Scentre Group (SCG.AX) stock analysis

In our weekly check, Scentre Group is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5.

About Scentre Group

Scentre Group is a Real Estate company (REIT - Retail) based in Australia, listed on ASX as SCG.AX.

What our checks show for SCG.AX

Red flags

• Net debt is 5.5x a year of EBITDA (debt/equity 0.72). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.5 times: a weak year could make the payments hard.
• Analysts expect revenue to shrink about 6.1% a year.
• Analysts expect the net margin to shrink by 5.8 points from today's 66.2%.
• The stock has fallen as much as 73% from a peak. Would you have held through that?

Warning signs

• Operating cash flow is only 0.58x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 8.7% a year.
• Revenue grew only 3% a year over the last 3 years.
• Free cash flow covers the dividend only 0.8 times.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 5.3%.

Strengths

• The net margin rose by 27.3 points over 5 years, to 66.2%.
• The gross margin is 71.2% and has risen by 1.7 points: pricing power is holding.
• Earnings per share grew 80.3% a year over the last 3 years.
• Net profit grew 80.9% a year over the last 3 years.
• The company keeps 66.2% of its revenue as net profit.
• Free cash flow is 37.6% of revenue: cash for dividends, buybacks or growth.

Similar companies

C38U.SI · KIM · REG · URW.PA · FRT · BRX

Questions

What grade does Scentre Group (SCG.AX) have?

In our weekly check, Scentre Group is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SCG.AX stock?

This week's biggest flags for Scentre Group: High debt, Weak interest cover, Weak revenue forecast. In total 11 of 25 checks show a warning or a red flag.

What does Scentre Group do?

Scentre Group is a Real Estate company (REIT - Retail) based in Australia, listed on ASX as SCG.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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