SL Green Realty Corp (SLG, Financial) has experienced a notable fluctuation in its stock price recently. With a market capitalization of $3.27 billion, the company's current price stands at $50.41. Over the past week, SLG's stock has seen a significant downturn, with a loss of 12.19%. However, looking at a broader timeframe, the stock has gained 10.06% over the past three months. This recent performance has brought the stock to a valuation that GuruFocus deems as fairly valued, with a GF Value of $49.64, compared to a past GF Value of $54.54, which indicated the stock was modestly undervalued.
Introduction to SL Green Realty Corp
SL Green Realty Corp, operating within the REITs industry, is a prominent entity in the ownership and management of office and retail space, primarily in Manhattan. The company boasts a significant presence with interests in approximately 33 million square feet of wholly owned and joint-venture office space. Additionally, SL Green Realty maintains a strategic portfolio of retail spaces in prime locations. As a real estate investment trust, the company's focus on high-value Manhattan properties positions it uniquely in the market.
Analyzing SL Green Realty's Profitability
SL Green Realty's Profitability Rank stands at 6/10, which is a moderate score reflecting the company's financial health and its ability to sustain profits. The company's operating margin is currently at -33.49%, which, despite being negative, fares better than 2.59% of 695 companies in the same industry. The ROE (Return on Equity) is at -13.19%, surpassing 8.62% of its peers, while the ROA (Return on Assets) is -5.16%, outperforming 11.17% of competitors. The ROIC (Return on Invested Capital) stands at -2.84%, which is also better than 2.13% of other companies. Over the past decade, SL Green Realty has maintained profitability for 8 years, which is a strong indicator of its financial resilience.
Growth Prospects of SL Green Realty
The company's Growth Rank is currently at 1/10, suggesting that SL Green Realty's growth is lagging behind most of its industry counterparts. The 3-year revenue growth rate per share is at -1.40%, which is better than 26.98% of 682 companies in the same sector. The 5-year figure is slightly lower at -1.90%, surpassing 30.14% of 574 companies. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is projected at -11.10%, which, while negative, is still better than 2.11% of the industry. The EPS Growth Rate for the same future period is expected to be -27.53%, indicating potential challenges ahead for the company's earnings.
Significant Shareholders in SL Green Realty
Among the notable holders of SL Green Realty stock, Louis Moore Bacon (Trades, Portfolio) leads with 984,805 shares, representing a 1.52% stake in the company. Following him is Paul Tudor Jones (Trades, Portfolio), holding 125,894 shares, which translates to a 0.19% share percentage. Chris Davis (Trades, Portfolio) also has a significant investment with 85,380 shares, amounting to a 0.13% stake in SLG.
Competitive Landscape
When compared to its competitors, SL Green Realty's market capitalization is closely aligned with those of its peers. Cousins Properties Inc (CUZ, Financial) has a market cap of $3.34 billion, Kilroy Realty Corp (KRC, Financial) is valued at $3.85 billion, and Highwoods Properties Inc (HIW, Financial) stands at $2.54 billion. These figures suggest that SL Green Realty is operating within a highly competitive segment with similar-sized companies.
Conclusion
In summary, SL Green Realty Corp's stock performance has been a mixed bag, with a recent sharp decline but an overall gain in the past three months. The company is currently valued as fairly valued according to the GF Value. Its profitability metrics, while negative, are better than a significant portion of its industry peers, and it has maintained profitability for most of the past decade. However, growth remains a concern, with negative projections for revenue and EPS in the coming years. The company's shareholder base includes several prominent investors, and its market capitalization is competitive within the REIT industry. Investors should weigh these factors carefully when considering SL Green Realty's future prospects.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
