PROLOGIS INC (PLD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PLD - US74340W1036 - REIT
128.53 USD
+0.37 (+0.29%)
128.53 USD
0 (0%)
PLD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 industry peers in the Diversified REITs industry. PLD scores excellent on profitability, but there are concerns on its financial health. PLD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PLD was profitable.
In the past year PLD had a positive cash flow from operations.
PLD had positive earnings in each of the past 5 years.
Each year in the past 5 years PLD had a positive operating cash flow.
1.2 Ratios
PLD's Return On Assets of 3.26% is fine compared to the rest of the industry. PLD outperforms 78.91% of its industry peers.
With a decent Return On Equity value of 6.08%, PLD is doing good in the industry, outperforming 74.22% of the companies in the same industry.
PLD has a Return On Invested Capital (2.97%) which is in line with its industry peers.
PLD had an Average Return On Invested Capital over the past 3 years of 2.50%. This is in line with the industry average of 3.06%.
The 3 year average ROIC (2.50%) for PLD is below the current ROIC(2.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.08% | ||
| ROIC | 2.97% |
ROA(3y)3.67%
ROA(5y)3.73%
ROE(3y)6.32%
ROE(5y)6.47%
ROIC(3y)2.5%
ROIC(5y)2.38%
1.3 Margins
With an excellent Profit Margin value of 36.64%, PLD belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
In the last couple of years the Profit Margin of PLD has remained more or less at the same level.
With an excellent Operating Margin value of 39.78%, PLD belongs to the best of the industry, outperforming 85.16% of the companies in the same industry.
In the last couple of years the Operating Margin of PLD has grown nicely.
Looking at the Gross Margin, with a value of 75.10%, PLD is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
PLD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.78% | ||
| PM (TTM) | 36.64% | ||
| GM | 75.1% |
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 has been increased compared to 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
The Debt to FCF ratio of PLD is 120.19, which is on the high side as it means it would take PLD, 120.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PLD (120.19) is better than 62.50% of its industry peers.
PLD has a Debt/Equity ratio of 0.67. This is a neutral value indicating PLD is somewhat dependend on debt financing.
PLD has a Debt to Equity ratio of 0.67. This is amongst the best in the industry. PLD outperforms 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 120.19 | ||
| Altman-Z | N/A |
ROIC/WACC0.41
WACC7.3%
2.3 Liquidity
A Current Ratio of 0.20 indicates that PLD may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.20, PLD is doing worse than 91.41% of the companies in the same industry.
PLD has a Quick Ratio of 0.20. This is a bad value and indicates that PLD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.20, PLD is not doing good in the industry: 90.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.63% over the past year.
The Earnings Per Share has been growing by 10.30% on average over the past years. This is quite good.
Looking at the last year, PLD shows a quite strong growth in Revenue. The Revenue has grown by 10.75% in the last year.
PLD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.75% yearly.
EPS 1Y (TTM)3.63%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%-24.07%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%8.28%
3.2 Future
PLD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.02% yearly.
The Revenue is expected to grow by 7.13% on average over the next years.
EPS Next Y-32.33%
EPS Next 2Y-13.43%
EPS Next 3Y-4.42%
EPS Next 5Y3.02%
Revenue Next Year9.4%
Revenue Next 2Y8.01%
Revenue Next 3Y7.83%
Revenue Next 5Y7.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 37.47, which means the current valuation is very expensive for PLD.
PLD's Price/Earnings ratio is a bit cheaper when compared to the industry. PLD is cheaper than 60.94% of the companies in the same industry.
PLD's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 42.87, PLD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLD indicates a somewhat cheap valuation: PLD is cheaper than 62.50% of the companies listed in the same industry.
PLD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.47 | ||
| Fwd PE | 42.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLD is valued more expensive than 89.84% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PLD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 406.45 | ||
| EV/EBITDA | 25.21 |
4.3 Compensation for Growth
PLD has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PLD's earnings are expected to decrease with -4.42% in the coming years.
PEG (NY)N/A
PEG (5Y)3.64
EPS Next 2Y-13.43%
EPS Next 3Y-4.42%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.15%.
PLD's Dividend Yield is slightly below the industry average, which is at 6.38.
PLD's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of PLD is nicely growing with an annual growth rate of 12.58%!
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)12.58%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
PLD pays out 116.06% of its income as dividend. This is not a sustainable payout ratio.
PLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP116.06%
EPS Next 2Y-13.43%
EPS Next 3Y-4.42%
128.53
+0.37 (+0.29%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.15%
Inst Owner Change-0.27%
Ins Owners0.24%
Ins Owner Change14.84%
Market Cap119.39B
Revenue(TTM)8.74B
Net Income(TTM)3.20B
Analysts78.67
Price Target133.03 (3.5%)
Short Float %1.04%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend3.86
Dividend Growth(5Y)12.58%
DP116.06%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.95%
Min EPS beat(2)-4.74%
Max EPS beat(2)22.64%
EPS beat(4)3
Avg EPS beat(4)33.28%
Min EPS beat(4)-4.74%
Max EPS beat(4)111.94%
EPS beat(8)7
Avg EPS beat(8)36.01%
EPS beat(12)10
Avg EPS beat(12)29.95%
EPS beat(16)14
Avg EPS beat(16)46.94%
Revenue beat(2)0
Avg Revenue beat(2)-4.84%
Min Revenue beat(2)-5.94%
Max Revenue beat(2)-3.74%
Revenue beat(4)0
Avg Revenue beat(4)-3.74%
Min Revenue beat(4)-5.94%
Max Revenue beat(4)-1.95%
Revenue beat(8)0
Avg Revenue beat(8)-3.42%
Revenue beat(12)3
Avg Revenue beat(12)-0.22%
Revenue beat(16)7
Avg Revenue beat(16)5.57%
PT rev (1m)8.24%
PT rev (3m)9.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.36%
EPS NY rev (1m)1.2%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)-1.9%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.47 | ||
| Fwd PE | 42.87 | ||
| P/S | 13.66 | ||
| P/FCF | 406.45 | ||
| P/OCF | 23.02 | ||
| P/B | 2.27 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 25.21 |
EPS(TTM)3.43
EY2.67%
EPS(NY)3
Fwd EY2.33%
FCF(TTM)0.32
FCFY0.25%
OCF(TTM)5.58
OCFY4.34%
SpS9.41
BVpS56.67
TBVpS56.67
PEG (NY)N/A
PEG (5Y)3.64
Graham Number66.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.08% | ||
| ROCE | 3.76% | ||
| ROIC | 2.97% | ||
| ROICexc | 3.01% | ||
| ROICexgc | 3.2% | ||
| OM | 39.78% | ||
| PM (TTM) | 36.64% | ||
| GM | 75.1% | ||
| FCFM | 3.36% |
ROA(3y)3.67%
ROA(5y)3.73%
ROE(3y)6.32%
ROE(5y)6.47%
ROIC(3y)2.5%
ROIC(5y)2.38%
ROICexc(3y)2.52%
ROICexc(5y)2.4%
ROICexgc(3y)2.61%
ROICexgc(5y)2.49%
ROCE(3y)3.16%
ROCE(5y)3.01%
ROICexgc growth 3Y5.02%
ROICexgc growth 5Y4.99%
ROICexc growth 3Y4.96%
ROICexc growth 5Y4.9%
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-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 120.19 | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 187.16% | ||
| Cap/Sales | 55.98% | ||
| Interest Coverage | 4.09 | ||
| Cash Conversion | 85.15% | ||
| Profit Quality | 9.17% | ||
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z | N/A |
F-Score6
WACC7.3%
ROIC/WACC0.41
Cap/Depr(3y)289.47%
Cap/Depr(5y)281.07%
Cap/Sales(3y)89.36%
Cap/Sales(5y)90.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.63%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%-24.07%
EPS Next Y-32.33%
EPS Next 2Y-13.43%
EPS Next 3Y-4.42%
EPS Next 5Y3.02%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%8.28%
Revenue Next Year9.4%
Revenue Next 2Y8.01%
Revenue Next 3Y7.83%
Revenue Next 5Y7.13%
EBIT growth 1Y22.93%
EBIT growth 3Y24.19%
EBIT growth 5Y25.58%
EBIT Next Year78.72%
EBIT Next 3Y26.89%
EBIT Next 5Y20.82%
FCF growth 1Y114.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7%
OCF growth 3Y17.92%
OCF growth 5Y16.76%
PROLOGIS INC / PLD FAQ
What is the fundamental rating for PLD stock?
ChartMill assigns a fundamental rating of 4 / 10 to PLD.
What is the valuation status for PLD stock?
ChartMill assigns a valuation rating of 2 / 10 to PROLOGIS INC (PLD). This can be considered as Overvalued.
Can you provide the profitability details for PROLOGIS INC?
PROLOGIS INC (PLD) has a profitability rating of 7 / 10.
What is the earnings growth outlook for PROLOGIS INC?
The Earnings per Share (EPS) of PROLOGIS INC (PLD) is expected to decline by -32.33% in the next year.
How sustainable is the dividend of PROLOGIS INC (PLD) stock?
The dividend rating of PROLOGIS INC (PLD) is 5 / 10 and the dividend payout ratio is 116.06%.