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. While PLD has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, PLD is valued expensive at the moment.
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
PLD's Return On Assets of 3.91% is amongst the best of 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 in line with its industry peers.
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
With an excellent Profit Margin value of 45.43%, PLD belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
PLD's Profit Margin has been stable in the last couple of years.
The Operating Margin of PLD (37.77%) is better than 83.08% of its industry peers.
In the last couple of years the Operating Margin of PLD has grown nicely.
The Gross Margin of PLD (74.92%) is better 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
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.
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
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 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.37
WACC7.31%
2.3 Liquidity
PLD has a Current 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 Current ratio, with a value of 0.23, PLD is doing worse than 90.77% of the companies in the same industry.
A Quick Ratio of 0.23 indicates that PLD may have some problems paying 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
The Earnings Per Share has grown by an nice 16.96% over the past year.
PLD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.30% yearly.
The Revenue has been growing slightly by 2.11% in the past year.
PLD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.75% yearly.
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
PLD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.75% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 26.35.
Compared to the rest of the industry, the Price/Earnings ratio of PLD is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.22. PLD is around the same levels.
A Price/Forward Earnings ratio of 35.48 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 67.69% of the companies listed in the same industry.
PLD is valuated expensively when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.35 | ||
| Fwd PE | 35.48 |
4.2 Price Multiples
89.23% 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 | 22.43 |
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 -5.92% in the coming years.
PEG (NY)N/A
PEG (5Y)2.56
EPS Next 2Y-13.82%
EPS Next 3Y-5.92%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.92%.
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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
5.2 History
The dividend of PLD is nicely growing with an annual growth rate of 12.58%!
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
PLD pays out 95.83% 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.
DP95.83%
EPS Next 2Y-13.82%
EPS Next 3Y-5.92%
105.41
+2.33 (+2.26%)
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 Change0.16%
Ins Owners0.25%
Ins Owner Change1.37%
Market Cap97.81B
Analysts75.71
Price Target123.93 (17.57%)
Short Float %1.26%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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)-6.39%
PT rev (3m)-5.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.25%
EPS NY rev (1m)-2.58%
EPS NY rev (3m)-10.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.35 | ||
| Fwd PE | 35.48 | ||
| P/S | 11.93 | ||
| P/FCF | N/A | ||
| P/OCF | 19.91 | ||
| P/B | 1.81 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 22.43 |
EPS(TTM)4
EY3.79%
EPS(NY)2.97
Fwd EY2.82%
FCF(TTM)-1.09
FCFYN/A
OCF(TTM)5.29
OCFY5.02%
SpS8.84
BVpS58.14
TBVpS58.14
PEG (NY)N/A
PEG (5Y)2.56
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
WACC7.31%
ROIC/WACC0.37
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%