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
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.
Each year in the past 5 years TRNO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.99%, TRNO belongs to the top of the industry, outperforming 89.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.02%, TRNO is in the better half of the industry, outperforming 68.99% of the companies in the same industry.
TRNO has a Return On Invested Capital (2.63%) 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 3.15%.
| 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
With an excellent Profit Margin value of 47.97%, TRNO belongs to the best of the industry, outperforming 96.12% 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 84.50% of its industry peers.
In the last couple of years the Operating Margin of TRNO has grown nicely.
The Gross Margin of TRNO (74.03%) is better 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRNO is destroying value.
The number of shares outstanding for TRNO has been increased compared to 1 year ago.
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
TRNO has an Altman-Z score of 3.68. This indicates that TRNO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.68, TRNO belongs to the best of the industry, outperforming 99.22% of the companies in the same industry.
The Debt to FCF ratio of TRNO is 11.17, which is on the high side as it means it would take TRNO, 11.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TRNO (11.17) is better than 89.92% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that TRNO is not too dependend on debt financing.
TRNO has a better Debt to Equity ratio (0.19) than 98.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 11.17 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.32
WACC8.27%
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
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.
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.
Based on estimates for the next years, TRNO will show a quite strong growth in Revenue. The Revenue will grow by 15.09% on average per year.
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
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 28.67, which means the current valuation is very expensive for TRNO.
Based on the Price/Earnings ratio, TRNO is valued a bit cheaper than the industry average as 65.89% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TRNO to the average of the S&P500 Index (26.20), we can say TRNO is valued inline with the index average.
A Price/Forward Earnings ratio of 33.50 indicates a quite expensive valuation of TRNO.
Based on the Price/Forward Earnings ratio, TRNO is valued a bit cheaper than 72.09% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, TRNO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.67 | ||
| Fwd PE | 33.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRNO is valued expensively inside the industry as 92.25% of the companies are valued cheaper.
TRNO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 88.73 | ||
| EV/EBITDA | 24.9 |
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)1.62
EPS Next 2Y-5.81%
EPS Next 3Y5.02%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 3.52%.
Compared to an average industry Dividend Yield of 6.93, TRNO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, TRNO pays a bit more dividend than the S&P500 average.
| 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 paid a dividend for at least 10 years, which is 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.
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-5.81%
EPS Next 3Y5.02%
57.06
+0.49 (+0.87%)
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 Cap5.90B
Analysts73.33
Price Target67.26 (17.88%)
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 | 28.67 | ||
| Fwd PE | 33.5 | ||
| P/S | 14.45 | ||
| P/FCF | 88.73 | ||
| P/OCF | 23.86 | ||
| P/B | 1.51 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 24.9 |
EPS(TTM)1.99
EY3.49%
EPS(NY)1.7
Fwd EY2.99%
FCF(TTM)0.64
FCFY1.13%
OCF(TTM)2.39
OCFY4.19%
SpS3.95
BVpS37.7
TBVpS37.7
PEG (NY)N/A
PEG (5Y)1.62
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 | 3.68 |
F-Score6
WACC8.27%
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%