Scentre Group (SCG) AI Stock Analysis

• Market Cap: $21.36B
• Dividend Yield: 4.35%
• Average Volume (3M): 8.85M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.91
• Revenue Growth: 5.44%
• EPS Growth: 231.88%
• Country: AU
• Employees: 2,860
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.15
• Shares Outstanding: 5,216,417,500
• 10 Day Avg. Volume: 9,070,226
• 30 Day Avg. Volume: 8,850,874
• PEG Ratio: 0.03
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 6.75
• P/FCF Ratio: 27.00
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 13.02
• Enterprise Value/Gross Profit: 18.51
• Enterprise Value/Ebitda: 39.81
• 1Y Price Target: $4.30
• Price Target Upside: 7.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: AU$4.50 ▲(12.50% Upside)

Scentre Group's overall stock score of 70 reflects strong financial performance with solid revenue growth and improved profitability. The technical analysis indicates a bullish trend, supported by positive momentum indicators. The valuation is reasonable with an attractive dividend yield, making it appealing for income investors. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to enhance its market position and attract tenants, supporting long-term financial stability.

Profitability

Significant improvement in net profit margin reflects enhanced operational efficiency and effective cost management, strengthening financial health.

Balance Sheet Stability

A balanced capital structure with a strong equity ratio ensures financial resilience and the ability to manage debt effectively over time.

Negative Factors

Leverage

Moderate leverage could limit financial flexibility and increase risk, especially in economic downturns, impacting long-term growth potential.

Cash Flow Growth

Limited cash flow growth may hinder the company's ability to fund new projects or expansions, potentially affecting future revenue streams.

EBIT Absence

Lack of EBIT data can obscure true operational performance, making it difficult to assess profitability and efficiency accurately.

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 leasing retail space to a variety of tenants, including major national and international brands. The company's revenue model is largely driven by rental income from these leases, which may include fixed rents and percentage rents based on tenants' sales performance. Additionally, Scentre Group earns income through property management fees, development fees, and ancillary services offered to tenants. The company also benefits from strategic partnerships with retailers and brands, enhancing foot traffic and customer engagement in its centers. Other factors contributing to its earnings include its focus on property redevelopment and expansion, aimed at increasing the value and attractiveness of its retail assets.

Scentre Group Financial Statement Overview

Summary

Scentre Group's financial performance showcases solid revenue growth and improved profitability, particularly in net income. The balance sheet is stable with moderate leverage, while cash flow generation remains steady. However, the absence of EBIT in the latest period and limited cash flow growth are areas to monitor. Overall, the company is financially sound but should focus on enhancing operational efficiency and cash flow growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.67B	2.64B	2.51B	2.46B	2.28B	2.16B
Gross Profit	1.88B	1.84B	1.76B	1.64B	1.59B	1.58B
EBITDA	874.80M	1.93B	1.62B	1.75B	1.52B	1.72B
Net Income	1.43B	1.05B	174.90M	300.60M	887.90M	-3.73B
Balance Sheet
Total Assets	36.28B	36.35B	35.67B	37.01B	36.64B	38.06B
Cash, Cash Equivalents and Short-Term Investments	318.40M	380.60M	296.40M	679.00M	978.70M	2.60B
Total Debt	16.36B	16.77B	15.71B	15.87B	15.47B	16.42B
Total Liabilities	17.69B	18.17B	17.65B	18.29B	17.46B	19.07B
Stockholders Equity	18.41B	18.19B	17.84B	18.53B	19.00B	18.83B
Cash Flow
Free Cash Flow	849.90M	659.40M	624.10M	1.09B	844.40M	645.50M
Operating Cash Flow	1.02B	1.07B	1.07B	1.12B	868.20M	666.90M
Investing Cash Flow	-402.20M	-460.00M	-438.90M	-481.30M	-342.00M	-356.60M
Financing Cash Flow	-572.70M	-526.20M	-1.01B	-941.30M	55.30M	-201.90M

Scentre Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 4 is below the 20-day moving average (MA) of 4.09, below the 50-day MA of 4.11, and above the 200-day MA of 3.75, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SCG.

Scentre Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGP	75 Outperform	AU$14.08B	16.82	7.99%	4.33%	4.75%	170.39%
SCG	70 Outperform	$21.36B	14.92	7.71%	4.35%	5.44%	231.88%
VCX	66 Neutral	$11.36B	11.20	9.03%	4.88%	0.29%	83.44%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GPT	60 Neutral	$10.46B	27.69	3.56%	4.39%	12.66%	―
MGR	54 Neutral	AU$8.09B	119.19	0.71%	4.48%	-18.48%	―

Scentre Group Corporate Events

Scentre Group Sees Growth in Visitation and Sales Amid Strategic Investments

Scentre Group reported a 3.1% increase in customer visitation to its Westfield destinations, with total business partner sales rising to $29.5 billion, reflecting strong demand and high occupancy rates. The company continues to invest in redevelopments and new experiences, enhancing its market position and driving growth, as evidenced by recent openings and capital management strategies.

Scentre Group Explores Strategic Opportunities at Westfield Chermside

Scentre Group has acknowledged a media report about a potential sale of a further interest in Westfield Chermside to a Dexus fund, as part of its ongoing capital management strategy. The company is exploring strategic opportunities, including forming joint ventures, and will keep the market informed of any new transactions, highlighting its commitment to transparency and strategic growth.

Scentre Group Prices €500 Million in Senior Notes to Strengthen Financial Position

Scentre Group has successfully priced €500 million of 8-year senior notes under its Euro Medium Term Note Programme, with a fixed coupon of 3.45%. The proceeds will be used to repay existing debts, aligning with the Group’s strategy to diversify funding sources, extend debt maturity, and reduce the overall cost of capital. This marks the Group’s return to the EUR market, potentially strengthening its financial positioning and operational flexibility.

Scentre Group Appoints New Director Julie Ann Coates

Scentre Group has announced the appointment of Julie Ann Coates as a director, effective from October 1, 2025. The notice reveals that Coates currently holds no securities or interests in the company’s trusts or contracts, indicating a fresh start in her role. This appointment could signal strategic shifts or reinforce governance within Scentre Group, potentially impacting its operational strategies and stakeholder relations.

Scentre Group Appoints Julie Coates as Non-Executive Director

Scentre Group has announced the appointment of Julie Coates as a non-executive director of its board, effective October 1, 2025. Julie Coates brings a wealth of experience from her previous roles in retail, customer experience, and building materials, which are expected to enhance the board’s capabilities. Her past positions include CEO of CSR Limited and leadership roles at Goodman Fielder Limited and Woolworths Group. Coates is also currently a non-executive director at Wesfarmers Limited and a director at the Green Building Council of Australia. This strategic appointment is anticipated to bolster Scentre Group’s board expertise and influence its future direction positively.

Scentre Group Secures A$1.0 Billion in Senior Notes to Optimize Capital Strategy

Scentre Group has successfully priced a A$1.0 billion 10-year senior note issue in the Australian domestic market with a fixed rate coupon of 5.35%, swapped to a floating rate. The proceeds will be used to repay existing debt, aligning with the company’s strategy to extend debt maturity and reduce capital costs, which could strengthen its financial position and operational flexibility.