PROLOGIS INC (PLD)
US74340W1036 - REIT
We assign a fundamental rating of 5 out of 10 to PLD. PLD was compared to 130 industry peers in the Diversified REITs industry. PLD has an excellent profitability rating, 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
In the past year PLD was profitable.
PLD had a positive operating cash flow in the past year.
PLD had positive earnings in each of the past 5 years.
PLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PLD has a better Return On Assets (3.21%) than 78.91% of its industry peers.
The Return On Equity of PLD (5.80%) is better than 75.00% of its industry peers.
PLD has a Return On Invested Capital of 2.39%. This is comparable to the rest of the industry: PLD outperforms 42.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PLD is in line with the industry average of 3.08%.
The last Return On Invested Capital (2.39%) for PLD is above the 3 year average (2.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 5.8% | ||
| ROIC | 2.39% |
ROA(3y)4.04%
ROA(5y)3.73%
ROE(3y)6.94%
ROE(5y)6.47%
ROIC(3y)2.38%
ROIC(5y)2.26%
1.3 Margins
PLD's Profit Margin of 39.01% is amongst the best of the industry. PLD outperforms 91.41% of its industry peers.
PLD's Profit Margin has declined in the last couple of years.
PLD has a better Operating Margin (35.84%) than 80.47% of its industry peers.
PLD's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 74.34%, PLD is doing good in the industry, outperforming 69.53% 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 3Y6.65%
OM growth 5Y4.94%
PM growth 3Y4.67%
PM growth 5Y-8.27%
GM growth 3Y0.59%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PLD is destroying value.
PLD has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for PLD has been increased compared to 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 1.50. This is a bad value and indicates that PLD is not financially healthy and even has some risk of bankruptcy.
PLD's Altman-Z score of 1.50 is amongst the best of the industry. PLD outperforms 90.63% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that PLD is somewhat dependend on debt financing.
PLD has a Debt to Equity ratio of 0.61. This is amongst the best in the industry. PLD outperforms 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.32
WACC7.55%
2.3 Liquidity
A Current Ratio of 0.32 indicates that PLD may have some problems paying its short term obligations.
With a Current ratio value of 0.32, PLD is not doing good in the industry: 92.97% of the companies in the same industry are doing better.
A Quick Ratio of 0.32 indicates that PLD may have some problems paying its short term obligations.
PLD has a worse Quick ratio (0.32) than 91.41% 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 been growing slightly by 2.16% over the past year.
The Earnings Per Share has been growing slightly by 2.99% on average over the past years.
The Revenue has been growing slightly by 0.05% in the past year.
Measured over the past years, PLD shows a very strong growth in Revenue. The Revenue has been growing by 23.40% on average per year.
EPS 1Y (TTM)2.16%
EPS 3Y17.66%
EPS 5Y2.99%
EPS Q2Q%35%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y21.82%
Revenue growth 5Y23.4%
Sales Q2Q%6.96%
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 6.46% 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 9.36% on average per year.
EPS Next Y8.84%
EPS Next 2Y1.21%
EPS Next 3Y0.02%
EPS Next 5Y6.46%
Revenue Next Year12.45%
Revenue Next 2Y9.78%
Revenue Next 3Y9.19%
Revenue Next 5Y9.36%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PLD is valuated quite expensively with a Price/Earnings ratio of 32.13.
Based on the Price/Earnings ratio, PLD is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
PLD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
With a Price/Forward Earnings ratio of 31.56, PLD can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PLD is valued a bit cheaper than the industry average as 76.56% of the companies are valued more expensively.
PLD's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.13 | ||
| Fwd PE | 31.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLD is valued more expensive than 91.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PLD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.64
PEG (5Y)10.76
EPS Next 2Y1.21%
EPS Next 3Y0.02%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.79%.
Compared to an average industry Dividend Yield of 16.05, PLD is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, PLD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
5.2 History
On average, the dividend of PLD grows each year by 12.57%, which is quite nice.
PLD has paid a dividend for at least 10 years, which is a reliable track record.
PLD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y1.21%
EPS Next 3Y0.02%
PROLOGIS INC
NYSE:PLD (12/26/2024, 11:30:50 AM)
106.36
+1.66 (+1.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.42%
Inst Owner Change0.34%
Ins Owners0.25%
Ins Owner Change0.93%
Market Cap98.51B
Analysts79.29
Price Target135.41 (27.31%)
Short Float %1.14%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Dividend Growth(5Y)12.57%
DP113.26%
Div Incr Years10
Div Non Decr Years14
Ex-Date
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)-2.75%
Min Revenue beat(2)-3.31%
Max Revenue beat(2)-2.2%
Revenue beat(4)0
Avg Revenue beat(4)-3.06%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)-2.2%
Revenue beat(8)3
Avg Revenue beat(8)1.56%
Revenue beat(12)7
Avg Revenue beat(12)8.69%
Revenue beat(16)11
Avg Revenue beat(16)9.67%
PT rev (1m)-1.29%
PT rev (3m)-1.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.62%
EPS NY rev (1m)-6.58%
EPS NY rev (3m)24.69%
Revenue NQ rev (1m)3.33%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)1.6%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.13 | ||
| Fwd PE | 31.56 | ||
| P/S | 12.48 | ||
| P/FCF | N/A | ||
| P/OCF | 21.18 | ||
| P/B | 1.86 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 23.84 |
EPS(TTM)3.31
EY3.11%
EPS(NY)3.37
Fwd EY3.17%
FCF(TTM)-1.49
FCFYN/A
OCF(TTM)5.02
OCFY4.72%
SpS8.52
BVpS57.3
TBVpS57.3
PEG (NY)3.64
PEG (5Y)10.76
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)4.04%
ROA(5y)3.73%
ROE(3y)6.94%
ROE(5y)6.47%
ROIC(3y)2.38%
ROIC(5y)2.26%
ROICexc(3y)2.4%
ROICexc(5y)2.28%
ROICexgc(3y)2.49%
ROICexgc(5y)2.37%
ROCE(3y)3.02%
ROCE(5y)2.86%
ROICexcg growth 3Y9.25%
ROICexcg growth 5Y8.43%
ROICexc growth 3Y9.25%
ROICexc growth 5Y8.46%
OM growth 3Y6.65%
OM growth 5Y4.94%
PM growth 3Y4.67%
PM growth 5Y-8.27%
GM growth 3Y0.59%
GM growth 5Y0.53%
F-Score3
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 235.35% | ||
| 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 | 1.5 |
F-Score3
WACC7.55%
ROIC/WACC0.32
Cap/Depr(3y)321.37%
Cap/Depr(5y)286.85%
Cap/Sales(3y)101.23%
Cap/Sales(5y)93.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.16%
EPS 3Y17.66%
EPS 5Y2.99%
EPS Q2Q%35%
EPS Next Y8.84%
EPS Next 2Y1.21%
EPS Next 3Y0.02%
EPS Next 5Y6.46%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y21.82%
Revenue growth 5Y23.4%
Sales Q2Q%6.96%
Revenue Next Year12.45%
Revenue Next 2Y9.78%
Revenue Next 3Y9.19%
Revenue Next 5Y9.36%
EBIT growth 1Y-7.09%
EBIT growth 3Y29.91%
EBIT growth 5Y29.5%
EBIT Next Year65.68%
EBIT Next 3Y23.91%
EBIT Next 5Y22.24%
FCF growth 1Y55.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y30.48%
OCF growth 3Y22.3%
OCF growth 5Y24.4%