TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
USA - NYSE:TRNO - US88146M1018 - REIT
59.5 USD
+2.17 (+3.79%)
59.5 USD
0 (0%)
Taking everything into account, TRNO scores 5 out of 10 in our fundamental rating. TRNO was compared to 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TRNO was profitable.
In the past year TRNO had a positive cash flow from operations.
TRNO had positive earnings in each of the past 5 years.
Each year in the past 5 years TRNO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.08%, TRNO belongs to the best 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 3.01%.
| 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
Looking at the Profit Margin, with a value of 59.40%, TRNO belongs to the top of the industry, outperforming 98.45% of the companies in the same industry.
TRNO's Profit Margin has improved in the last couple of years.
TRNO has a better Operating Margin (38.82%) than 83.72% of its industry peers.
TRNO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 74.15%, TRNO is in the better half of the industry, outperforming 68.99% of the companies in the same industry.
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.
Compared to 1 year ago, TRNO has more shares outstanding
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
TRNO has an Altman-Z score of 3.77. This indicates that TRNO is financially healthy and has little risk of bankruptcy at the moment.
TRNO's Altman-Z score of 3.77 is amongst the best of the industry. TRNO outperforms 99.22% of its industry peers.
The Debt to FCF ratio of TRNO is 8.51, which is on the high side as it means it would take TRNO, 8.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TRNO (8.51) is better than 92.25% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that TRNO is not too dependend on debt financing.
TRNO's Debt to Equity ratio of 0.19 is amongst the best of the industry. TRNO outperforms 98.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.34
WACC7.91%
2.3 Liquidity
TRNO has a Current 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 worse Current ratio (0.78) than 60.47% 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.
With a Quick ratio value of 0.78, TRNO perfoms like the industry average, outperforming 40.31% of the companies in the same 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.
TRNO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.70% yearly.
Looking at the last year, TRNO shows a very strong growth in Revenue. The Revenue has grown by 22.17%.
The Revenue has been growing by 17.48% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 18.00% on average over the next years. This is quite good.
EPS Next Y-0.83%
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
EPS Next 5YN/A
Revenue Next Year19.7%
Revenue Next 2Y15.21%
Revenue Next 3Y13.7%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.61, the valuation of TRNO can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TRNO indicates a somewhat cheap valuation: TRNO is cheaper than 78.29% of the companies listed in the same industry.
TRNO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 38.46 indicates a quite expensive valuation of TRNO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRNO indicates a somewhat cheap valuation: TRNO is cheaper than 65.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.04, TRNO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.61 | ||
| Fwd PE | 38.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRNO is valued expensively inside the industry as 90.70% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRNO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.46 | ||
| EV/EBITDA | 25.01 |
4.3 Compensation for Growth
The decent profitability rating of TRNO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 3.61%. Purely for dividend investing, there may be better candidates out there.
TRNO's Dividend Yield is slightly below the industry average, which is at 7.00.
Compared to an average S&P500 Dividend Yield of 2.40, TRNO pays a better dividend.
| 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
75.83% of the earnings are spent on dividend by TRNO. 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-10.24%
EPS Next 3Y-1.3%
59.5
+2.17 (+3.79%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners110.79%
Inst Owner Change-0.01%
Ins Owners1.93%
Ins Owner Change3.27%
Market Cap6.15B
Analysts74.78
Price Target63.62 (6.92%)
Short Float %5.84%
Short Ratio7.86
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)0%
PT rev (3m)-2.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.24%
EPS NY rev (1m)-1.75%
EPS NY rev (3m)17.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.61 | ||
| Fwd PE | 38.46 | ||
| P/S | 14.43 | ||
| P/FCF | 70.46 | ||
| P/OCF | 25.25 | ||
| P/B | 1.56 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 25.01 |
EPS(TTM)2.52
EY4.24%
EPS(NY)1.55
Fwd EY2.6%
FCF(TTM)0.84
FCFY1.42%
OCF(TTM)2.36
OCFY3.96%
SpS4.12
BVpS38.17
TBVpS38.17
PEG (NY)N/A
PEG (5Y)1.33
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 | 3.77 |
F-Score5
WACC7.91%
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 Y-0.83%
EPS Next 2Y-10.24%
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 Year19.7%
Revenue Next 2Y15.21%
Revenue Next 3Y13.7%
Revenue Next 5Y18%
EBIT growth 1Y17.09%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year100.2%
EBIT Next 3Y37.86%
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%