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Scentre Group (AU:SCG)
:SCG

Scentre Group (SCG) AI Stock Analysis

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AU

Scentre Group

(OTC:SCG)

Rating:68Neutral
Price Target:
AU$4.00
▲(10.50%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 (SCG) vs. iShares MSCI Australia ETF (EWA)

Scentre Group Business Overview & Revenue Model

Company DescriptionScentre 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 MoneyScentre Group primarily generates revenue through rental income from its extensive portfolio of retail properties, particularly the Westfield shopping centres. Key revenue streams include leasing retail space to a diverse mix of tenants, including international and local retailers, dining establishments, and entertainment providers. The company also earns income from property management and development services, as well as through strategic partnerships with retailers and experiential service providers that enhance the shopping experience. Additional revenue is derived from ancillary services such as parking facilities and advertising within the shopping centres. The group's success is significantly influenced by the performance of the retail sector, consumer spending trends, and the strategic location of its properties.

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
70
Positive
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
65
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.64B2.51B2.46B2.28B2.16B
Gross Profit1.84B1.76B1.64B1.59B1.58B
EBITDA1.93B1.60B1.75B1.52B-2.82B
Net Income1.05B174.90M300.60M887.90M-3.73B
Balance Sheet
Total Assets36.35B35.67B37.01B36.64B38.06B
Cash, Cash Equivalents and Short-Term Investments380.60M296.40M679.00M978.70M2.60B
Total Debt16.77B15.71B15.87B15.47B16.42B
Total Liabilities18.17B17.65B18.29B17.46B19.07B
Stockholders Equity18.19B17.84B18.53B19.00B18.83B
Cash Flow
Free Cash Flow659.40M624.10M1.09B844.40M645.50M
Operating Cash Flow1.04B1.03B1.12B868.20M666.90M
Investing Cash Flow-460.00M-438.90M-481.30M-323.00M-338.90M
Financing Cash Flow-526.20M-1.01B-941.30M-2.16B2.02B

Scentre Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.62
Price Trends
50DMA
3.62
Positive
100DMA
3.54
Positive
200DMA
3.51
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
46.01
Neutral
STOCH
25.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SCG, the sentiment is Neutral. The current price of 3.62 is below the 20-day moving average (MA) of 3.67, above the 50-day MA of 3.62, and above the 200-day MA of 3.51, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SCG.

Scentre Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUVCX
72
Outperform
$11.41B13.947.73%4.80%1.97%156.14%
AUSCG
68
Neutral
AU$18.83B17.895.94%4.75%5.05%500.30%
AUURW
67
Neutral
AU$20.56B84.280.93%6.44%7.18%
66
Neutral
£989.60M12.10-0.02%5.01%10.34%31.28%
AUSGP
63
Neutral
$13.40B29.934.54%2.84%18.41%86.24%
AUGPT
58
Neutral
$9.56B-1.94%4.79%8.59%16.36%
AUMGR
55
Neutral
AU$8.80B-6.29%4.04%22.66%-3.80%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SCG
Scentre Group
3.62
0.66
22.21%
AU:GPT
GPT Group
4.99
1.08
27.75%
AU:MGR
Mirvac Group
2.23
0.46
26.13%
AU:SGP
Stockland
5.59
1.46
35.29%
AU:VCX
Vicinity Centres
2.48
0.71
39.95%
AU:URW
Unibail-Rodamco-Westfield SE Stapled Security Chess Depository Interests Repr 0.05 Sh
7.26
1.41
24.10%

Scentre Group Corporate Events

Scentre Group Updates Registry Address for Investor Services
Jun 10, 2025

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
May 27, 2025

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
May 7, 2025

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.

Scentre Group AGM Results Indicate Strong Shareholder Support
Apr 9, 2025

Scentre Group announced the results of its Annual General Meeting held on April 9, 2025. The meeting saw the approval of several resolutions, including the re-election of directors and the adoption of the remuneration report. All resolutions were carried with significant majority votes, indicating strong shareholder support. The results reflect the company’s stable governance and continued confidence from stakeholders in its strategic direction.

Scentre Group Holds Hybrid Annual General Meeting
Apr 9, 2025

Scentre Group held its Annual General Meeting on April 9, 2025, in a hybrid format, allowing both in-person and online participation. The meeting was chaired by Ilana Atlas, who acknowledged the traditional custodians of the land. CEO Elliott Rusanow was unable to attend due to a recent surgery but had pre-recorded his address. The meeting included introductions of the board members and executive team, with a focus on addressing questions from securityholders.

Scentre Group Announces Cessation of Performance Rights
Apr 3, 2025

Scentre Group announced the cessation of 272,547 performance rights due to the lapse of conditional rights that were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s performance metrics and future incentive plans.

Scentre Group Prices A$650 Million Subordinated Notes
Mar 26, 2025

Scentre Group has announced the pricing of A$650 million in subordinated notes in the Australian market, comprising both floating and fixed-to-floating rate notes. The proceeds will be used to redeem existing notes and diversify the company’s debt sources, ultimately reducing the overall weighted average cost of debt and extending the call date profile of its subordinated notes.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025