of several resolutions, including the re-election of directors and the adoption of the remuneration report. All resolutions were carried with significant majority votes, indicating strong shareholder support. The results reflect the company’s stable governance and continued confidence from stakeholders in its strategic direction.

Scentre Group Holds Hybrid Annual General Meeting

Scentre Group held its Annual General Meeting on April 9, 2025, in a hybrid format, allowing both in-person and online participation. The meeting was chaired by Ilana Atlas, who acknowledged the traditional custodians of the land. CEO Elliott Rusanow was unable to attend due to a recent surgery but had pre-recorded his address. The meeting included introductions of the board members and executive team, with a focus on addressing questions from securityholders.

Scentre Group Announces Cessation of Performance Rights

Scentre Group announced the cessation of 272,547 performance rights due to the lapse of conditional rights that were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s performance metrics and future incentive plans.

Scentre Group Prices A$650 Million Subordinated Notes

Scentre Group has announced the pricing of A$650 million in subordinated notes in the Australian market, comprising both floating and fixed-to-floating rate notes. The proceeds will be used to redeem existing notes and diversify the company’s debt sources, ultimately reducing the overall weighted average cost of debt and extending the call date profile of its subordinated notes.

Scentre Group Releases 2024 Annual Financial Reports for Trusts

Scentre Group has released its 2024 Annual Financial Reports for its three trusts, which are consolidated into the group’s overall accounts. This release is part of the company’s regulatory obligations and provides insights into its financial performance, impacting stakeholders’ understanding of the group’s economic activities.

Scentre Group Unveils 2024 Responsible Business Report

Scentre Group has released its 2024 Responsible Business Report, which highlights its performance across community, people, environment, and economic pillars. The report includes a new Climate section as the company aligns with Australian Sustainability Reporting Standards, and it also features the 2024 Modern Slavery Statement. This release underscores Scentre Group’s commitment to operating as a responsible and sustainable business, aiming to create long-term value.

Scentre Group Director Increases Stake in Company

Scentre Group has announced a change in the director’s interest, with Craig Douglas Mitchell acquiring an additional 40,000 ordinary stapled securities through an on-market purchase. This change increases his total holdings to 100,000 securities, reflecting a strategic move that may indicate confidence in the company’s future performance.

Scentre Group Director Increases Stake Through Reinvestment Plan

Scentre Group has announced a change in the director’s interest notice for Catherine Michelle Brenner, who has increased her indirect interest in the company by acquiring 2,355 ordinary stapled securities through the Group’s Distribution Reinvestment Plan. This change reflects a minor adjustment in the director’s holdings, indicating continued confidence in the company’s financial strategies and operations.

Scentre Group Director Increases Stake with On-Market Purchase

Scentre Group has announced a change in the director’s interest as Ilana Rachel Atlas acquired an additional 50,000 ordinary stapled securities, bringing her total to 280,856. This on-market purchase reflects a strategic move by the director, potentially signaling confidence in the company’s future performance and stability, which may impact stakeholder perceptions positively.

Scentre Group Announces Quotation of New Securities

Scentre Group has announced the application for quotation of 6,915,807 fully paid ordinary units stapled securities on the Australian Securities Exchange (ASX) as of February 28, 2025. This move is part of a dividend or distribution plan, potentially impacting the company’s financial structure and offering increased liquidity for stakeholders.