Scentre Group (SCG) AI Stock Analysis

• Market Cap: $19.20B
• Dividend Yield: 4.66%
• Average Volume (3M): 11.31M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.05
• Revenue Growth: 5.05%
• EPS Growth: 500.30%
• Country: AU
• Employees: 2,860
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Retail
• EPS (TTM): 0.10
• Shares Outstanding: 5,208,664,000
• 10 Day Avg. Volume: 11,854,398
• 30 Day Avg. Volume: 11,312,674
• 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: $3.88
• Price Target Upside: 5.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: AU$4.00 ▲(8.40%Upside)

Scentre Group's overall performance is driven by strong revenue growth and improved profitability. The stock's positive technical trends support a favorable outlook, while fair valuation and attractive dividend yield enhance its appeal. However, limited cash flow growth and the absence of recent EBIT are concerns to monitor.

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 generates revenue primarily through rental income from its portfolio of retail properties, which include some of the most prominent shopping centers across Australia and New Zealand under the Westfield brand. The company leases retail spaces to a diverse array of tenants, ranging from large anchor stores to smaller specialty retailers, food and beverage outlets, and service providers. In addition to rental income, Scentre Group earns revenue from property management services, such as maintenance and marketing support for its tenants. The company also benefits from development profits by enhancing and expanding its existing centers or developing new retail projects. Strategic partnerships with retail brands and service providers further bolster its earnings by creating desirable shopping environments that attract high foot traffic and customer engagement.

Scentre Group Financial Statement Overview

Summary

Scentre Group shows strong revenue growth and improved profitability, with a substantial increase in net income. The balance sheet is stable with moderate leverage, and cash flows are steady but lack significant growth. The absence of EBIT in the latest period is a concern.

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
EBITDA	1.93B	1.60B	1.75B	1.52B	-2.82B
Net Income	1.05B	174.90M	300.60M	887.90M	-3.73B
Balance Sheet
Total Assets	36.35B	35.67B	37.01B	36.64B	38.06B
Cash, Cash Equivalents and Short-Term Investments	380.60M	296.40M	679.00M	978.70M	2.60B
Total Debt	16.77B	15.71B	15.87B	15.47B	16.42B
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: 3.69
• 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 3.69 is above the 20-day moving average (MA) of 3.68, above the 50-day MA of 3.67, and above the 200-day MA of 3.52, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 27.43 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	68 Neutral	$19.20B	18.24	5.94%	4.66%	5.05%	500.30%
Sector *	64 Neutral	$6.92B	18.30	-1.93%	6.80%	4.67%	-25.44%
CNRAF	―	$7.41B	12.85	7.73%	4.97%	―	―
GPTGF	―	$6.27B	―	-1.94%	4.83%	―	―
MRVGF	―	$5.59B	―	-6.29%	3.03%	―	―
STKAF	―	$8.51B	28.40	4.54%	6.37%	―	―
URW	67 Neutral	AU$20.50B	81.72	0.93%	4.28%	7.18%	―

Scentre Group Corporate Events

Scentre Group Updates Registry Address for Investor Services

Scentre Group has announced a change in the registry address for Computershare Investor Services, effective from June 10, 2025. This change requires all lodgements by member organizations, securityholders, and other parties to be made at the new address, which is located at Level 4, 44 Martin Place, Sydney NSW 2000.

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 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.