PROLOGIS INC (PLD)
US74340W1036 - REIT
Overall PLD gets a fundamental rating of 4 out of 10. We evaluated PLD against 127 industry peers in the Diversified REITs industry. PLD has an excellent profitability rating, but there are concerns on its financial health. PLD is valied quite expensively at the moment, while 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
With an excellent Return On Assets value of 3.40%, PLD belongs to the best of the industry, outperforming 81.60% of the companies in the same industry.
The Return On Equity of PLD (5.97%) is better than 76.00% of its industry peers.
With a Return On Invested Capital value of 2.75%, PLD perfoms like the industry average, outperforming 52.80% of the companies in the same industry.
PLD had an Average Return On Invested Capital over the past 3 years of 2.38%. This is in line with the industry average of 3.01%.
The last Return On Invested Capital (2.75%) for PLD is above the 3 year average (2.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 5.97% | ||
| ROIC | 2.75% |
ROA(3y)4.04%
ROA(5y)3.73%
ROE(3y)6.94%
ROE(5y)6.47%
ROIC(3y)2.38%
ROIC(5y)2.25%
1.3 Margins
PLD has a better Profit Margin (38.66%) than 88.80% of its industry peers.
In the last couple of years the Profit Margin of PLD has declined.
The Operating Margin of PLD (38.63%) is better than 84.00% of its industry peers.
PLD's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 74.92%, PLD is doing good in the industry, outperforming 68.80% of the companies in the same industry.
PLD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.63% | ||
| PM (TTM) | 38.66% | ||
| GM | 74.92% |
OM growth 3Y6.65%
OM growth 5Y4.94%
PM growth 3Y4.67%
PM growth 5Y-8.27%
GM growth 3Y0.59%
GM growth 5Y0.53%
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.
The number of shares outstanding for PLD has been increased compared to 5 years ago.
The debt/assets ratio for PLD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.83 indicates that PLD is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 1.83, PLD belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that PLD is somewhat dependend on debt financing.
The Debt to Equity ratio of PLD (0.56) is better than 87.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.83 |
ROIC/WACC0.37
WACC7.49%
2.3 Liquidity
PLD has a Current Ratio of 0.21. This is a bad value and indicates that PLD is not financially healthy enough and could expect problems in meeting its short term obligations.
PLD has a worse Current ratio (0.21) than 96.00% of its industry peers.
A Quick Ratio of 0.21 indicates that PLD may have some problems paying its short term obligations.
With a Quick ratio value of 0.21, PLD is not doing good in the industry: 96.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The earnings per share for PLD have decreased strongly by -20.26% in the last year.
PLD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.99% yearly.
Looking at the last year, PLD shows a small growth in Revenue. The Revenue has grown by 0.60% in the last year.
PLD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.40% yearly.
EPS 1Y (TTM)-20.26%
EPS 3Y17.66%
EPS 5Y2.99%
EPS Q2Q%-29.77%
Revenue 1Y (TTM)0.6%
Revenue growth 3Y21.82%
Revenue growth 5Y23.4%
Sales Q2Q%12.17%
3.2 Future
PLD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.10% yearly.
Based on estimates for the next years, PLD will show a quite strong growth in Revenue. The Revenue will grow by 10.57% on average per year.
EPS Next Y-24.43%
EPS Next 2Y-5.73%
EPS Next 3Y1.98%
EPS Next 5Y6.1%
Revenue Next Year11.33%
Revenue Next 2Y10.37%
Revenue Next 3Y10.88%
Revenue Next 5Y10.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
PLD is valuated quite expensively with a Price/Earnings ratio of 40.49.
The rest of the industry has a similar Price/Earnings ratio as PLD.
PLD is valuated expensively when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 41.96, the valuation of PLD can be described as expensive.
PLD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PLD is cheaper than 64.00% of the companies in the same industry.
PLD is valuated expensively when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.49 | ||
| Fwd PE | 41.96 |
4.2 Price Multiples
90.40% of the companies in the same industry are cheaper than PLD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.69 |
4.3 Compensation for Growth
The decent profitability rating of PLD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)13.56
EPS Next 2Y-5.73%
EPS Next 3Y1.98%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.52, PLD is paying slightly less dividend.
PLD's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
On average, the dividend of PLD grows each year by 12.57%, which is quite nice.
PLD has paid a dividend for at least 10 years, which is a reliable track record.
PLD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.57%
Div Incr Years10
Div Non Decr Years14
5.3 Sustainability
104.39% of the earnings are spent on dividend by PLD. This is not a sustainable payout ratio.
PLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP104.39%
EPS Next 2Y-5.73%
EPS Next 3Y1.98%
PROLOGIS INC
NYSE:PLD (7/26/2024, 7:04:00 PM)
After market: 124.969 +2.29 (+1.87%)122.68
+2.25 (+1.87%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap113.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.49 | ||
| Fwd PE | 41.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)13.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 5.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.63% | ||
| PM (TTM) | 38.66% | ||
| GM | 74.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-20.26%
EPS 3Y17.66%
EPS 5Y
EPS Q2Q%
EPS Next Y-24.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.6%
Revenue growth 3Y21.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y