PROLOGIS INC (PLD) Stock Fundamental Analysis
USA - NYSE:PLD - US74340W1036 - REIT
126.26 USD
+1.36 (+1.09%)
125.59 USD
-0.67 (-0.53%)
PLD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 industry peers in the Diversified REITs industry. While PLD belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, PLD is valued expensive at the moment.
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.
In the past 5 years PLD has always been profitable.
In the past 5 years PLD always reported a positive cash flow from operatings.
1.2 Ratios
PLD's Return On Assets of 3.26% is fine compared to the rest of the industry. PLD outperforms 78.13% of its industry peers.
PLD has a better Return On Equity (6.08%) than 72.66% of its industry peers.
PLD has a Return On Invested Capital (2.97%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PLD is in line with the industry average of 3.04%.
The last Return On Invested Capital (2.97%) for PLD is above the 3 year average (2.50%), which is a sign of increasing profitability.
| 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
PLD has a Profit Margin of 36.64%. This is amongst the best in the industry. PLD outperforms 90.63% of its industry peers.
In the last couple of years the Profit Margin of PLD has remained more or less at the same level.
The Operating Margin of PLD (39.78%) is better than 85.94% of its industry peers.
PLD's Operating Margin has improved in the last couple of years.
The Gross Margin of PLD (75.10%) is better than 73.44% of its industry peers.
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 | 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
PLD has a debt to FCF ratio of 120.19. This is a negative value and a sign of low solvency as PLD would need 120.19 years to pay back of all of its debts.
PLD has a Debt to FCF ratio of 120.19. This is in the better half of the industry: PLD outperforms 61.72% 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's Debt to Equity ratio of 0.67 is amongst the best of the industry. PLD outperforms 83.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 120.19 | ||
| Altman-Z | N/A |
ROIC/WACC0.4
WACC7.37%
2.3 Liquidity
PLD has a Current 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.
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.
A Quick Ratio of 0.20 indicates that PLD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.20, PLD is doing worse than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
PLD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.63%.
PLD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.30% yearly.
PLD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.75%.
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)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
Based on estimates for the next years, PLD will show a small growth in Earnings Per Share. The EPS will grow by 3.02% on average per year.
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
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.
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
Based on the Price/Earnings ratio of 36.81, the valuation of PLD can be described as expensive.
Based on the Price/Earnings ratio, PLD is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
PLD is valuated rather expensively when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
PLD is valuated quite expensively with a Price/Forward Earnings ratio of 42.11.
Based on the Price/Forward Earnings ratio, PLD is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 33.72. PLD is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.81 | ||
| Fwd PE | 42.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLD is valued more expensive than 90.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PLD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 399.18 | ||
| EV/EBITDA | 24.65 |
4.3 Compensation for Growth
PLD has a very decent profitability rating, which may justify a higher PE ratio.
PLD's earnings are expected to decrease with -4.42% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.57
EPS Next 2Y-13.43%
EPS Next 3Y-4.42%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.29, PLD is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, PLD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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 their dividend for at least 10 years, which is a reliable track record.
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%
126.26
+1.36 (+1.09%)
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-0.88%
Ins Owners0.24%
Ins Owner Change14.84%
Market Cap117.25B
Revenue(TTM)8.74B
Net Income(TTM)3.20B
Analysts78.67
Price Target131.82 (4.4%)
Short Float %0.96%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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)7.25%
PT rev (3m)8.96%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-3.73%
EPS NY rev (1m)2.88%
EPS NY rev (3m)5.18%
Revenue NQ rev (1m)-2.3%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-1.51%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.81 | ||
| Fwd PE | 42.11 | ||
| P/S | 13.42 | ||
| P/FCF | 399.18 | ||
| P/OCF | 22.61 | ||
| P/B | 2.23 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 24.65 |
EPS(TTM)3.43
EY2.72%
EPS(NY)3
Fwd EY2.37%
FCF(TTM)0.32
FCFY0.25%
OCF(TTM)5.58
OCFY4.42%
SpS9.41
BVpS56.68
TBVpS56.68
PEG (NY)N/A
PEG (5Y)3.57
Graham Number66.14
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
WACC7.37%
ROIC/WACC0.4
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%.