Stockland (SGP) AI Stock Analysis

• Market Cap: $13.28B
• Dividend Yield: 4.59%
• Average Volume (3M): 5.55M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.13
• Revenue Growth: 18.41%
• EPS Growth: 86.24%
• Country: AU
• Employees: 1,600
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Diversified
• EPS (TTM): 0.19
• Shares Outstanding: 2,399,818,000
• 10 Day Avg. Volume: 4,381,441
• 30 Day Avg. Volume: 5,547,693
• PEG Ratio: 0.64
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.13
• 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: $5.77
• Price Target Upside: 4.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: ―

Stockland exhibits strong operational efficiency and a solid balance sheet, but faces challenges in profitability and cash flow, impacting its financial performance score. The technical analysis indicates a bearish trend, and the valuation suggests moderate overvaluation, though the dividend yield remains attractive. These factors contribute to a balanced overall stock score.

Stockland Business Overview & Revenue Model

Company Description

Stockland (ASX:SGP) was founded in 1952 and has grown to become one of Australia's largest diversified property groups owning, developing and managing a large portfolio of shopping centres, residential communities, workplace and logistic assets and retirement living villages. Stockland is consistently rated as one of the most sustainable real estate companies in the world by the Dow Jones Sustainability World Index (DJSI). Stockland is also an Employer of Choice for Gender Equality, as recognised by the Workplace Gender Equality Agency.

How the Company Makes Money

Stockland makes money through a diversified revenue model that includes income from residential development, commercial property leasing, retail property management, and retirement living services. Key revenue streams include the sale of residential properties and land, rental income from commercial and retail properties, and management fees from retirement living facilities. Additionally, Stockland forms strategic partnerships with other developers and investors to co-develop properties, thereby enhancing its financial capabilities and expanding its portfolio. Factors contributing to its earnings include market demand for residential and commercial properties, strategic location of assets, and effective asset management practices. The company's commitment to sustainability also positions it favorably in the market, attracting eco-conscious tenants and buyers.

Stockland Financial Statement Overview

Summary

Stockland demonstrates stable operational efficiency and a strong balance sheet. However, the company faces challenges in profitability and cash flow generation. While leverage is kept at a moderate level, improving net income and cash flows will be vital for future growth and financial resilience.

Income Statement

The gross profit margin has shown stability over the years, with a recent margin of 39.6% in 2024. The net profit margin decreased to 10.2% from 15.2% in 2023, indicating reduced profitability. Revenue growth was modest at 3.4% from 2023 to 2024. EBIT and EBITDA margins remained healthy at 23.3% and 23.4% respectively, showing operational efficiency despite a decrease from prior years.

Balance Sheet

Stockland maintains a solid equity base with a stable equity ratio of 58%. The debt-to-equity ratio is at a manageable level of 0.48, indicating moderate leverage. Return on equity decreased to 3.1% in 2024, reflecting a dip in profitability. The balance sheet shows strong stability, with room for improvement in returns.

Cash Flow

Free cash flow decreased significantly from 2023 to 2024. The operating cash flow to net income ratio is low at 0.37, suggesting potential challenges in cash generation relative to net income. However, the free cash flow to net income ratio is relatively stronger at 0.36, indicating some cash flow stability.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.04B	2.99B	2.89B	2.85B	2.64B	2.81B
	Gross Profit
650.00M	1.18B	862.00M	1.11B	991.00M	1.21B
	EBIT
650.00M	697.00M	862.00M	738.00M	703.00M	781.00M
	EBITDA
653.50M	701.00M	867.00M	755.00M	723.00M	801.00M
	Net Income Common Stockholders
448.00M	305.00M	440.00M	1.38B	1.10B	-21.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
506.00M	807.00M	306.00M	399.00M	1.29B	458.00M
	Total Assets
17.64B	17.06B	16.64B	20.41B	19.30B	19.16B
	Total Debt
5.58B	4.77B	3.95B	4.51B	4.79B	5.07B
	Net Debt
5.07B	4.05B	3.67B	4.13B	3.63B	4.62B
	Total Liabilities
7.70B	7.17B	6.46B	10.05B	9.72B	10.07B
	Stockholders Equity
9.94B	9.89B	10.18B	10.36B	9.58B	9.08B
Cash Flow		Free Cash Flow
282.00M	110.00M	309.00M	896.00M	1.03B	997.00M
	Operating Cash Flow
289.00M	114.00M	332.00M	918.00M	1.05B	1.12B
	Investing Cash Flow
120.00M	101.00M	763.00M	-976.00M	95.00M	-137.00M
	Financing Cash Flow
-596.00M	233.00M	-1.22B	-705.00M	-423.00M	-676.00M

Stockland Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.54
• 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:SGP, the sentiment is Positive. The current price of 5.54 is below the 20-day moving average (MA) of 5.55, above the 50-day MA of 5.27, and above the 200-day MA of 5.10, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 33.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SGP.

Stockland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.80B	10.80	0.50%	8507.83%	5.68%	-20.85%
SGP	61 Neutral	$13.28B	29.45	4.54%	4.59%	18.41%	86.24%
CNRAF		$7.06B	10.95	7.73%	5.30%	―	―
CTOUF		$5.42B	283.42	1.03%	2.61%	―	―
DEXSF		$4.84B	―	-9.22%	5.87%	―	―
GPTGF		$5.83B	―	-1.94%	5.19%	―	―
STGPF		$12.19B	17.73	5.94%	4.80%	―	―

Stockland Corporate Events

Stockland Announces CFO Transition with New Appointment

Stockland has announced that its Chief Financial Officer, Ms. Alison Harrop, will step down in early August 2025, with Mr. Josh McHutchison set to take over the role. Mr. McHutchison brings over 30 years of experience in the property and finance sectors, having held significant roles at Sydney Airport, Lendlease, and Macquarie Infrastructure. This leadership change is expected to facilitate a smooth transition and potentially strengthen Stockland’s financial management and strategic positioning.

Stockland Announces Cessation of Performance Rights

Stockland has announced the cessation of 22,690 performance rights due to unmet conditions, effective March 31, 2025. This development may impact the company’s capital structure and could have implications for stakeholders, signaling potential adjustments in Stockland’s operational strategies or performance metrics.

Stockland Issues Performance Rights to Boost Employee Incentives

Stockland has announced the issuance of 136,668 performance rights as part of an employee incentive scheme, which are not intended to be quoted on the ASX. This move reflects Stockland’s ongoing efforts to incentivize and retain talent, potentially impacting its operational efficiency and competitive positioning in the real estate market.

Stockland to Lead Major Urban Renewal Project in Waterloo

Stockland, in partnership with Link Wentworth, City West Housing, and Birribee Housing, has finalized agreements for the Waterloo Renewal Project with Homes NSW. This significant urban renewal initiative will create a sustainable mixed tenure community of over 3000 apartments, with half dedicated to social and affordable housing. The project, set to begin in 2027 pending approvals, underscores Stockland’s commitment to developing vibrant, inclusive communities and enhancing its position in the property development sector.

Stockland Director Acquires Significant Securities Stake

Stockland has announced a change in the director’s interest, with Penelope Ann Winn acquiring 40,000 ordinary stapled securities through an on-market trade. This transaction reflects a strategic move by the director, potentially indicating confidence in the company’s future prospects and stability, which could influence stakeholder perceptions and market positioning.