PROLOGIS INC (PLD)

US74340W1036 - REIT

133.44  +0.02 (+0.01%)

After market: 133.44 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to PLD. PLD was compared to 128 industry peers in the Diversified REITs industry. While PLD has a great profitability rating, there are quite some 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

In the past year PLD was profitable.
In the past year PLD had a positive cash flow from operations.
In the past 5 years PLD has always been profitable.
Of the past 5 years PLD 4 years had a positive operating cash flow.

1.2 Ratios

PLD's Return On Assets of 3.27% is amongst the best of the industry. PLD outperforms 81.45% of its industry peers.
Looking at the Return On Equity, with a value of 5.61%, PLD is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
PLD has a Return On Invested Capital (2.66%) which is comparable to the rest of the industry.
PLD had an Average Return On Invested Capital over the past 3 years of 2.41%. This is in line with the industry average of 2.99%.
The last Return On Invested Capital (2.66%) for PLD is above the 3 year average (2.41%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.27%
ROE 5.61%
ROIC 2.66%
ROA(3y)4.04%
ROA(5y)3.73%
ROE(3y)6.94%
ROE(5y)6.47%
ROIC(3y)2.41%
ROIC(5y)2.27%

1.3 Margins

The Profit Margin of PLD (38.17%) is better than 89.52% of its industry peers.
In the last couple of years the Profit Margin of PLD has declined.
With an excellent Operating Margin value of 38.60%, PLD belongs to the best of the industry, outperforming 83.06% of the companies in the same industry.
PLD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 75.12%, PLD is in the better half of the industry, outperforming 70.16% of the companies in the same industry.
PLD's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 38.6%
PM (TTM) 38.17%
GM 75.12%
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

PLD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for PLD is higher compared to a year ago.

2.2 Solvency

PLD has an Altman-Z score of 2.11. This is not the best score and indicates that PLD is in the grey zone with still only limited risk for bankruptcy at the moment.
PLD has a better Altman-Z score (2.11) than 94.35% of its industry peers.
PLD has a Debt/Equity ratio of 0.51. This is a neutral value indicating PLD is somewhat dependend on debt financing.
PLD's Debt to Equity ratio of 0.51 is amongst the best of the industry. PLD outperforms 87.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Altman-Z 2.11
ROIC/WACC0.34
WACC7.75%

2.3 Liquidity

PLD has a Current Ratio of 0.43. 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 Current ratio of PLD (0.43) is worse than 86.29% of its industry peers.
PLD has a Quick Ratio of 0.43. This is a bad value and indicates that PLD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.43, PLD is not doing good in the industry: 86.29% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.43
Quick Ratio 0.43

6

3. Growth

3.1 Past

PLD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.89%.
The Earnings Per Share has been growing slightly by 2.99% on average over the past years.
PLD shows a strong growth in Revenue. In the last year, the Revenue has grown by 43.40%.
Measured over the past years, PLD shows a very strong growth in Revenue. The Revenue has been growing by 23.40% on average per year.
EPS 1Y (TTM)-39.89%
EPS 3Y17.66%
EPS 5Y2.99%
EPS growth Q2Q-41.18%
Revenue 1Y (TTM)43.4%
Revenue growth 3Y21.82%
Revenue growth 5Y23.4%
Revenue growth Q2Q9.36%

3.2 Future

Based on estimates for the next years, PLD will show a small growth in Earnings Per Share. The EPS will grow by 4.19% on average per year.
PLD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.41% yearly.
EPS Next Y-19.45%
EPS Next 2Y-1.12%
EPS Next 3Y6.7%
EPS Next 5Y4.19%
Revenue Next Year11.78%
Revenue Next 2Y10.77%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 41.19, which means the current valuation is very expensive for PLD.
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 26.00, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 50.35 indicates a quite expensive valuation of PLD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLD is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, PLD is valued quite expensively.
Industry RankSector Rank
PE 41.19
Fwd PE 50.35

4.2 Price Multiples

90.32% 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 27.28

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)13.8
EPS Next 2Y-1.12%
EPS Next 3Y6.7%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.61%, PLD has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.61, PLD pays less dividend than the industry average, which is at 5.87. 80.65% of the companies listed in the same industry pay a better dividend than PLD!
PLD's Dividend Yield is comparable with the S&P500 average which is at 2.48.
Industry RankSector Rank
Dividend Yield 2.61%

5.2 History

On average, the dividend of PLD grows each year by 11.04%, 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)11.04%
Div Incr Years9
Div Non Decr Years13

5.3 Sustainability

104.72% 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.
DP104.72%
EPS Next 2Y-1.12%
EPS Next 3Y6.7%

PROLOGIS INC

NYSE:PLD (2/22/2024, 3:47:55 PM)

After market: 133.44 0 (0%)

133.44

+0.02 (+0.01%)

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 Cap123.29B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.61%
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)
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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)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 41.19
Fwd PE 50.35
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)13.8
Profitability
Industry RankSector Rank
ROA 3.27%
ROE 5.61%
ROCE
ROIC
ROICexc
ROICexgc
OM 38.6%
PM (TTM) 38.17%
GM 75.12%
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 0.51
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.43
Quick Ratio 0.43
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)-39.89%
EPS 3Y17.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y-19.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)43.4%
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