PROLOGIS INC (PLD) Stock Fundamental Analysis
NYSE:PLD - New York Stock Exchange, Inc. - US74340W1036 - REIT - Currency: USD
PLD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. PLD has an excellent profitability rating, but there are concerns on its financial health. PLD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PLD had positive earnings in the past year.
In the past year PLD had a positive cash flow from operations.
In the past 5 years PLD has always been profitable.
PLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PLD has a Return On Assets of 3.91%. This is amongst the best in the industry. PLD outperforms 88.46% of its industry peers.
Looking at the Return On Equity, with a value of 6.91%, PLD belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
PLD has a Return On Invested Capital (2.73%) which is comparable to the rest of the industry.
PLD had an Average Return On Invested Capital over the past 3 years of 2.52%. This is in line with the industry average of 3.17%.
The 3 year average ROIC (2.52%) for PLD is below the current ROIC(2.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 6.91% | ||
| ROIC | 2.73% |
ROA(3y)3.67%
ROA(5y)3.73%
ROE(3y)6.32%
ROE(5y)6.47%
ROIC(3y)2.52%
ROIC(5y)2.39%
1.3 Margins
The Profit Margin of PLD (45.43%) is better than 95.38% of its industry peers.
In the last couple of years the Profit Margin of PLD has remained more or less at the same level.
With an excellent Operating Margin value of 37.77%, PLD belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
PLD's Operating Margin has improved in the last couple of years.
PLD has a better Gross Margin (74.92%) than 71.54% of its industry peers.
PLD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.77% | ||
| PM (TTM) | 45.43% | ||
| GM | 74.92% |
OM growth 3Y3.59%
OM growth 5Y4.87%
PM growth 3Y-9.67%
PM growth 5Y-0.7%
GM growth 3Y0.52%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PLD is destroying value.
Compared to 1 year ago, PLD has about the same amount of shares outstanding.
PLD has more shares outstanding than it did 5 years ago.
PLD has a worse debt/assets ratio than last year.
2.2 Solvency
PLD has a Debt/Equity ratio of 0.57. This is a neutral value indicating PLD is somewhat dependend on debt financing.
PLD's Debt to Equity ratio of 0.57 is amongst the best of the industry. PLD outperforms 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.38
WACC7.24%
2.3 Liquidity
A Current Ratio of 0.23 indicates that PLD may have some problems paying its short term obligations.
With a Current ratio value of 0.23, PLD is not doing good in the industry: 90.77% of the companies in the same industry are doing better.
PLD has a Quick Ratio of 0.23. This is a bad value and indicates that PLD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.23, PLD is doing worse than 90.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
PLD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.96%, which is quite good.
PLD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.30% yearly.
PLD shows a small growth in Revenue. In the last year, the Revenue has grown by 2.11%.
Measured over the past years, PLD shows a quite strong growth in Revenue. The Revenue has been growing by 19.75% on average per year.
EPS 1Y (TTM)16.96%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%0%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%8.73%
3.2 Future
The Earnings Per Share is expected to grow by 2.75% on average over the next years.
Based on estimates for the next years, PLD will show a quite strong growth in Revenue. The Revenue will grow by 8.64% on average per year.
EPS Next Y-35.4%
EPS Next 2Y-13.82%
EPS Next 3Y-5.92%
EPS Next 5Y2.75%
Revenue Next Year9.5%
Revenue Next 2Y8%
Revenue Next 3Y6.68%
Revenue Next 5Y8.64%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PLD is valuated quite expensively with a Price/Earnings ratio of 25.56.
Based on the Price/Earnings ratio, PLD is valued a bit cheaper than 67.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of PLD to the average of the S&P500 Index (28.78), we can say PLD is valued inline with the index average.
The Price/Forward Earnings ratio is 34.41, which means the current valuation is very expensive for PLD.
PLD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PLD is cheaper than 70.77% of the companies in the same industry.
PLD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.56 | ||
| Fwd PE | 34.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLD is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.9 |
4.3 Compensation for Growth
The excellent profitability rating of PLD may justify a higher PE ratio.
A cheap valuation may be justified as PLD's earnings are expected to decrease with -5.92% in the coming years.
PEG (NY)N/A
PEG (5Y)2.48
EPS Next 2Y-13.82%
EPS Next 3Y-5.92%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.91%. Purely for dividend investing, there may be better candidates out there.
PLD's Dividend Yield is slightly below the industry average, which is at 16.32.
PLD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
On average, the dividend of PLD grows each year by 12.58%, which is quite nice.
PLD has paid a dividend for at least 10 years, which is a reliable track record.
PLD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.58%
Div Incr Years10
Div Non Decr Years14
5.3 Sustainability
95.83% of the earnings are spent on dividend by PLD. This is not a sustainable payout ratio.
The dividend of PLD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP95.83%
EPS Next 2Y-13.82%
EPS Next 3Y-5.92%
102.24
-1.12 (-1.08%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.83%
Inst Owner Change-30.46%
Ins Owners0.25%
Ins Owner Change1.37%
Market Cap94.77B
Analysts78.57
Price Target123.93 (21.21%)
Short Float %1.47%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend3.86
Dividend Growth(5Y)12.58%
DP95.83%
Div Incr Years10
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)90.3%
Min EPS beat(2)68.66%
Max EPS beat(2)111.94%
EPS beat(4)4
Avg EPS beat(4)61.21%
Min EPS beat(4)10.89%
Max EPS beat(4)111.94%
EPS beat(8)7
Avg EPS beat(8)40.98%
EPS beat(12)11
Avg EPS beat(12)46.38%
EPS beat(16)15
Avg EPS beat(16)57.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.66%
Min Revenue beat(4)-3.5%
Max Revenue beat(4)-1.95%
Revenue beat(8)2
Avg Revenue beat(8)-1.15%
Revenue beat(12)6
Avg Revenue beat(12)6.84%
Revenue beat(16)10
Avg Revenue beat(16)8.85%
PT rev (1m)-6.31%
PT rev (3m)-7.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.98%
EPS NY rev (1m)-2.58%
EPS NY rev (3m)-23.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.7%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.56 | ||
| Fwd PE | 34.41 | ||
| P/S | 11.56 | ||
| P/FCF | N/A | ||
| P/OCF | 19.29 | ||
| P/B | 1.76 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 21.9 |
EPS(TTM)4
EY3.91%
EPS(NY)2.97
Fwd EY2.91%
FCF(TTM)-1.09
FCFYN/A
OCF(TTM)5.3
OCFY5.18%
SpS8.85
BVpS58.2
TBVpS58.2
PEG (NY)N/A
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 6.91% | ||
| ROCE | 3.46% | ||
| ROIC | 2.73% | ||
| ROICexc | 2.78% | ||
| ROICexgc | 2.95% | ||
| OM | 37.77% | ||
| PM (TTM) | 45.43% | ||
| GM | 74.92% | ||
| FCFM | N/A |
ROA(3y)3.67%
ROA(5y)3.73%
ROE(3y)6.32%
ROE(5y)6.47%
ROIC(3y)2.52%
ROIC(5y)2.39%
ROICexc(3y)2.54%
ROICexc(5y)2.41%
ROICexgc(3y)2.66%
ROICexgc(5y)2.52%
ROCE(3y)3.19%
ROCE(5y)3.03%
ROICexcg growth 3Y6.79%
ROICexcg growth 5Y6.05%
ROICexc growth 3Y5.95%
ROICexc growth 5Y5.49%
OM growth 3Y3.59%
OM growth 5Y4.87%
PM growth 3Y-9.67%
PM growth 5Y-0.7%
GM growth 3Y0.52%
GM growth 5Y0.68%
F-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.44 | ||
| Cap/Depr | 229.42% | ||
| Cap/Sales | 72.18% | ||
| Interest Coverage | 4.36 | ||
| Cash Conversion | 86.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | N/A |
F-Score4
WACC7.24%
ROIC/WACC0.38
Cap/Depr(3y)289.47%
Cap/Depr(5y)281.07%
Cap/Sales(3y)89.36%
Cap/Sales(5y)90.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.96%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%0%
EPS Next Y-35.4%
EPS Next 2Y-13.82%
EPS Next 3Y-5.92%
EPS Next 5Y2.75%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%8.73%
Revenue Next Year9.5%
Revenue Next 2Y8%
Revenue Next 3Y6.68%
Revenue Next 5Y8.64%
EBIT growth 1Y0.44%
EBIT growth 3Y24.19%
EBIT growth 5Y25.58%
EBIT Next Year78.29%
EBIT Next 3Y25.31%
EBIT Next 5Y26.19%
FCF growth 1Y60.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.58%
OCF growth 3Y17.92%
OCF growth 5Y16.76%