PROLOGIS INC (PLD) Stock Fundamental Analysis
NYSE:PLD - New York Stock Exchange, Inc. - US74340W1036 - REIT - Currency: USD
PLD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. While PLD belongs to the best of the industry regarding profitability, 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.
Each year in the past 5 years PLD has been profitable.
Each year in the past 5 years PLD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.89%, PLD belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
PLD's Return On Equity of 6.98% is amongst the best of the industry. PLD outperforms 80.77% of its industry peers.
PLD's Return On Invested Capital of 2.75% is in line compared to the rest of the industry. PLD outperforms 50.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PLD is in line with the industry average of 3.15%.
The 3 year average ROIC (2.50%) for PLD is below the current ROIC(2.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 6.98% | ||
| ROIC | 2.75% |
ROA(3y)3.67%
ROA(5y)3.73%
ROE(3y)6.32%
ROE(5y)6.47%
ROIC(3y)2.5%
ROIC(5y)2.38%
1.3 Margins
The Profit Margin of PLD (44.52%) is better than 94.62% of its industry peers.
In the last couple of years the Profit Margin of PLD has remained more or less at the same level.
The Operating Margin of PLD (38.76%) is better than 83.85% of its industry peers.
PLD's Operating Margin has improved in the last couple of years.
PLD has a better Gross Margin (75.27%) than 73.08% of its industry peers.
In the last couple of years the Gross Margin of PLD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.76% | ||
| PM (TTM) | 44.52% | ||
| GM | 75.27% |
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.
The number of shares outstanding for PLD has been increased compared to 1 year ago.
PLD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PLD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that PLD is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.54, PLD belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that PLD is somewhat dependend on debt financing.
PLD has a better Debt to Equity ratio (0.60) than 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.54 |
ROIC/WACC0.38
WACC7.22%
2.3 Liquidity
PLD has a Current Ratio of 0.25. 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's Current ratio of 0.25 is on the low side compared to the rest of the industry. PLD is outperformed by 87.69% of its industry peers.
PLD has a Quick Ratio of 0.25. This is a bad value and indicates that PLD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PLD (0.25) is worse than 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.78% over the past year.
Measured over the past years, PLD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.30% on average per year.
The Revenue has grown by 10.20% in the past year. This is quite good.
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)21.78%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%-33.7%
Revenue 1Y (TTM)10.2%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%9.34%
3.2 Future
The Earnings Per Share is expected to grow by 2.20% on average over the next years.
PLD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.81% yearly.
EPS Next Y-35.66%
EPS Next 2Y-14.66%
EPS Next 3Y-6.47%
EPS Next 5Y2.2%
Revenue Next Year8.3%
Revenue Next 2Y7.17%
Revenue Next 3Y7.9%
Revenue Next 5Y6.81%
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 28.43.
Compared to the rest of the industry, the Price/Earnings ratio of PLD indicates a somewhat cheap valuation: PLD is cheaper than 66.92% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. PLD is around the same levels.
A Price/Forward Earnings ratio of 36.02 indicates a quite expensive valuation of PLD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLD indicates a somewhat cheap valuation: PLD is cheaper than 66.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, PLD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 36.02 |
4.2 Price Multiples
90.00% 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 | 22.06 |
4.3 Compensation for Growth
PLD has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PLD's earnings are expected to decrease with -6.47% in the coming years.
PEG (NY)N/A
PEG (5Y)2.76
EPS Next 2Y-14.66%
EPS Next 3Y-6.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.78%, PLD has a reasonable but not impressive dividend return.
PLD's Dividend Yield is slightly below the industry average, which is at 6.55.
PLD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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 Years11
Div Non Decr Years15
5.3 Sustainability
PLD pays out 96.94% of its income as dividend. 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.
DP96.94%
EPS Next 2Y-14.66%
EPS Next 3Y-6.47%
104.91
-1.87 (-1.75%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change0.04%
Ins Owners0.24%
Ins Owner Change2.13%
Market Cap97.35B
Analysts75.71
Price Target121.04 (15.38%)
Short Float %1.16%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend3.86
Dividend Growth(5Y)12.58%
DP96.94%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)57.61%
Min EPS beat(2)3.27%
Max EPS beat(2)111.94%
EPS beat(4)4
Avg EPS beat(4)59.31%
Min EPS beat(4)3.27%
Max EPS beat(4)111.94%
EPS beat(8)8
Avg EPS beat(8)42.12%
EPS beat(12)11
Avg EPS beat(12)31.89%
EPS beat(16)15
Avg EPS beat(16)56.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.65%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-3.5%
Max Revenue beat(4)-1.95%
Revenue beat(8)1
Avg Revenue beat(8)-2.35%
Revenue beat(12)5
Avg Revenue beat(12)5.74%
Revenue beat(16)9
Avg Revenue beat(16)7.74%
PT rev (1m)0.99%
PT rev (3m)-2.33%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-5.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)-1.24%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 36.02 | ||
| P/S | 11.61 | ||
| P/FCF | N/A | ||
| P/OCF | 19.4 | ||
| P/B | 1.82 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 22.06 |
EPS(TTM)3.69
EY3.52%
EPS(NY)2.91
Fwd EY2.78%
FCF(TTM)-1.74
FCFYN/A
OCF(TTM)5.41
OCFY5.15%
SpS9.04
BVpS57.62
TBVpS57.62
PEG (NY)N/A
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 6.98% | ||
| ROCE | 3.48% | ||
| ROIC | 2.75% | ||
| ROICexc | 2.77% | ||
| ROICexgc | 2.91% | ||
| OM | 38.76% | ||
| PM (TTM) | 44.52% | ||
| GM | 75.27% | ||
| FCFM | N/A |
ROA(3y)3.67%
ROA(5y)3.73%
ROE(3y)6.32%
ROE(5y)6.47%
ROIC(3y)2.5%
ROIC(5y)2.38%
ROICexc(3y)2.52%
ROICexc(5y)2.4%
ROICexgc(3y)2.61%
ROICexgc(5y)2.49%
ROCE(3y)3.16%
ROCE(5y)3.01%
ROICexcg growth 3Y5.02%
ROICexcg growth 5Y4.99%
ROICexc growth 3Y4.96%
ROICexc growth 5Y4.9%
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-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.44 | ||
| Cap/Depr | 255.65% | ||
| Cap/Sales | 79.13% | ||
| Interest Coverage | 4.22 | ||
| Cash Conversion | 85.85% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 1.54 |
F-Score6
WACC7.22%
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)21.78%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%-33.7%
EPS Next Y-35.66%
EPS Next 2Y-14.66%
EPS Next 3Y-6.47%
EPS Next 5Y2.2%
Revenue 1Y (TTM)10.2%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%9.34%
Revenue Next Year8.3%
Revenue Next 2Y7.17%
Revenue Next 3Y7.9%
Revenue Next 5Y6.81%
EBIT growth 1Y2.45%
EBIT growth 3Y24.19%
EBIT growth 5Y25.58%
EBIT Next Year78.02%
EBIT Next 3Y26.6%
EBIT Next 5Y24.41%
FCF growth 1Y-22.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.05%
OCF growth 3Y17.92%
OCF growth 5Y16.76%