Australia Stock Alert


CLOSING UPDATE: Scentre Group increases 1.6%, led S&P/ASX200 A-REIT higher May 18, 2018 16:00:00 AEST


This is an end of day Alert, produced after today's Australian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Scentre Group, Australia's largest real estate company by market capitalisation, has increased 1.6% to trade at $A4.09 vs. the S&P/ASX200 A-REIT which strengthened 15.0 points (or 1.1%) to 1,364.9. Representing a weighting of about 20.2% of the index, the stock accounted for 29.2% of today's gain. Trading volume was 40% of average at the end of the day. Compared with the All Ordinaries Index which fell 6.3 points (or 0.1%) in the day, this represented a relative price increase of 1.7%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.04 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

Fundamental measures by comparison with the sector average [in brackets] indicate:


+ Price/Earnings of 5.2 [7.5]

+ Price/Earnings/Growth of 0.16 [0.4]

+ Price/Sales of 3.7 [4.3]

+ Price to Book of 1 [1.2]

+ Dividend yield of 5.3% [4.1%]

+ Return on Equity 18.8% [14.9%]

+ Return on Assets 11.3% [8.7%]

+ Return on Capital Employed 14.5% [11.2%]

+ Year-on-Year Earnings Growth of 41% [21.1%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 6.7 times.

+ Total Liabilities/EBITDA of 2.9 is comfortably below the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.6. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

+ As per the Du Pont analysis, Return on Equity of 18.8% is better than sector average of 14.9%.


Scentre Group today is at a discount of 5.3% to the 12-month high of $A4.32 on 13 Dec, 2017. It is at a premium of 11.1% to the 12-month low of $A3.68 on 12 Jul, 2017.

Bearish Signals:

The price decreased 0.5% in the last week.


Morning Alert: Scentre Group increases 0.5%

May 18, 2018 11:00:00 AEST

Scentre Group (ASX:SCG) has increased 2.0c (or 0.5%) to trade at $A4.04.

Scentre Group (AU:SCG; ASX:SCG; AX:SCG)

ISIN: AU000000SCG8

PermID: 4295857143