PROLOGIS INC (PLD) Stock Fundamental Analysis
NYSE:PLD - New York Stock Exchange, Inc. - US74340W1036 - REIT - Currency: USD
Overall PLD gets a fundamental rating of 4 out of 10. We evaluated PLD against 128 industry peers in the Diversified REITs industry. PLD scores excellent on profitability, but there are concerns on its financial health. PLD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PLD had positive earnings in the past year.
PLD had a positive operating cash flow in the past year.
In the past 5 years PLD has always been profitable.
PLD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PLD's Return On Assets of 3.21% is amongst the best of the industry. PLD outperforms 81.60% of its industry peers.
PLD has a Return On Equity of 5.80%. This is in the better half of the industry: PLD outperforms 80.00% of its industry peers.
The Return On Invested Capital of PLD (2.39%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PLD is in line with the industry average of 3.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 5.8% | ||
| ROIC | 2.39% |
ROA(3y)3.67%
ROA(5y)3.73%
ROE(3y)6.32%
ROE(5y)6.47%
ROIC(3y)2.52%
ROIC(5y)2.39%
1.3 Margins
The Profit Margin of PLD (39.01%) is better than 91.20% of its industry peers.
PLD's Profit Margin has been stable in the last couple of years.
PLD has a Operating Margin of 35.84%. This is in the better half of the industry: PLD outperforms 79.20% of its industry peers.
In the last couple of years the Operating Margin of PLD has grown nicely.
Looking at the Gross Margin, with a value of 74.34%, PLD is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
In the last couple of years the Gross Margin of PLD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.84% | ||
| PM (TTM) | 39.01% | ||
| GM | 74.34% |
OM growth 3Y3.59%
OM growth 5Y4.87%
PM growth 3Y-9.67%
PM growth 5Y-0.7%
GM growth 3Y0.52%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PLD is destroying value.
The number of shares outstanding for PLD remains at a similar level compared to 1 year ago.
PLD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PLD has a worse debt to assets ratio.
2.2 Solvency
PLD has an Altman-Z score of 1.74. This is a bad value and indicates that PLD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, PLD belongs to the top of the industry, outperforming 92.80% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that PLD is somewhat dependend on debt financing.
The Debt to Equity ratio of PLD (0.61) is better than 83.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC0.32
WACC7.51%
2.3 Liquidity
PLD has a Current Ratio of 0.32. This is a bad value and indicates that PLD is not financially healthy enough and could expect problems in meeting its short term obligations.
PLD has a Current ratio of 0.32. This is amonst the worse of the industry: PLD underperforms 91.20% of its industry peers.
PLD has a Quick Ratio of 0.32. This is a bad value and indicates that PLD is not financially healthy enough and could expect problems in meeting its short term obligations.
PLD has a worse Quick ratio (0.32) than 89.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.58% over the past year.
Measured over the past years, PLD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.30% on average per year.
The Revenue has been growing slightly by 2.22% in the past year.
Measured over the past years, PLD shows a quite strong growth in Revenue. The Revenue has been growing by 19.75% on average per year.
EPS 1Y (TTM)21.58%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%101.47%
Revenue 1Y (TTM)2.22%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%10.34%
3.2 Future
Based on estimates for the next years, PLD will show a small growth in Earnings Per Share. The EPS will grow by 2.75% on average per year.
Based on estimates for the next years, PLD will show a quite strong growth in Revenue. The Revenue will grow by 8.64% on average per year.
EPS Next Y-33.74%
EPS Next 2Y-12.68%
EPS Next 3Y-4.56%
EPS Next 5Y2.75%
Revenue Next Year8.57%
Revenue Next 2Y7.85%
Revenue Next 3Y7.1%
Revenue Next 5Y8.64%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.98, which means the current valuation is very expensive for PLD.
Compared to the rest of the industry, the Price/Earnings ratio of PLD indicates a somewhat cheap valuation: PLD is cheaper than 62.40% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.43, PLD is valued at the same level.
PLD is valuated quite expensively with a Price/Forward Earnings ratio of 46.76.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLD indicates a somewhat cheap valuation: PLD is cheaper than 65.60% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.67. PLD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.98 | ||
| Fwd PE | 46.76 |
4.2 Price Multiples
92.00% of the companies in the same industry are cheaper than PLD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.94 |
4.3 Compensation for Growth
The decent profitability rating of PLD may justify a higher PE ratio.
PLD's earnings are expected to decrease with -4.56% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.01
EPS Next 2Y-12.68%
EPS Next 3Y-4.56%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.18%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 19.10, PLD is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, PLD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
The dividend of PLD is nicely growing with an annual growth rate of 12.57%!
PLD has paid a dividend for at least 10 years, which is a reliable track record.
PLD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.57%
Div Incr Years10
Div Non Decr Years14
5.3 Sustainability
113.26% of the earnings are spent on dividend by PLD. This is not a sustainable payout ratio.
PLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP113.26%
EPS Next 2Y-12.68%
EPS Next 3Y-4.56%
123.92
+1.15 (+0.94%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.83%
Inst Owner Change0.39%
Ins Owners0.25%
Ins Owner Change1.2%
Market Cap114.77B
Analysts79.29
Price Target132.11 (6.61%)
Short Float %1.19%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend3.5
Dividend Growth(5Y)12.57%
DP113.26%
Div Incr Years10
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)61%
Min EPS beat(2)53.35%
Max EPS beat(2)68.66%
EPS beat(4)4
Avg EPS beat(4)38.74%
Min EPS beat(4)10.89%
Max EPS beat(4)68.66%
EPS beat(8)7
Avg EPS beat(8)28.29%
EPS beat(12)11
Avg EPS beat(12)51.5%
EPS beat(16)15
Avg EPS beat(16)50.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-2.2%
Revenue beat(4)0
Avg Revenue beat(4)-3.1%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)-2.2%
Revenue beat(8)3
Avg Revenue beat(8)1.54%
Revenue beat(12)7
Avg Revenue beat(12)8.68%
Revenue beat(16)11
Avg Revenue beat(16)9.66%
PT rev (1m)-0.98%
PT rev (3m)-3.05%
EPS NQ rev (1m)2.13%
EPS NQ rev (3m)2.13%
EPS NY rev (1m)-21.36%
EPS NY rev (3m)-25.56%
Revenue NQ rev (1m)-2.13%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.98 | ||
| Fwd PE | 46.76 | ||
| P/S | 14.55 | ||
| P/FCF | N/A | ||
| P/OCF | 24.68 | ||
| P/B | 2.16 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 26.94 |
EPS(TTM)4
EY3.23%
EPS(NY)2.65
Fwd EY2.14%
FCF(TTM)-1.49
FCFYN/A
OCF(TTM)5.02
OCFY4.05%
SpS8.52
BVpS57.3
TBVpS57.3
PEG (NY)N/A
PEG (5Y)3.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 5.8% | ||
| ROCE | 3.03% | ||
| ROIC | 2.39% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.53% | ||
| OM | 35.84% | ||
| PM (TTM) | 39.01% | ||
| GM | 74.34% | ||
| FCFM | N/A |
ROA(3y)3.67%
ROA(5y)3.73%
ROE(3y)6.32%
ROE(5y)6.47%
ROIC(3y)2.52%
ROIC(5y)2.39%
ROICexc(3y)2.54%
ROICexc(5y)2.41%
ROICexgc(3y)2.66%
ROICexgc(5y)2.52%
ROCE(3y)3.19%
ROCE(5y)3.03%
ROICexcg growth 3Y6.79%
ROICexcg growth 5Y6.05%
ROICexc growth 3Y5.95%
ROICexc growth 5Y5.49%
OM growth 3Y3.59%
OM growth 5Y4.87%
PM growth 3Y-9.67%
PM growth 5Y-0.7%
GM growth 3Y0.52%
GM growth 5Y0.68%
F-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 235.36% | ||
| Cap/Sales | 76.43% | ||
| Interest Coverage | 4.1 | ||
| Cash Conversion | 86.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.74 |
F-Score4
WACC7.51%
ROIC/WACC0.32
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.58%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%101.47%
EPS Next Y-33.74%
EPS Next 2Y-12.68%
EPS Next 3Y-4.56%
EPS Next 5Y2.75%
Revenue 1Y (TTM)2.22%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%10.34%
Revenue Next Year8.57%
Revenue Next 2Y7.85%
Revenue Next 3Y7.1%
Revenue Next 5Y8.64%
EBIT growth 1Y-7.09%
EBIT growth 3Y24.19%
EBIT growth 5Y25.58%
EBIT Next Year78.8%
EBIT Next 3Y25.75%
EBIT Next 5Y28.31%
FCF growth 1Y30.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.59%
OCF growth 3YN/A
OCF growth 5YN/A