SCG share price in focus
Center Group is a real estate company specializing in shopping centers, operating under the Westfield brand in Australia and New Zealand.
The group manages a portfolio of 42 centers valued at more than $34 billion, with an occupancy rate of more than 99 percent and attracting more than half a billion visitors annually.
These centers are strategically located in prime commercial areas and feature long-term tenancies with retailers catering to consumers’ diverse interests in fashion, dining, leisure and entertainment.
COL Shares
Coles is a leading Australian retailer of everyday essentials including fresh food, groceries, general merchandise, alcohol, fuel and financial services. It was founded in Victoria in 1914 and still calls Melbourne its home base.
Coles was previously owned by the listed giant. Wes Farmers From 2007 until 2018, when it was demerged and listed as its own entity on the ASX under the ticker symbol ‘COL’. Coles’ earnings are surprisingly dominated by the supermarket side of the business, however, it also partly or wholly owns and operates affiliated businesses such as Flybuys, Liquorland, First Choice, Vintage Cellars, Coles Express and more.
While Coles is second only to Woolworths in the supermarket sector, it still controls a significant share of the Australian grocery market (about 28%). Since its listing in 2018, Coles has established itself as a fairly reliable dividend payer for income-seeking investors.
Determination of SCG and COL share price
We would consider SCG to be a ‘mature’ or ‘blue chip’ business, so some metrics that might be worth considering include debt/equity ratio, average yield, and return on equity.or ROE. These measures give us an idea of a company’s level of debt, its ability to generate a return on its assets, and its ability to consistently return dividends to shareholders.
For CY23, Center Group reported a debt/equity ratio of 87.3%, meaning the company has more equity than debt.
Over the past 5 years, SCG has earned an average dividend yield of 4.8% per annum. This is important to note if you are looking for income from your investment.
Finally, in CY23, SCG reported an ROE of 1.0%. For a mature business you typically want to see an ROE of over 10%, so SCG’s return is a bit lower than we expected.
As for Coles Group Limited, they reported a debt/equity ratio of 278.4% in FY24, meaning the company is leveraged.
Since 2019, COL has earned an average dividend yield of 3.8% per annum, and reported an ROE of 32.4% in FY24.
Keep in mind that this is only a small selection of metrics. We don’t have enough information to value businesses or make investment decisions. To learn more about valuation, check out one of our free online investing courses.
