SL Green Realty Corp (SLG, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $3.43 billion, with a current price of $52.94 per share. Over the past week, SLG has experienced a slight dip of 0.70%, but this minor setback is overshadowed by the impressive 14.47% increase over the past three months. According to the GF Value, the stock is currently Fairly Valued at $51.32, a slight adjustment from the previous assessment of Modestly Undervalued when the GF Value was $55.11. This recent price trend suggests that SL Green Realty Corp is maintaining a stable market position, aligning closely with its intrinsic value.
Introduction to SL Green Realty Corp
SL Green Realty Corp, a titan in the REITs industry, is a preeminent property owner and landlord in Manhattan. The company boasts a significant portfolio, with interests in approximately 33 million square feet of office space, both wholly owned and joint-venture, as well as a selection of prime retail locations. Operating as a real estate investment trust, SL Green Realty is a key player in the New York real estate market, providing investors with exposure to some of the most valuable and dynamic properties in the region.
Assessing Profitability
SL Green Realty's Profitability Rank is a moderate 6/10, reflecting a decent level of profitability within the industry. The company's Operating Margin stands at -33.49%, which, despite being negative, is competitive within its peer group. In terms of return on equity, SLG's ROE is -13.19%, outperforming 7.99% of the industry. The ROA at -5.16% and ROIC at -2.84% also indicate that SLG is generating better cash flow relative to its capital investment than some competitors. Over the past decade, SL Green Realty has maintained profitability for 8 years, showcasing its resilience and financial stability.
Growth Prospects and Challenges
The company's Growth Rank is a low 2/10, indicating limited growth prospects in the near term. SLG's 3-Year Revenue Growth Rate per Share is -1.40%, and the 5-Year Revenue Growth Rate per Share is -1.90%, both of which suggest a slight decline in revenue. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at -11.72%, and the EPS Growth Rate (Future 3Y To 5Y Est) is -27.53%, both of which raise concerns about the company's future revenue and earnings potential.
Significant Shareholders
SL Green Realty's shareholder base includes notable investors who may exert influence over the company's strategic direction. Louis Moore Bacon (Trades, Portfolio) is the leading holder with 984,805 shares, representing 1.52% of the company. Paul Tudor Jones (Trades, Portfolio) follows with 125,894 shares, accounting for 0.19%, and Chris Davis (Trades, Portfolio) holds 85,380 shares, making up 0.13% of SLG's shares. The involvement of these prominent investors underscores the company's appeal to value-oriented shareholders.
Competitive Landscape
When compared to its competitors, SL Green Realty holds its ground with a market cap of $3.43 billion. Empire State Realty OP LP (ESBA, Financial) has a slightly smaller market cap of $2.69 billion, while COPT Defense Properties (CDP, Financial) is close behind at $2.68 billion. Cousins Properties Inc (CUZ, Financial), on the other hand, has a marginally larger market cap of $3.53 billion. This competitive analysis places SLG firmly in the middle of the pack among its closest peers in terms of market capitalization.
Conclusion
In summary, SL Green Realty Corp's current market position and valuation suggest a company that is fairly valued with moderate profitability. While growth prospects appear limited, the company's ability to maintain profitability over the years is commendable. The presence of significant shareholders may provide a level of stability and potential influence on the company's future. Compared to its competitors, SLG is holding a competitive market standing, which may offer some reassurance to investors looking for opportunities within the REIT sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
