TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
NYSE:TRNO - New York Stock Exchange, Inc. - US88146M1018 - REIT - Currency: USD
TRNO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. TRNO has an excellent profitability rating, but 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
TRNO had positive earnings in the past year.
In the past year TRNO had a positive cash flow from operations.
In the past 5 years TRNO has always been profitable.
Each year in the past 5 years TRNO had a positive operating cash flow.
1.2 Ratios
TRNO has a better Return On Assets (3.99%) than 89.15% of its industry peers.
TRNO has a Return On Equity of 5.02%. This is in the better half of the industry: TRNO outperforms 68.99% of its industry peers.
With a Return On Invested Capital value of 2.63%, TRNO perfoms like the industry average, outperforming 47.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRNO is in line with the industry average of 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 5.02% | ||
| ROIC | 2.63% |
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
TRNO's Profit Margin of 47.97% is amongst the best of the industry. TRNO outperforms 96.12% of its industry peers.
In the last couple of years the Profit Margin of TRNO has grown nicely.
TRNO has a Operating Margin of 38.80%. This is amongst the best in the industry. TRNO outperforms 84.50% of its industry peers.
TRNO's Operating Margin has improved in the last couple of years.
TRNO has a better Gross Margin (74.03%) than 69.77% 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 | 38.8% | ||
| PM (TTM) | 47.97% | ||
| GM | 74.03% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRNO is destroying value.
TRNO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRNO has more shares outstanding
Compared to 1 year ago, TRNO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.67 indicates that TRNO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.67, TRNO belongs to the top of the industry, outperforming 99.22% of the companies in the same industry.
TRNO has a debt to FCF ratio of 11.17. This is a negative value and a sign of low solvency as TRNO would need 11.17 years to pay back of all of its debts.
The Debt to FCF ratio of TRNO (11.17) is better than 89.92% of its industry peers.
TRNO has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
TRNO has a Debt to Equity ratio of 0.19. This is amongst the best in the industry. TRNO outperforms 98.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 11.17 | ||
| Altman-Z | 3.67 |
ROIC/WACC0.32
WACC8.3%
2.3 Liquidity
TRNO has a Current Ratio of 0.99. 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 Current ratio (0.99) which is in line with its industry peers.
A Quick Ratio of 0.99 indicates that TRNO may have some problems paying its short term obligations.
TRNO has a Quick ratio (0.99) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.19% 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.
TRNO shows a strong growth in Revenue. In the last year, 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)4.19%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%17.5%
Revenue 1Y (TTM)22.17%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%29.86%
3.2 Future
Based on estimates for the next years, TRNO will show a small growth in Earnings Per Share. The EPS will grow by 5.02% on average per year.
The Revenue is expected to grow by 15.09% on average over the next years. This is quite good.
EPS Next Y-16.99%
EPS Next 2Y-5.81%
EPS Next 3Y5.02%
EPS Next 5YN/A
Revenue Next Year17.68%
Revenue Next 2Y15.16%
Revenue Next 3Y16.49%
Revenue Next 5Y15.09%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TRNO is valuated quite expensively with a Price/Earnings ratio of 28.27.
67.44% of the companies in the same industry are more expensive than TRNO, based on the Price/Earnings ratio.
TRNO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 33.03, TRNO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRNO indicates a somewhat cheap valuation: TRNO is cheaper than 72.09% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TRNO to the average of the S&P500 Index (22.20), we can say TRNO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.27 | ||
| Fwd PE | 33.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRNO indicates a rather expensive valuation: TRNO more expensive than 92.25% of the companies listed in the same industry.
TRNO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.48 | ||
| EV/EBITDA | 24.78 |
4.3 Compensation for Growth
TRNO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.6
EPS Next 2Y-5.81%
EPS Next 3Y5.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.52%, TRNO has a reasonable but not impressive dividend return.
TRNO's Dividend Yield is slightly below the industry average, which is at 6.93.
TRNO's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
On average, the dividend of TRNO grows each year by 13.58%, which is quite nice.
TRNO has been paying a dividend for at least 10 years, so it has a reliable track record.
TRNO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.58%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
94.41% of the earnings are spent on dividend by TRNO. This is not a sustainable payout ratio.
TRNO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP94.41%
EPS Next 2Y-5.81%
EPS Next 3Y5.02%
56.26
+1.11 (+2.01%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners118.73%
Inst Owner Change-1.75%
Ins Owners1.9%
Ins Owner Change-0.42%
Market Cap5.81B
Analysts73.33
Price Target67.26 (19.55%)
Short Float %6.45%
Short Ratio6.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend1.87
Dividend Growth(5Y)13.58%
DP94.41%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)69.65%
Min EPS beat(2)29.8%
Max EPS beat(2)109.51%
EPS beat(4)3
Avg EPS beat(4)35.45%
Min EPS beat(4)-0.16%
Max EPS beat(4)109.51%
EPS beat(8)7
Avg EPS beat(8)36.38%
EPS beat(12)11
Avg EPS beat(12)68%
EPS beat(16)14
Avg EPS beat(16)57.21%
Revenue beat(2)0
Avg Revenue beat(2)-0.22%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)0.88%
Min Revenue beat(4)-0.44%
Max Revenue beat(4)4.04%
Revenue beat(8)2
Avg Revenue beat(8)-0.07%
Revenue beat(12)4
Avg Revenue beat(12)0.17%
Revenue beat(16)6
Avg Revenue beat(16)0.44%
PT rev (1m)-5.64%
PT rev (3m)-3.86%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)0.45%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.27 | ||
| Fwd PE | 33.03 | ||
| P/S | 14.25 | ||
| P/FCF | 87.48 | ||
| P/OCF | 23.53 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 24.78 |
EPS(TTM)1.99
EY3.54%
EPS(NY)1.7
Fwd EY3.03%
FCF(TTM)0.64
FCFY1.14%
OCF(TTM)2.39
OCFY4.25%
SpS3.95
BVpS37.7
TBVpS37.7
PEG (NY)N/A
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 5.02% | ||
| ROCE | 3.33% | ||
| ROIC | 2.63% | ||
| ROICexc | 2.72% | ||
| ROICexgc | 2.78% | ||
| OM | 38.8% | ||
| PM (TTM) | 47.97% | ||
| GM | 74.03% | ||
| FCFM | 16.29% |
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-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 11.17 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 180.81% | ||
| Cap/Sales | 44.27% | ||
| Interest Coverage | 8.87 | ||
| Cash Conversion | 95.68% | ||
| Profit Quality | 33.95% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.67 |
F-Score6
WACC8.3%
ROIC/WACC0.32
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)4.19%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%17.5%
EPS Next Y-16.99%
EPS Next 2Y-5.81%
EPS Next 3Y5.02%
EPS Next 5YN/A
Revenue 1Y (TTM)22.17%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%29.86%
Revenue Next Year17.68%
Revenue Next 2Y15.16%
Revenue Next 3Y16.49%
Revenue Next 5Y15.09%
EBIT growth 1Y15.36%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year99.44%
EBIT Next 3Y38.94%
EBIT Next 5Y30.17%
FCF growth 1Y-1.99%
FCF growth 3Y-4.92%
FCF growth 5Y11.51%
OCF growth 1Y60.43%
OCF growth 3Y20.74%
OCF growth 5Y19.7%