TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
NYSE:TRNO - US88146M1018 - REIT
57.77 USD
+0.16 (+0.28%)
57.77 USD
0 (0%)
Overall TRNO gets a fundamental rating of 6 out of 10. We evaluated TRNO against 129 industry peers in the Diversified REITs industry. While TRNO has a great profitability rating, there are some minor concerns on its financial health. TRNO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TRNO was profitable.
TRNO had a positive operating cash flow in the past year.
Each year in the past 5 years TRNO has been profitable.
TRNO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.08%, TRNO belongs to the top of the industry, outperforming 94.57% of the companies in the same industry.
With a decent Return On Equity value of 6.42%, TRNO is doing good in the industry, outperforming 75.19% of the companies in the same industry.
TRNO has a Return On Invested Capital (2.71%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRNO is in line with the industry average of 3.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 6.42% | ||
| ROIC | 2.71% |
ROA(3y)4.65%
ROA(5y)4.12%
ROE(3y)6.34%
ROE(5y)5.65%
ROIC(3y)2.73%
ROIC(5y)2.65%
1.3 Margins
The Profit Margin of TRNO (59.40%) is better than 98.45% of its industry peers.
In the last couple of years the Profit Margin of TRNO has grown nicely.
TRNO's Operating Margin of 38.82% is amongst the best of the industry. TRNO outperforms 83.72% of its industry peers.
TRNO's Operating Margin has improved in the last couple of years.
TRNO has a better Gross Margin (74.15%) than 68.99% of its industry peers.
In the last couple of years the Gross Margin of TRNO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.82% | ||
| PM (TTM) | 59.4% | ||
| GM | 74.15% |
OM growth 3Y-0.86%
OM growth 5Y2.39%
PM growth 3Y7.03%
PM growth 5Y8.26%
GM growth 3Y-0.14%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
TRNO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TRNO has been increased compared to 1 year ago.
TRNO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TRNO has been reduced compared to a year ago.
2.2 Solvency
TRNO has an Altman-Z score of 3.66. This indicates that TRNO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TRNO (3.66) is better than 99.22% of its industry peers.
TRNO has a debt to FCF ratio of 8.51. This is a slightly negative value and a sign of low solvency as TRNO would need 8.51 years to pay back of all of its debts.
TRNO's Debt to FCF ratio of 8.51 is amongst the best of the industry. TRNO outperforms 92.25% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that TRNO is not too dependend on debt financing.
The Debt to Equity ratio of TRNO (0.19) is better than 98.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 3.66 |
ROIC/WACC0.34
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.78 indicates that TRNO may have some problems paying its short term obligations.
TRNO's Current ratio of 0.78 is in line compared to the rest of the industry. TRNO outperforms 43.41% of its industry peers.
TRNO has a Quick Ratio of 0.78. This is a bad value and indicates that TRNO is not financially healthy enough and could expect problems in meeting its short term obligations.
TRNO has a Quick ratio (0.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.00% over the past year.
Measured over the past years, TRNO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.70% on average per year.
Looking at the last year, TRNO shows a very strong growth in Revenue. The Revenue has grown by 22.17%.
TRNO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.48% yearly.
EPS 1Y (TTM)40%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%143.24%
Revenue 1Y (TTM)22.17%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%19.08%
3.2 Future
The Earnings Per Share is expected to decrease by -1.30% on average over the next years.
Based on estimates for the next years, TRNO will show a quite strong growth in Revenue. The Revenue will grow by 18.00% on average per year.
EPS Next Y0.94%
EPS Next 2Y-6.23%
EPS Next 3Y-1.3%
EPS Next 5YN/A
Revenue Next Year19.47%
Revenue Next 2Y14.88%
Revenue Next 3Y14.95%
Revenue Next 5Y18%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.92, which indicates a rather expensive current valuation of TRNO.
Based on the Price/Earnings ratio, TRNO is valued cheaper than 80.62% of the companies in the same industry.
TRNO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 34.22, the valuation of TRNO can be described as expensive.
Based on the Price/Forward Earnings ratio, TRNO is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, TRNO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 34.22 |
4.2 Price Multiples
90.70% of the companies in the same industry are cheaper than TRNO, based on the Enterprise Value to EBITDA ratio.
TRNO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.42 | ||
| EV/EBITDA | 24.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRNO does not grow enough to justify the current Price/Earnings ratio.
TRNO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)24.45
PEG (5Y)1.3
EPS Next 2Y-6.23%
EPS Next 3Y-1.3%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 3.61%.
Compared to an average industry Dividend Yield of 6.16, TRNO is paying slightly less dividend.
TRNO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
On average, the dividend of TRNO grows each year by 13.58%, which is quite nice.
TRNO has paid a dividend for at least 10 years, which is a reliable track record.
TRNO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.58%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
TRNO pays out 75.83% of its income as dividend. This is not a sustainable payout ratio.
TRNO's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP75.83%
EPS Next 2Y-6.23%
EPS Next 3Y-1.3%
57.77
+0.16 (+0.28%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners111.37%
Inst Owner Change-3.32%
Ins Owners1.88%
Ins Owner Change3.27%
Market Cap5.97B
Analysts73.91
Price Target63.62 (10.13%)
Short Float %5.25%
Short Ratio5.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.87
Dividend Growth(5Y)13.58%
DP75.83%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)83.07%
Min EPS beat(2)29.8%
Max EPS beat(2)136.35%
EPS beat(4)3
Avg EPS beat(4)68.87%
Min EPS beat(4)-0.16%
Max EPS beat(4)136.35%
EPS beat(8)7
Avg EPS beat(8)47.15%
EPS beat(12)11
Avg EPS beat(12)49.44%
EPS beat(16)14
Avg EPS beat(16)65.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-0.33%
Revenue beat(12)4
Avg Revenue beat(12)0.06%
Revenue beat(16)5
Avg Revenue beat(16)0.1%
PT rev (1m)-2.54%
PT rev (3m)-5.41%
EPS NQ rev (1m)1.32%
EPS NQ rev (3m)1.32%
EPS NY rev (1m)21.28%
EPS NY rev (3m)21.6%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 34.22 | ||
| P/S | 14.01 | ||
| P/FCF | 68.42 | ||
| P/OCF | 24.52 | ||
| P/B | 1.51 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 24.29 |
EPS(TTM)2.52
EY4.36%
EPS(NY)1.69
Fwd EY2.92%
FCF(TTM)0.84
FCFY1.46%
OCF(TTM)2.36
OCFY4.08%
SpS4.12
BVpS38.17
TBVpS38.17
PEG (NY)24.45
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 6.42% | ||
| ROCE | 3.43% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.79% | ||
| ROICexgc | 2.85% | ||
| OM | 38.82% | ||
| PM (TTM) | 59.4% | ||
| GM | 74.15% | ||
| FCFM | 20.48% |
ROA(3y)4.65%
ROA(5y)4.12%
ROE(3y)6.34%
ROE(5y)5.65%
ROIC(3y)2.73%
ROIC(5y)2.65%
ROICexc(3y)2.78%
ROICexc(5y)2.75%
ROICexgc(3y)2.84%
ROICexgc(5y)2.81%
ROCE(3y)3.45%
ROCE(5y)3.35%
ROICexcg growth 3Y-1.28%
ROICexcg growth 5Y1.14%
ROICexc growth 3Y-1.28%
ROICexc growth 5Y1.26%
OM growth 3Y-0.86%
OM growth 5Y2.39%
PM growth 3Y7.03%
PM growth 5Y8.26%
GM growth 3Y-0.14%
GM growth 5Y0.06%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 8.51 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 148.84% | ||
| Cap/Sales | 36.66% | ||
| Interest Coverage | 9.12 | ||
| Cash Conversion | 90.05% | ||
| Profit Quality | 34.47% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.66 |
F-Score5
WACC8.07%
ROIC/WACC0.34
Cap/Depr(3y)188.52%
Cap/Depr(5y)155.5%
Cap/Sales(3y)44.39%
Cap/Sales(5y)36.62%
Profit Quality(3y)20.15%
Profit Quality(5y)43.35%
High Growth Momentum
Growth
EPS 1Y (TTM)40%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%143.24%
EPS Next Y0.94%
EPS Next 2Y-6.23%
EPS Next 3Y-1.3%
EPS Next 5YN/A
Revenue 1Y (TTM)22.17%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%19.08%
Revenue Next Year19.47%
Revenue Next 2Y14.88%
Revenue Next 3Y14.95%
Revenue Next 5Y18%
EBIT growth 1Y17.09%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year99.84%
EBIT Next 3Y38.14%
EBIT Next 5Y31.03%
FCF growth 1Y22.78%
FCF growth 3Y-4.92%
FCF growth 5Y11.51%
OCF growth 1Y45.41%
OCF growth 3Y20.74%
OCF growth 5Y19.7%