PROLOGIS INC (PLD) Stock Fundamental Analysis
USA - NYSE:PLD - US74340W1036 - REIT
113.89 USD
-0.14 (-0.12%)
116.052 USD
+2.16 (+1.9%)
Overall PLD gets a fundamental rating of 4 out of 10. We evaluated PLD against 130 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. 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.
Each year in the past 5 years PLD has 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 3.52% is amongst the best of the industry. PLD outperforms 82.31% of its industry peers.
The Return On Equity of PLD (6.53%) is better than 76.92% of its industry peers.
PLD's Return On Invested Capital of 2.89% is in line compared to the rest of the industry. PLD outperforms 57.69% 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 3.05%.
The last Return On Invested Capital (2.89%) for PLD is above the 3 year average (2.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 6.53% | ||
| ROIC | 2.89% |
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
Looking at the Profit Margin, with a value of 40.22%, PLD belongs to the top of the industry, outperforming 91.54% 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.
PLD has a Operating Margin of 39.34%. This is amongst the best in the industry. PLD outperforms 85.38% of its industry peers.
PLD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 75.35%, PLD is in the better half of the industry, outperforming 73.85% 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 | 39.34% | ||
| PM (TTM) | 40.22% | ||
| GM | 75.35% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PLD is destroying value.
The number of shares outstanding for PLD has been increased compared to 1 year ago.
Compared to 5 years ago, PLD has more shares outstanding
PLD has a worse debt/assets ratio than last year.
2.2 Solvency
PLD has a Debt/Equity ratio of 0.66. This is a neutral value indicating PLD is somewhat dependend on debt financing.
The Debt to Equity ratio of PLD (0.66) is better than 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.4
WACC7.18%
2.3 Liquidity
PLD has a Current Ratio of 0.19. 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 0.19. This is amonst the worse of the industry: PLD underperforms 92.31% of its industry peers.
PLD has a Quick Ratio of 0.19. 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 Quick ratio of 0.19. This is amonst the worse of the industry: PLD underperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.78% over the past year.
The Earnings Per Share has been growing by 10.30% on average over the past years. This is quite good.
PLD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.20%.
The Revenue has been growing by 19.75% on average over the past years. This is quite good.
EPS 1Y (TTM)21.78%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%-33.7%
Revenue 1Y (TTM)10.2%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%9.34%
3.2 Future
PLD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.20% yearly.
Based on estimates for the next years, PLD will show a small growth in Revenue. The Revenue will grow by 6.56% on average per year.
EPS Next Y-33.09%
EPS Next 2Y-14.43%
EPS Next 3Y-6.47%
EPS Next 5Y2.2%
Revenue Next Year11.1%
Revenue Next 2Y8.57%
Revenue Next 3Y7.76%
Revenue Next 5Y6.56%
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
PLD is valuated quite expensively with a Price/Earnings ratio of 30.86.
Compared to the rest of the industry, the Price/Earnings ratio of PLD indicates a somewhat cheap valuation: PLD is cheaper than 65.38% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. PLD is around the same levels.
Based on the Price/Forward Earnings ratio of 38.88, the valuation of PLD can be described as expensive.
Based on the Price/Forward Earnings ratio, PLD is valued a bit cheaper than the industry average as 66.15% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PLD to the average of the S&P500 Index (22.70), we can say PLD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.86 | ||
| Fwd PE | 38.88 |
4.2 Price Multiples
90.00% 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 | 23.3 |
4.3 Compensation for Growth
The excellent profitability rating of PLD may justify a higher PE ratio.
PLD's earnings are expected to decrease with -6.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3
EPS Next 2Y-14.43%
EPS Next 3Y-6.47%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.52%.
PLD's Dividend Yield is slightly below the industry average, which is at 6.66.
Compared to an average S&P500 Dividend Yield of 2.38, PLD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
The dividend of PLD is nicely growing with an annual growth rate of 12.58%!
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)12.58%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
106.52% 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.
DP106.52%
EPS Next 2Y-14.43%
EPS Next 3Y-6.47%
113.89
-0.14 (-0.12%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.7%
Inst Owner Change1.12%
Ins Owners0.24%
Ins Owner Change1.86%
Market Cap105.70B
Analysts77.14
Price Target122.28 (7.37%)
Short Float %1.09%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend3.86
Dividend Growth(5Y)12.58%
DP106.52%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.73%
Min EPS beat(2)-4.74%
Max EPS beat(2)3.27%
EPS beat(4)3
Avg EPS beat(4)44.78%
Min EPS beat(4)-4.74%
Max EPS beat(4)111.94%
EPS beat(8)7
Avg EPS beat(8)37.9%
EPS beat(12)10
Avg EPS beat(12)28.94%
EPS beat(16)14
Avg EPS beat(16)51.01%
Revenue beat(2)0
Avg Revenue beat(2)-3.54%
Min Revenue beat(2)-3.74%
Max Revenue beat(2)-3.34%
Revenue beat(4)0
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-3.74%
Max Revenue beat(4)-1.95%
Revenue beat(8)1
Avg Revenue beat(8)-2.49%
Revenue beat(12)4
Avg Revenue beat(12)4.28%
Revenue beat(16)8
Avg Revenue beat(16)6.81%
PT rev (1m)1.08%
PT rev (3m)2.03%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)-1.14%
EPS NY rev (1m)4%
EPS NY rev (3m)5.16%
Revenue NQ rev (1m)2.34%
Revenue NQ rev (3m)2.53%
Revenue NY rev (1m)2.59%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.86 | ||
| Fwd PE | 38.88 | ||
| P/S | 12.35 | ||
| P/FCF | N/A | ||
| P/OCF | 20.43 | ||
| P/B | 2 | ||
| P/tB | 2 | ||
| EV/EBITDA | 23.3 |
EPS(TTM)3.69
EY3.24%
EPS(NY)2.93
Fwd EY2.57%
FCF(TTM)-1.22
FCFYN/A
OCF(TTM)5.57
OCFY4.89%
SpS9.22
BVpS56.82
TBVpS56.82
PEG (NY)N/A
PEG (5Y)3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 6.53% | ||
| ROCE | 3.66% | ||
| ROIC | 2.89% | ||
| ROICexc | 2.93% | ||
| ROICexgc | 3.11% | ||
| OM | 39.34% | ||
| PM (TTM) | 40.22% | ||
| GM | 75.35% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y5.02%
ROICexcg 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 | 0.66 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.79 | ||
| Cap/Depr | 240.97% | ||
| Cap/Sales | 73.61% | ||
| Interest Coverage | 4.13 | ||
| Cash Conversion | 86.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | N/A |
F-Score6
WACC7.18%
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)21.78%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%-33.7%
EPS Next Y-33.09%
EPS Next 2Y-14.43%
EPS Next 3Y-6.47%
EPS Next 5Y2.2%
Revenue 1Y (TTM)10.2%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%9.34%
Revenue Next Year11.1%
Revenue Next 2Y8.57%
Revenue Next 3Y7.76%
Revenue Next 5Y6.56%
EBIT growth 1Y24.43%
EBIT growth 3Y24.19%
EBIT growth 5Y25.58%
EBIT Next Year78.15%
EBIT Next 3Y27.92%
EBIT Next 5Y21.28%
FCF growth 1Y60.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.53%
OCF growth 3Y17.92%
OCF growth 5Y16.76%