SL Green Realty Corp (SLG, Financial), a prominent player in the REITs industry, has seen a significant surge in its stock price over the past three months. With a current market cap of $2.76 billion and a price of $42.87, the company's stock has gained 9.24% over the past week and a whopping 70.16% over the past three months. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value stands at $55.97, slightly higher than the past GF Value of $55.93. This indicates that the stock is modestly undervalued, a shift from the past GF Valuation that suggested it was a possible value trap.
Company Overview
SL Green Realty Corp is one of the largest Manhattan property owners and landlords. The company has interests in around 35 million square feet of wholly owned and joint-venture office space. Additionally, it has a limited portfolio of well-located retail space. As a real estate investment trust, SL Green Realty Corp has carved a niche for itself in the competitive REITs industry.
Profitability Analysis
The company's Profitability Rank stands at 6/10, indicating a relatively high level of profitability. The Operating Margin is 16.49%, which is better than 14.8% in 669 companies. The company's ROE, ROA, and ROIC, which are -9.52%, -3.74%, and 1.26% respectively, further underscore its profitability. Over the past 10 years, the company has had 9 years of profitability, better than 75.6% in 750 companies.
Growth Prospects
SL Green Realty Corp's Growth Rank is 2/10, indicating a relatively low level of growth. The company's 3-year and 5-year revenue growth rate per share are -6.10% and -4.50% respectively. The future total revenue growth rate and EPS without NRI growth rate are projected to be -2.49% and -2.44% respectively.
Major Stock Holders
Ray Dalio (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) are the top two holders of the company's stock, holding 33,282 and 10,164 shares respectively.
Competitive Landscape
SL Green Realty Corp faces stiff competition from Douglas Emmett Inc (DEI, Financial), Empire State Realty OP LP (ESBA, Financial), and Highwoods Properties Inc (HIW, Financial), with market caps of $2.34 billion, $2.29 billion, and $2.44 billion respectively.
Conclusion
In conclusion, SL Green Realty Corp's stock performance, profitability, and growth prospects make it a compelling investment option. Despite the competitive landscape, the company's strong profitability and modest undervaluation suggest potential for future growth. However, investors should keep an eye on the company's low growth rank and the future total revenue growth rate and EPS without NRI growth rate.
