SL Green Realty Corp (SLG, Financial), a major player in the REITs industry, has seen a significant surge in its stock price over the past three months. With a current market cap of $2.61 billion and a stock price of $40.6, the company's stock has gained 2.58% over the past week and a whopping 59.64% over the past three months. This article aims to delve into the factors contributing to this impressive performance and provide an in-depth analysis of the company's financial health.
Understanding SL Green Realty Corp's Valuation
SL Green Realty Corp, a prominent Manhattan property owner and landlord, has interests in around 35 million square feet of wholly owned and joint-venture office space. The company also has additional property exposure through its limited portfolio of well-located retail space. It operates as a real estate investment trust. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of SL Green Realty Corp is $56.17, indicating a modest undervaluation. However, three months ago, the GF Value was $55.93, suggesting a possible value trap. Investors should exercise caution and consider these factors before making investment decisions.
Profitability Analysis of SL Green Realty Corp
SL Green Realty Corp's Profitability Rank stands at 6/10, indicating a relatively profitable business. The company's Operating Margin is 16.49%, better than 14.91% of 664 companies in the same industry. However, the company's ROE and ROA are -9.52% and -3.74% respectively, which are better than 10.7% and 12.25% of 738 and 743 companies respectively. The company's ROIC is 1.26%, better than 13.6% of 669 companies. Over the past 10 years, the company has been profitable for 9 years, better than 75.5% of 747 companies.
Growth Prospects of SL Green Realty Corp
The company's Growth Rank is 2/10, indicating relatively low growth. The company's 3-Year Revenue Growth Rate per Share is -6.10%, better than 20.85% of 633 companies. The 5-Year Revenue Growth Rate per Share is -4.50%, better than 23.18% of 548 companies. The company's future 3-Year to 5-Year Total Revenue Growth Rate and EPS Growth Rate are estimated to be -2.49% and -2.44% respectively, better than 12.37% and 12.68% of 186 and 71 companies respectively.
Top Holders of SL Green Realty Corp
Ray Dalio (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) are the top two holders of SL Green Realty Corp's stock. Ray Dalio (Trades, Portfolio) holds 33,282 shares, accounting for 0.05% of the company's stock, while Joel Greenblatt (Trades, Portfolio) holds 10,164 shares, accounting for 0.02% of the company's stock.
Competitors in the REITs Industry
SL Green Realty Corp faces competition from Douglas Emmett Inc (DEI, Financial) with a market cap of $2.21 billion, Empire State Realty OP LP (ESBA, Financial) with a market cap of $2.43 billion, and Highwoods Properties Inc (HIW, Financial) with a market cap of $2.4 billion.
Conclusion
In conclusion, SL Green Realty Corp has shown impressive stock performance over the past three months, with a significant surge in its stock price. The company's profitability rank and operating margin indicate a relatively profitable business. However, the company's growth rank suggests relatively low growth. The company faces competition from other players in the REITs industry. Investors should consider these factors before making investment decisions.
