ASX200 Movers: ZIP Co and Scentre Group Shares in the Spotlight

May 05, 2025 12:42 PM AEST | By Team Kalkine Media

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ASX200 Movers: ZIP Co and Scentre Group Shares in the Spotlight — Image source: shutterstock

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Highlights

ZIP Co (ZIP) shares have declined sharply in 2025

Scentre Group (SCG) shares hover near 52-week lows

Valuation metrics reveal contrasting investor sentiment

Two companies from the ASX200 are drawing investor attention for very different reasons in 2025 — fintech player Zip Co (ASX:ZIP) and shopping centre operator Scentre Group (ASX:SCG). Both stocks reflect changing trends across sectors, from digital payments to traditional retail real estate.

Zip Co (ASX:ZIP): A closer look at the numbers
Founded in 2013, Zip Co is a key player in the buy-now-pay-later (BNPL) space, providing consumers the flexibility to pay for purchases over time without interest. Its revenue model includes transaction fees from merchants and late fees from consumers, making it a unique fintech revenue blend.

So far in 2025, the share price of Zip Co has dropped by 44.1%, a significant pullback that invites a closer look at its valuation. One approach involves the price-to-sales (P/S) ratio. Currently, ZIP trades at a P/S multiple of 2.50x — well below its five-year average of 5.81x. This suggests a valuation discount either due to recent share price pressure, growing sales, or a mix of both. The company has reported consistent revenue growth over the last three years, highlighting its potential in a competitive market, even as sentiment around BNPL companies has cooled.

Scentre Group (ASX:SCG): A defensive retail presence
In contrast, Scentre Group, the owner and operator of Westfield-branded shopping centres across Australia and New Zealand, represents a more traditional sector. With a $34 billion property portfolio spanning 42 centres, Scentre boasts a 99%+ occupancy rate and draws over 500 million visits annually.

SCG shares are currently 19.6% above their 52-week lows, indicating steady market confidence. As a prominent real estate company with stable cash flows, Scentre Group is often seen among established ASX dividend stocks, appealing to those seeking yield and lower volatility within the ASX200 index.

Contrasting trajectories
While ZIP and SCG operate in vastly different sectors, their recent share price movements reveal shifting investor attitudes. ZIP reflects the challenges faced by growth-oriented tech stocks, especially in changing macro environments. Meanwhile, SCG illustrates the stability investors often seek in defensive, income-generating assets.

Both companies present contrasting narratives within the ASX200 — one leaning on innovation and user demand, the other on occupancy and foot traffic. For market watchers, these trends offer a snapshot of the broader sentiment playing out across different ASX sectors.

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