SCG share price in focus
Scentre Group is a real estate company specializing in shopping centres, operating under the Westfield brand in Australia and New Zealand.
The group manages a portfolio of 42 centres valued at over $34 billion, boasting an occupancy rate exceeding 99% and attracting more than half a billion visitors annually.
These centres are strategically located in prime trade areas and feature long-term tenancies with retailers catering to diverse consumer interests in fashion, dining, leisure, and entertainment.
TLS shares
Starting life as a state-owned enterprise, Telstra has gone through many stages to today be Australia’s largest telecommunications company by market share. They provided over 22.5 million retail mobile accounts in 2023.
Telstra is responsible for building and operating telecommunication networks. Revenue comes from a range of activities including fixed broadband, mobile, data and IP, and digital media. The company has also expanded outside of Australia to over 20 countries where it provides services to governments and businesses.
The competitive advantage that Telstra has over competitors lies in its reach and scale, providing coverage to 99.6% of the Australian population and 5G services to over 85%.
SCG share price valuation
We would consider SCG to be a ‘mature’ or ‘blue-chip’ business, so some of the metrics that could be worth considering include the debt/equity ratio, average yield, and return on equity, or ROE. These measures give us a sense of the company’s debt levels, their ability to generate returns from their assets, and their ability to consistently return profits to shareholders.
For CY23, Scentre Group reported a debt/equity ratio of 87.3%, meaning the company has more equity than debt.
Over the last 5 years, SCG has delivered an average dividend yield of 4.8% per year. This is important to note if you’re looking for income from your investments.
Finally, in CY23, SCG reported an ROE of 1.0%. For a mature business you generally want to see an ROE of more than 10%, so SCG’s returns are a bit less than what we’d expect.
In FY24, Telstra Group Ltd reported a debt/equity ratio of 99.4%, meaning the company has more equity than debt.
As for dividends, since 2019 TLS has achieved an average dividend yield of 3.6% per year, and in FY24 reported an ROE of 10.7%
It’s important to keep in mind that these are only a small selection of metrics and don’t give us enough information to value the business or make an investment decision. To learn more about valuation, check out one of our free online investing courses.
