SPG
Simon Property Group, Inc.
Real Estate · REIT - Retail · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The growth and profitability factors were strong contributors, with near-perfect profitability scoring driven by an 84.3% net margin and 13.2% return on assets, and meaningful growth from a +96.6% net income gain.
- Financial health scored in the middle range due to the elevated debt-to-equity ratio of 5.46 and a thin interest coverage ratio of 3.3, tempering the otherwise strong earnings story.
- The absence of a macro theme assignment and the volatility introduced by the 2025Q4 revenue and operating income swings both weighed on the composite, resulting in a total score of 58.3 out of 100.
Why Not Higher
- The 2025Q4 quarterly anomaly — with revenue of -$2,781,581,000 and operating income of -$1,394,058,000 — created significant momentum uncertainty that the model could not overlook despite positive net income in every quarter.
- High leverage (debt-to-equity of 5.46) combined with no macro theme alignment meant two structural factors pulled the composite score down from what the profitability and growth metrics alone might have supported.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $5,963,798,000 to FY2025's $6,364,505,000, a gain of +6.7%. Net income nearly doubled, rising +96.6% from FY2024's $2,729,021,000 to FY2025's $5,364,120,000.
The model rewarded the substantial acceleration in net income (+96.6% in FY2025) alongside solid top-line growth (+6.7% in FY2025), stopping short of a perfect score likely because revenue growth, while positive, was moderate rather than exceptional.
In FY2025, SPG posted a net margin of 84.3%, an operating margin of 49.9%, and a return on assets of 13.2%, reflecting broad-based profitability across all three measures.
The model awarded a perfect score because all three profitability metrics in FY2025 are exceptionally high, with a net margin above 84% and a double-digit return on assets signaling highly efficient conversion of revenue and assets into earnings.
In FY2025, SPG carried a debt-to-equity ratio of 5.46 and an interest coverage ratio of 3.3, against total assets of $40,606,466,000.
The model assigned a middling score because the elevated debt-to-equity ratio of 5.46 in FY2025 signals significant leverage, and an interest coverage ratio of 3.3 in FY2025, while positive, leaves a relatively thin buffer, tempering the otherwise large asset base.
Over the last four reported quarters, revenue showed a highly irregular pattern: $1,498,459,000 in 2025Q2, $1,601,572,000 in 2025Q3, -$2,781,581,000 in 2025Q4, and $1,757,093,000 in 2026Q1. Operating income followed a similarly erratic path, with a large negative figure of -$1,394,058,000 in 2025Q4 sandwiched between positive quarters, while net income remained positive throughout all four quarters.
The model's moderate score reflects the mixed signal: net income stayed positive each quarter, but the sharp negative swings in revenue and operating income in 2025Q4 introduced significant volatility that prevented a higher momentum rating.
Dividends per share have risen each year from FY2022's $6.90 to FY2023's $7.45, FY2024's $8.10, and FY2025's $8.55, representing a consistent upward trend over the period.
The model acknowledged the unbroken multi-year growth in dividends per share through FY2025, but the score of 7.5 out of 20 suggests the model's methodology weighs additional factors such as payout ratio or yield context that are not captured by the trend alone.
SPG is not currently assigned to any of the 24 tracked macro themes.
The absence of a theme assignment means the model did not apply any thematic tailwind or alignment score to this security; this is a neutral classification rather than a negative signal about the company's business.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Simon Property Group delivered solid top-line growth of +6.7% in FY2025 alongside a near-doubling of net income (+96.6%), and posted exceptional profitability metrics including an 84.3% net margin and 13.2% return on assets. However, the balance sheet carries meaningful leverage with a debt-to-equity ratio of 5.46 and an interest coverage ratio of only 3.3, and quarterly momentum was disrupted by sharp negative swings in revenue and operating income in 2025Q4. Dividends per share have grown consistently from $6.90 in FY2022 to $8.55 in FY2025, but SPG holds no current macro theme assignment, leaving the composite score at a moderate 58.3 out of 100 with a High risk rating.
Plain English
SPG is making a lot of money — profits nearly doubled last year and margins are extraordinarily high — but the company carries a heavy debt load and had a very volatile quarter that makes the overall picture mixed enough to warrant further research before acting.
Bull Case vs. Bear Case
Bull Case
- Net income surged +96.6% in FY2025, reaching $5,364,120,000, while revenue grew a steady +6.7%, demonstrating strong earnings acceleration on top of consistent top-line expansion.
- Profitability metrics are exceptional across the board: an 84.3% net margin, a 49.9% operating margin, and a 13.2% return on assets in FY2025 all point to highly efficient conversion of revenue and assets into earnings.
- Dividends per share have risen every year from $6.90 in FY2022 to $8.55 in FY2025, reflecting an unbroken multi-year upward trend in shareholder income.
Bear Case
- SPG's debt-to-equity ratio of 5.46 in FY2025 signals significant leverage, and an interest coverage ratio of just 3.3 leaves a relatively thin buffer against any deterioration in operating income.
- Quarterly momentum was severely disrupted in 2025Q4, when revenue swung to -$2,781,581,000 and operating income fell to -$1,394,058,000, introducing substantial volatility into the recent financial trend.
- SPG is not assigned to any of the 24 tracked macro themes, meaning no thematic tailwind is currently recognized by the model, which weighed on the composite score.
What Could Change the Picture
Bullish Triggers
- A sustained return to positive and growing quarterly revenue and operating income — particularly a normalization of the anomalous 2025Q4 figures — would significantly strengthen the momentum picture.
- A meaningful reduction in the debt-to-equity ratio or improvement in interest coverage would alleviate the primary financial health concern and could support a higher composite assessment.
Bearish Triggers
- If the sharp negative swings seen in 2025Q4 revenue and operating income recur or worsen in future quarters, confidence in the earnings trajectory would erode materially.
- Any compression in the currently exceptional net margin of 84.3% or return on assets of 13.2% — especially given the high leverage — could quickly shift the risk profile further to the downside.
Risk Profile
High RiskSPG's High risk rating is primarily driven by a debt-to-equity ratio of 5.46 and an interest coverage ratio of only 3.3 in FY2025, which together indicate the company is heavily leveraged with limited cushion if earnings decline. Compounding this, the sharp negative swings in revenue and operating income during 2025Q4 introduce meaningful uncertainty about the stability of near-term cash flows.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.