PROLOGIS INC (PLD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PLD - US74340W1036 - REIT
129.05 USD
+1.39 (+1.09%)
129.05 USD
0 (0%)
PLD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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.
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.
PLD had positive earnings in each of the past 5 years.
PLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PLD has a better Return On Assets (3.26%) than 74.80% of its industry peers.
PLD has a Return On Equity of 6.08%. This is in the better half of the industry: PLD outperforms 71.65% of its industry peers.
With a Return On Invested Capital value of 2.97%, PLD perfoms like the industry average, outperforming 57.48% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PLD is in line with the industry average of 3.06%.
The last Return On Invested Capital (2.97%) for PLD is above the 3 year average (2.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.08% | ||
| ROIC | 2.97% |
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
Looking at the Profit Margin, with a value of 36.64%, PLD belongs to the top of the industry, outperforming 90.55% 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 (39.78%) is better than 85.04% of its industry peers.
PLD's Operating Margin has improved in the last couple of years.
The Gross Margin of PLD (75.10%) is better than 73.23% 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 | 39.78% | ||
| PM (TTM) | 36.64% | ||
| GM | 75.1% |
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
PLD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PLD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PLD has more shares outstanding
PLD has a worse debt/assets ratio than last year.
2.2 Solvency
PLD has a debt to FCF ratio of 120.19. This is a negative value and a sign of low solvency as PLD would need 120.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 120.19, PLD is in the better half of the industry, outperforming 62.99% of the companies in the same industry.
PLD has a Debt/Equity ratio of 0.67. This is a neutral value indicating PLD is somewhat dependend on debt financing.
The Debt to Equity ratio of PLD (0.67) is better than 84.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 120.19 | ||
| Altman-Z | N/A |
ROIC/WACC0.4
WACC7.44%
2.3 Liquidity
PLD has a Current Ratio of 0.20. 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 0.20 is on the low side compared to the rest of the industry. PLD is outperformed by 90.55% of its industry peers.
PLD has a Quick Ratio of 0.20. 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 Quick ratio (0.20) than 89.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
PLD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.63%.
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.
Looking at the last year, PLD shows a quite strong growth in Revenue. The Revenue has grown by 10.75% in the last year.
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)3.63%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%-24.07%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%8.28%
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 3.02% on average per year.
The Revenue is expected to grow by 7.13% on average over the next years.
EPS Next Y-31.53%
EPS Next 2Y-13.05%
EPS Next 3Y-4.71%
EPS Next 5Y3.02%
Revenue Next Year9.82%
Revenue Next 2Y8.67%
Revenue Next 3Y8.25%
Revenue Next 5Y7.13%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.62, PLD can be considered very expensive at the moment.
PLD's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.60, PLD is valued a bit more expensive.
The Price/Forward Earnings ratio is 42.67, which means the current valuation is very expensive for PLD.
PLD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PLD is cheaper than 63.78% of the companies in the same industry.
PLD is valuated expensively when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.62 | ||
| Fwd PE | 42.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PLD indicates a rather expensive valuation: PLD more expensive than 88.98% of the companies listed in the same industry.
PLD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PLD is cheaper than 61.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 408.1 | ||
| EV/EBITDA | 25.29 |
4.3 Compensation for Growth
PLD has a very decent profitability rating, which may justify a higher PE ratio.
PLD's earnings are expected to decrease with -4.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.65
EPS Next 2Y-13.05%
EPS Next 3Y-4.71%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.16%. Purely for dividend investing, there may be better candidates out there.
PLD's Dividend Yield is slightly below the industry average, which is at 6.83.
PLD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
The dividend of PLD is nicely growing with an annual growth rate of 12.58%!
PLD has been paying a dividend for at least 10 years, so it has 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)12.58%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
116.06% 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.
DP116.06%
EPS Next 2Y-13.05%
EPS Next 3Y-4.71%
129.05
+1.39 (+1.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change14.11%
Market Cap119.87B
Revenue(TTM)8.74B
Net Income(TTM)3.20B
Analysts79.33
Price Target134.69 (4.37%)
Short Float %1.35%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend3.86
Dividend Growth(5Y)12.58%
DP116.06%
Div Incr Years11
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.95%
Min EPS beat(2)-4.74%
Max EPS beat(2)22.64%
EPS beat(4)3
Avg EPS beat(4)33.28%
Min EPS beat(4)-4.74%
Max EPS beat(4)111.94%
EPS beat(8)7
Avg EPS beat(8)36.01%
EPS beat(12)10
Avg EPS beat(12)29.95%
EPS beat(16)14
Avg EPS beat(16)46.94%
Revenue beat(2)0
Avg Revenue beat(2)-4.84%
Min Revenue beat(2)-5.94%
Max Revenue beat(2)-3.74%
Revenue beat(4)0
Avg Revenue beat(4)-3.74%
Min Revenue beat(4)-5.94%
Max Revenue beat(4)-1.95%
Revenue beat(8)0
Avg Revenue beat(8)-3.42%
Revenue beat(12)3
Avg Revenue beat(12)-0.22%
Revenue beat(16)7
Avg Revenue beat(16)5.57%
PT rev (1m)1.25%
PT rev (3m)9.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.62 | ||
| Fwd PE | 42.67 | ||
| P/S | 13.72 | ||
| P/FCF | 408.1 | ||
| P/OCF | 23.12 | ||
| P/B | 2.28 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 25.29 |
EPS(TTM)3.43
EY2.66%
EPS(NY)3.02
Fwd EY2.34%
FCF(TTM)0.32
FCFY0.25%
OCF(TTM)5.58
OCFY4.33%
SpS9.41
BVpS56.67
TBVpS56.67
PEG (NY)N/A
PEG (5Y)3.65
Graham Number66.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.08% | ||
| ROCE | 3.76% | ||
| ROIC | 2.97% | ||
| ROICexc | 3.01% | ||
| ROICexgc | 3.2% | ||
| OM | 39.78% | ||
| PM (TTM) | 36.64% | ||
| GM | 75.1% | ||
| FCFM | 3.36% |
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%
ROICexgc growth 3Y5.02%
ROICexgc 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 | 0.67 | ||
| Debt/FCF | 120.19 | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 187.16% | ||
| Cap/Sales | 55.98% | ||
| Interest Coverage | 4.09 | ||
| Cash Conversion | 85.15% | ||
| Profit Quality | 9.17% | ||
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z | N/A |
F-Score6
WACC7.44%
ROIC/WACC0.4
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)3.63%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%-24.07%
EPS Next Y-31.53%
EPS Next 2Y-13.05%
EPS Next 3Y-4.71%
EPS Next 5Y3.02%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%8.28%
Revenue Next Year9.82%
Revenue Next 2Y8.67%
Revenue Next 3Y8.25%
Revenue Next 5Y7.13%
EBIT growth 1Y22.93%
EBIT growth 3Y24.19%
EBIT growth 5Y25.58%
EBIT Next Year80.83%
EBIT Next 3Y27.95%
EBIT Next 5Y20.82%
FCF growth 1Y114.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7%
OCF growth 3Y17.92%
OCF growth 5Y16.76%
PROLOGIS INC / PLD FAQ
What is the fundamental rating for PLD stock?
ChartMill assigns a fundamental rating of 4 / 10 to PLD.
Can you provide the valuation status for PROLOGIS INC?
ChartMill assigns a valuation rating of 2 / 10 to PROLOGIS INC (PLD). This can be considered as Overvalued.
How profitable is PROLOGIS INC (PLD) stock?
PROLOGIS INC (PLD) has a profitability rating of 7 / 10.
What is the valuation of PROLOGIS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PROLOGIS INC (PLD) is 37.62 and the Price/Book (PB) ratio is 2.28.
How sustainable is the dividend of PROLOGIS INC (PLD) stock?
The dividend rating of PROLOGIS INC (PLD) is 5 / 10 and the dividend payout ratio is 116.06%.