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PROLOGIS INC (PLD) Stock Fundamental Analysis

NYSE:PLD - New York Stock Exchange, Inc. - US74340W1036 - REIT - Currency: USD

119.17  -1.04 (-0.87%)

After market: 117.684 -1.49 (-1.25%)

Fundamental Rating

4

PLD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. PLD scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, PLD is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

PLD had positive earnings in the past year.
In the past year PLD had a positive cash flow from operations.
Each year in the past 5 years PLD has been profitable.
Of the past 5 years PLD 4 years had a positive operating cash flow.
PLD Yearly Net Income VS EBIT VS OCF VS FCFPLD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B

1.2 Ratios

PLD has a Return On Assets of 3.21%. This is in the better half of the industry: PLD outperforms 79.37% of its industry peers.
PLD has a Return On Equity of 5.80%. This is in the better half of the industry: PLD outperforms 75.40% 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 41.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PLD is in line with the industry average of 3.11%.
Industry RankSector 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%
PLD Yearly ROA, ROE, ROICPLD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

PLD has a better Profit Margin (39.01%) than 91.27% of its industry peers.
In the last couple of years the Profit Margin of PLD has remained more or less at the same level.
Looking at the Operating Margin, with a value of 35.84%, PLD belongs to the top of the industry, outperforming 80.16% of the companies in the same industry.
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 69.84% 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 RankSector 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%
PLD Yearly Profit, Operating, Gross MarginsPLD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

2

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.
The number of shares outstanding for PLD has been increased compared to 5 years ago.
PLD has a worse debt/assets ratio than last year.
PLD Yearly Shares OutstandingPLD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
PLD Yearly Total Debt VS Total AssetsPLD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

Based on the Altman-Z score of 1.69, we must say that PLD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PLD (1.69) is better than 94.44% of its industry peers.
PLD has a Debt/Equity ratio of 0.61. This is a neutral value indicating PLD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, PLD belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Altman-Z 1.69
ROIC/WACC0.31
WACC7.68%
PLD Yearly LT Debt VS Equity VS FCFPLD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B 40B 50B

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 worse Current ratio (0.32) than 93.65% of its industry peers.
A Quick Ratio of 0.32 indicates that PLD may have some problems paying its short term obligations.
PLD's Quick ratio of 0.32 is on the low side compared to the rest of the industry. PLD is outperformed by 92.06% of its industry peers.
Industry RankSector Rank
Current Ratio 0.32
Quick Ratio 0.32
PLD Yearly Current Assets VS Current LiabilitesPLD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

5

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.
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)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

The Earnings Per Share is expected to grow by 2.75% on average over the next years.
The Revenue is expected to grow by 8.64% on average over the next years. This is quite good.
EPS Next Y-27.87%
EPS Next 2Y-9.08%
EPS Next 3Y-3.37%
EPS Next 5Y2.75%
Revenue Next Year7.37%
Revenue Next 2Y7.81%
Revenue Next 3Y8.55%
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.
PLD Yearly Revenue VS EstimatesPLD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B 10B
PLD Yearly EPS VS EstimatesPLD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1 2 3 4

3

4. Valuation

4.1 Price/Earnings Ratio

PLD is valuated quite expensively with a Price/Earnings ratio of 29.79.
65.87% of the companies in the same industry are more expensive than PLD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.28. PLD is around the same levels.
A Price/Forward Earnings ratio of 41.30 indicates a quite expensive valuation of PLD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLD indicates a somewhat cheap valuation: PLD is cheaper than 65.87% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 91.29. PLD is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 29.79
Fwd PE 41.3
PLD Price Earnings VS Forward Price EarningsPLD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PLD indicates a rather expensive valuation: PLD more expensive than 92.06% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 26.32
PLD Per share dataPLD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

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 -3.37% in the coming years.
PEG (NY)N/A
PEG (5Y)2.89
EPS Next 2Y-9.08%
EPS Next 3Y-3.37%

5

5. Dividend

5.1 Amount

PLD has a Yearly Dividend Yield of 3.19%.
Compared to an average industry Dividend Yield of 18.24, PLD is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.27, PLD pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.19%

5.2 History

On average, the dividend of PLD grows each year by 12.57%, which is quite nice.
PLD has been paying a dividend for at least 10 years, so it has 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
PLD Yearly Dividends per sharePLD Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3

5.3 Sustainability

PLD pays out 113.26% 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.
DP113.26%
EPS Next 2Y-9.08%
EPS Next 3Y-3.37%
PLD Yearly Income VS Free CF VS DividendPLD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B
PLD Dividend Payout.PLD Dividend Payout, showing the Payout Ratio.PLD Dividend Payout.PayoutRetained Earnings

PROLOGIS INC

NYSE:PLD (1/29/2025, 8:04:00 PM)

After market: 117.684 -1.49 (-1.25%)

119.17

-1.04 (-0.87%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)01-21 2025-01-21/bmo
Earnings (Next)N/A N/A
Inst Owners95.42%
Inst Owner Change-0.03%
Ins Owners0.25%
Ins Owner Change1.6%
Market Cap110.37B
Analysts77.86
Price Target130.76 (9.73%)
Short Float %1.38%
Short Ratio3.08
Dividend
Industry RankSector Rank
Dividend Yield 3.19%
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)-1.47%
PT rev (3m)-2.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.27%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-2.44%
Valuation
Industry RankSector Rank
PE 29.79
Fwd PE 41.3
P/S 13.99
P/FCF N/A
P/OCF 23.73
P/B 2.08
P/tB 2.08
EV/EBITDA 26.32
EPS(TTM)4
EY3.36%
EPS(NY)2.89
Fwd EY2.42%
FCF(TTM)-1.49
FCFYN/A
OCF(TTM)5.02
OCFY4.21%
SpS8.52
BVpS57.3
TBVpS57.3
PEG (NY)N/A
PEG (5Y)2.89
Profitability
Industry RankSector 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 RankSector 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 1.69
F-Score4
WACC7.68%
ROIC/WACC0.31
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-27.87%
EPS Next 2Y-9.08%
EPS Next 3Y-3.37%
EPS Next 5Y2.75%
Revenue 1Y (TTM)2.22%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%10.34%
Revenue Next Year7.37%
Revenue Next 2Y7.81%
Revenue Next 3Y8.55%
Revenue Next 5Y8.64%
EBIT growth 1Y-7.09%
EBIT growth 3Y24.19%
EBIT growth 5Y25.58%
EBIT Next Year75.84%
EBIT Next 3Y30.12%
EBIT Next 5Y27.5%
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