GURUFOCUS.COM » STOCK LIST » USA » NYSE » Simon Property Group Inc (NYSE:SPG) » Definitions » Financial Strength
Switch to:

Simon Property Group Financial Strength

: 3 (As of Jun. 2022)
View and export this data going back to 1993. Start your Free Trial

Simon Property Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Simon Property Group Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Simon Property Group's Interest Coverage for the quarter that ended in Jun. 2022 was 3.35. Simon Property Group's debt to revenue ratio for the quarter that ended in Jun. 2022 was 4.96. As of today, Simon Property Group's Altman Z-Score is 0.97.


Competitive Comparison

For the REIT - Retail subindustry, Simon Property Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Simon Property Group Financial Strength Distribution

For the REITs industry and Real Estate sector, Simon Property Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Simon Property Group's Financial Strength falls into.



Simon Property Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Simon Property Group's Interest Expense for the months ended in Jun. 2022 was $-187 Mil. Its Operating Income for the months ended in Jun. 2022 was $627 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $25,388 Mil.

Simon Property Group's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*626.761/-187.316
=3.35

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Simon Property Group Inc interest coverage is 3.2, which is low.

2. Debt to revenue ratio. The lower, the better.

Simon Property Group's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 25388.408) / 5119.368
=4.96

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Simon Property Group has a Z-score of 0.97, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.97 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Simon Property Group  (NYSE:SPG) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Simon Property Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Simon Property Group Financial Strength Related Terms

Thank you for viewing the detailed overview of Simon Property Group's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Simon Property Group Business Description

Simon Property Group logo
Address
225 West Washington Street, Indianapolis, IN, USA, 46204
Simon Property Group is the second- largest real estate investment trust in the United States. Its portfolio includes an interest in 207 properties: 119 traditional malls, 69 premium outlets, 14 Mills centers (a combination of a traditional mall, outlet center, and big-box retailers), six lifestyle centers, and five other retail properties. Simon's portfolio averaged $693 in sales per square foot over the 12 months prior to the pandemic. The company also owns a 21% interest in Klepierre, a European retail company with investments in shopping centers in 16 countries, and joint venture interests in 33 premium outlets across 11 countries.
Executives
Roe Peggy Fang director 100 COMMERCE LANE APT. 1401 BETHESDA MD 20814
Simon Eli officer: Sr. VP, Corporate Investments 225 W. WASHINGTON ST. INDIANAPOLIS IN 46204
Reuille Adam officer: SVP & Chief Accounting Officer 225 W. WASHINGTON ST. INDIANAPOLIS IN 46204
Stewart Marta R director C/O NORFOLK SOUTHERN CORP THREE COMMERCIAL PL NORFOLK VA 23510-9219
Selig Stefan M director 2 EAST 70TH STREET NEW YORK NY 10021
Snyder Alexander L.w. officer: Asst. General Counsel/Sec. 225 W. WASHINGTON ST. INDIANAPOLIS IN 46204
Aeppel Glyn director 6 WHIPPOORWILL LANE WESTPORT CT 06880
Rodkin Gary M director 700 ANDERSON HILL RD PURCHASE NJ 10577
Shashoua Stanley N. officer: SVP International Development 225 W. WASHINGTON ST. INDIANAPOLIS IN 46204
Mcdade Brian J. officer: SVP and Treasurer 225 W. WASHINGTON ST. INDIANAPOLIS IN 46204
Barkley James M officer: General Counsel 115 W WASHINGTON ST INDIANAPOLIS IN 46204
Lentz Matthew David officer: EVP & Chief Investment Officer 225 W. WASHINGTON ST. INDIANAPOLIS IN 46204
Contis David J officer: Sr. EVP/Pres.- Simon Malls 2 NORTH RIVERSIDE PLAZA SUITE 600 CHICAGO IL 60606
Fivel Steven E officer: Assistant General Counsel C/O BRIGHTPOINT INC 7635 INTERACTIVE WAY, SUITE 200 INDIANAPOLIS IN 46278
Glasscock Larry C director SYSCO CORPORATION 1390 ENCLAVE PARKWAY HOUSTON TX 77077

Simon Property Group Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)