TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
NYSE:TRNO - New York Stock Exchange, Inc. - US88146M1018 - REIT - Currency: USD
TRNO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. While TRNO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, TRNO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TRNO had positive earnings in the past year.
TRNO had a positive operating cash flow in the past year.
In the past 5 years TRNO has always been profitable.
In the past 5 years TRNO always reported a positive cash flow from operatings.
1.2 Ratios
TRNO's Return On Assets of 3.99% is amongst the best of the industry. TRNO outperforms 88.46% of its industry peers.
Looking at the Return On Equity, with a value of 5.02%, TRNO is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
TRNO has a Return On Invested Capital of 2.63%. This is comparable to the rest of the industry: TRNO outperforms 47.69% of 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 3.15%.
| 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
Looking at the Profit Margin, with a value of 47.97%, TRNO belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
In the last couple of years the Profit Margin of TRNO has grown nicely.
TRNO has a better Operating Margin (38.80%) than 84.62% of its industry peers.
In the last couple of years the Operating Margin of TRNO has grown nicely.
With a decent Gross Margin value of 74.03%, TRNO is doing good in the industry, outperforming 69.23% 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 | 38.8% | ||
| 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
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
The number of shares outstanding for TRNO has been increased compared to 5 years ago.
Compared to 1 year ago, TRNO has an improved debt to assets ratio.
2.2 Solvency
TRNO has an Altman-Z score of 3.57. This indicates that TRNO is financially healthy and has little risk of bankruptcy at the moment.
TRNO has a Altman-Z score of 3.57. This is amongst the best in the industry. TRNO outperforms 98.46% of its industry peers.
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 90.00% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that TRNO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, TRNO belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 11.17 | ||
| Altman-Z | 3.57 |
ROIC/WACC0.33
WACC8.02%
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 of 0.99. This is comparable to the rest of the industry: TRNO outperforms 53.08% of its industry peers.
A Quick Ratio of 0.99 indicates that TRNO may have some problems paying its short term obligations.
With a Quick ratio value of 0.99, TRNO perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.56% over the past year.
The Earnings Per Share has been growing by 17.70% on average over the past years. This is quite good.
The Revenue has grown by 18.24% in the past year. This is quite good.
The Revenue has been growing by 17.48% on average over the past years. This is quite good.
EPS 1Y (TTM)25.56%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%72.97%
Revenue 1Y (TTM)18.24%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%19.08%
3.2 Future
The Earnings Per Share is expected to grow by 0.84% 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 17.77% on average per year.
EPS Next Y-16.77%
EPS Next 2Y-7.61%
EPS Next 3Y0.84%
EPS Next 5YN/A
Revenue Next Year19.91%
Revenue Next 2Y15.55%
Revenue Next 3Y15.64%
Revenue Next 5Y17.77%
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 23.79, the valuation of TRNO can be described as rather expensive.
70.00% of the companies in the same industry are more expensive than TRNO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TRNO to the average of the S&P500 Index (26.48), we can say TRNO is valued inline with the index average.
TRNO is valuated quite expensively with a Price/Forward Earnings ratio of 32.81.
TRNO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRNO is cheaper than 70.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.04. TRNO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 32.81 |
4.2 Price Multiples
TRNO's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. TRNO is more expensive than 90.00% of the companies 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 | 83.61 | ||
| EV/EBITDA | 24.13 |
4.3 Compensation for Growth
The decent profitability rating of TRNO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y-7.61%
EPS Next 3Y0.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.81%, TRNO has a reasonable but not impressive dividend return.
TRNO's Dividend Yield is slightly below the industry average, which is at 6.80.
Compared to an average S&P500 Dividend Yield of 2.40, TRNO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
The dividend of TRNO is nicely growing with an annual growth rate of 13.58%!
TRNO has been paying a dividend for at least 10 years, so it has a reliable track record.
TRNO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.58%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
TRNO pays out 94.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TRNO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP94.41%
EPS Next 2Y-7.61%
EPS Next 3Y0.84%
53.77
-0.87 (-1.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners111.22%
Inst Owner Change0.09%
Ins Owners1.88%
Ins Owner Change-0.42%
Market Cap5.56B
Analysts73.91
Price Target65.47 (21.76%)
Short Float %5.58%
Short Ratio6.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend1.87
Dividend Growth(5Y)13.58%
DP94.41%
Div Incr Years11
Div Non Decr Years11
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)0.18%
PT rev (3m)-2.94%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)-1%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 32.81 | ||
| P/S | 13.62 | ||
| P/FCF | 83.61 | ||
| P/OCF | 22.48 | ||
| P/B | 1.43 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 24.13 |
EPS(TTM)2.26
EY4.2%
EPS(NY)1.64
Fwd EY3.05%
FCF(TTM)0.64
FCFY1.2%
OCF(TTM)2.39
OCFY4.45%
SpS3.95
BVpS37.7
TBVpS37.7
PEG (NY)N/A
PEG (5Y)1.34
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 | 3.57 |
F-Score6
WACC8.02%
ROIC/WACC0.33
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)25.56%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%72.97%
EPS Next Y-16.77%
EPS Next 2Y-7.61%
EPS Next 3Y0.84%
EPS Next 5YN/A
Revenue 1Y (TTM)18.24%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%19.08%
Revenue Next Year19.91%
Revenue Next 2Y15.55%
Revenue Next 3Y15.64%
Revenue Next 5Y17.77%
EBIT growth 1Y15.36%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year99.84%
EBIT Next 3Y38.14%
EBIT Next 5Y33.44%
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%