PROLOGIS INC (PLD)

US74340W1036 - REIT

130.22  +1.36 (+1.06%)

After market: 130.22 0 (0%)

Fundamental Rating

4

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 quite expensive at the moment. It does show a decent growth rate.



7

1. Profitability

1.1 Basic Checks

PLD had positive earnings in the past year.
PLD had a positive operating cash flow in the past year.
In the past 5 years PLD has always been profitable.
Each year in the past 5 years PLD had a positive operating cash flow.

1.2 Ratios

With a decent Return On Assets value of 3.28%, PLD is doing good in the industry, outperforming 79.03% of the companies in the same industry.
PLD's Return On Equity of 5.74% is fine compared to the rest of the industry. PLD outperforms 75.00% of its industry peers.
PLD has a Return On Invested Capital of 2.67%. This is comparable to the rest of the industry: PLD outperforms 51.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PLD is in line with the industry average of 2.93%.
The 3 year average ROIC (2.38%) for PLD is below the current ROIC(2.67%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.28%
ROE 5.74%
ROIC 2.67%
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's Profit Margin of 38.06% is amongst the best of the industry. PLD outperforms 87.90% of its industry peers.
PLD's Profit Margin has declined in the last couple of years.
PLD's Operating Margin of 38.44% is amongst the best of the industry. PLD outperforms 84.68% of its industry peers.
In the last couple of years the Operating Margin of PLD has grown nicely.
With a decent Gross Margin value of 74.94%, PLD is doing good in the industry, outperforming 70.16% of the companies in the same industry.
In the last couple of years the Gross Margin of PLD has remained more or less at the same level.
Industry RankSector Rank
OM 38.44%
PM (TTM) 38.06%
GM 74.94%
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

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PLD is destroying value.
PLD has about the same amout of shares outstanding than it did 1 year ago.
PLD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PLD has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 1.98 indicates that PLD is not a great score, but indicates only limited risk for bankruptcy at the moment.
PLD has a better Altman-Z score (1.98) than 93.55% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that PLD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, PLD belongs to the top of the industry, outperforming 86.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF N/A
Altman-Z 1.98
ROIC/WACC0.36
WACC7.49%

2.3 Liquidity

PLD has a Current Ratio of 0.30. 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 (0.30) than 93.55% of its industry peers.
A Quick Ratio of 0.30 indicates that PLD may have some problems paying its short term obligations.
PLD's Quick ratio of 0.30 is on the low side compared to the rest of the industry. PLD is outperformed by 92.74% of its industry peers.
Industry RankSector Rank
Current Ratio 0.3
Quick Ratio 0.3

6

3. Growth

3.1 Past

PLD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.37%.
The Earnings Per Share has been growing slightly by 2.99% on average over the past years.
Looking at the last year, PLD shows a very strong growth in Revenue. The Revenue has grown by 34.31%.
PLD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.40% yearly.
EPS 1Y (TTM)-24.37%
EPS 3Y17.66%
EPS 5Y2.99%
EPS growth Q2Q7.94%
Revenue 1Y (TTM)34.31%
Revenue growth 3Y21.82%
Revenue growth 5Y23.4%
Revenue growth Q2Q7.86%

3.2 Future

PLD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.19% yearly.
The Revenue is expected to grow by 11.41% on average over the next years. This is quite good.
EPS Next Y-21.46%
EPS Next 2Y-2.47%
EPS Next 3Y3.13%
EPS Next 5Y4.19%
Revenue Next Year11.62%
Revenue Next 2Y10.38%
Revenue Next 3Y12.23%
Revenue Next 5Y11.41%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 39.58, the valuation of PLD can be described as expensive.
PLD's Price/Earnings ratio is in line with the industry average.
PLD is valuated rather expensively when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 50.40, PLD can be considered very expensive at the moment.
PLD's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PLD to the average of the S&P500 Index (22.79), we can say PLD is valued expensively.
Industry RankSector Rank
PE 39.58
Fwd PE 50.4

4.2 Price Multiples

91.13% of the companies in the same industry are cheaper than PLD, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 26.74

4.3 Compensation for Growth

PLD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)13.26
EPS Next 2Y-2.47%
EPS Next 3Y3.13%

5

5. Dividend

5.1 Amount

PLD has a Yearly Dividend Yield of 2.96%.
Compared to an average industry Dividend Yield of 5.72, PLD is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, PLD pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.96%

5.2 History

The dividend of PLD is nicely growing with an annual growth rate of 12.57%!
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)12.57%
Div Incr Years10
Div Non Decr Years14

5.3 Sustainability

105.73% 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.
DP105.73%
EPS Next 2Y-2.47%
EPS Next 3Y3.13%

PROLOGIS INC

NYSE:PLD (3/28/2024, 8:04:00 PM)

After market: 130.22 0 (0%)

130.22

+1.36 (+1.06%)

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 Cap120.44B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.96%
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 RankSector Rank
PE 39.58
Fwd PE 50.4
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)13.26
Profitability
Industry RankSector Rank
ROA 3.28%
ROE 5.74%
ROCE
ROIC
ROICexc
ROICexgc
OM 38.44%
PM (TTM) 38.06%
GM 74.94%
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 RankSector Rank
Debt/Equity 0.55
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.3
Quick Ratio 0.3
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)
Growth
EPS 1Y (TTM)-24.37%
EPS 3Y17.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y-21.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)34.31%
Revenue growth 3Y21.82%
Revenue growth 5Y
Revenue growth 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