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. While TRNO belongs to the best of the industry regarding profitability, 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
TRNO had positive earnings in the past year.
TRNO had a positive operating cash flow in the past year.
TRNO had positive earnings in each of the past 5 years.
TRNO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRNO has a Return On Assets of 3.99%. This is amongst the best in the industry. TRNO outperforms 89.15% of its industry peers.
With a decent Return On Equity value of 5.02%, TRNO is doing good in the industry, outperforming 68.99% 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 47.29% 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
The Profit Margin of TRNO (47.97%) is better than 96.12% of its industry peers.
TRNO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 38.80%, TRNO belongs to the top of the industry, outperforming 84.50% of the companies in the same industry.
In the last couple of years the Operating Margin of TRNO has grown nicely.
TRNO has a Gross Margin of 74.03%. This is in the better half of the industry: TRNO outperforms 69.77% of its industry peers.
TRNO's Gross Margin has been stable in the last couple of years.
| 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.
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.
TRNO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.67 indicates that TRNO is not in any danger for bankruptcy at the moment.
TRNO has a better Altman-Z score (3.67) than 99.22% 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.
TRNO has a Debt to FCF ratio of 11.17. This is amongst the best in the industry. TRNO outperforms 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
WACC8.21%
2.3 Liquidity
A Current Ratio of 0.99 indicates that TRNO may have some problems paying its short term obligations.
TRNO has a Current ratio (0.99) which is in line with its industry peers.
TRNO has a Quick 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 Quick ratio of 0.99. This is comparable to the rest of the industry: TRNO outperforms 54.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
TRNO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.19%.
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%.
Measured over the past years, TRNO shows a quite strong growth in Revenue. The Revenue has been growing by 17.48% on average per year.
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 28.35.
Based on the Price/Earnings ratio, TRNO is valued a bit cheaper than 65.89% of the companies in the same industry.
TRNO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 33.12, which means the current valuation is very expensive for TRNO.
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.
TRNO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 33.12 |
4.2 Price Multiples
93.02% of the companies in the same industry are cheaper than TRNO, based on the Enterprise Value to EBITDA ratio.
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 | 87.73 | ||
| EV/EBITDA | 24.84 |
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
TRNO has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.68, TRNO is paying slightly less dividend.
TRNO's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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
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%
56.42
-0.64 (-1.12%)
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-1.76%
Ins Owners1.9%
Ins Owner Change-0.42%
Market Cap5.83B
Analysts73.33
Price Target67.26 (19.21%)
Short Float %6.45%
Short Ratio6.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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%
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 | 28.35 | ||
| Fwd PE | 33.12 | ||
| P/S | 14.29 | ||
| P/FCF | 87.73 | ||
| P/OCF | 23.59 | ||
| P/B | 1.5 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 24.84 |
EPS(TTM)1.99
EY3.53%
EPS(NY)1.7
Fwd EY3.02%
FCF(TTM)0.64
FCFY1.14%
OCF(TTM)2.39
OCFY4.24%
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
WACC8.21%
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%