PROLOGIS INC (PLD) Stock Fundamental Analysis
USA - NYSE:PLD - US74340W1036 - REIT
124.08 USD
+2.91 (+2.4%)
125.8 USD
+1.72 (+1.39%)
Overall PLD gets a fundamental rating of 5 out of 10. We evaluated PLD against 129 industry peers in the Diversified REITs industry. PLD has an excellent profitability rating, but 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.
Each year in the past 5 years PLD has been profitable.
Each year in the past 5 years PLD had a positive operating cash flow.
1.2 Ratios
PLD has a better Return On Assets (3.52%) than 82.17% of its industry peers.
Looking at the Return On Equity, with a value of 6.53%, PLD is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
PLD has a Return On Invested Capital (2.80%) which is in line with 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 3.01%.
The 3 year average ROIC (2.50%) for PLD is below the current ROIC(2.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 6.53% | ||
| ROIC | 2.8% |
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's Profit Margin of 40.22% is amongst the best of the industry. PLD outperforms 91.47% of its industry peers.
PLD's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 39.34%, PLD belongs to the top of the industry, outperforming 85.27% of the companies in the same industry.
PLD's Operating Margin has improved in the last couple of years.
The Gross Margin of PLD (75.35%) is better than 73.64% 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 | 39.34% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PLD is destroying value.
PLD has more shares outstanding than it did 1 year ago.
PLD has more shares outstanding than it did 5 years ago.
PLD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that PLD is in the distress zone and has some risk of bankruptcy.
PLD has a Altman-Z score of 1.70. This is amongst the best in the industry. PLD outperforms 92.25% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that PLD is somewhat dependend on debt financing.
PLD has a Debt to Equity ratio of 0.65. This is amongst the best in the industry. PLD outperforms 82.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC0.39
WACC7.26%
2.3 Liquidity
PLD has a Current Ratio of 0.39. This is a bad value and indicates that PLD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PLD (0.39) is worse than 84.50% of its industry peers.
PLD has a Quick Ratio of 0.39. This is a bad value and indicates that PLD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PLD (0.39) is worse than 83.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
PLD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.87%, which is quite impressive.
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.
Looking at the last year, PLD shows a quite strong growth in Revenue. The Revenue has grown by 10.75% in the last year.
The Revenue has been growing by 19.75% on average over the past years. This is quite good.
EPS 1Y (TTM)23.87%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%37.96%
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 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-34.22%
EPS Next 2Y-13.84%
EPS Next 3Y-5.5%
EPS Next 5Y2.2%
Revenue Next Year11.08%
Revenue Next 2Y8.51%
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
The Price/Earnings ratio is 30.26, which means the current valuation is very expensive for PLD.
63.57% of the companies in the same industry are more expensive than PLD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PLD to the average of the S&P500 Index (27.40), we can say PLD is valued inline with the index average.
With a Price/Forward Earnings ratio of 41.79, 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 62.02% of the companies listed in the same industry.
PLD is valuated expensively when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.26 | ||
| Fwd PE | 41.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLD is valued expensively inside the industry as 89.92% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.88 |
4.3 Compensation for Growth
PLD has an outstanding profitability rating, which may justify a higher PE ratio.
PLD's earnings are expected to decrease with -5.50% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.94
EPS Next 2Y-13.84%
EPS Next 3Y-5.5%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 6.81, PLD is paying slightly less dividend.
PLD's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
On average, the dividend of PLD grows each year by 12.58%, 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)12.58%
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-13.84%
EPS Next 3Y-5.5%
124.08
+2.91 (+2.4%)
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 Change0.05%
Ins Owners0.24%
Ins Owner Change1.76%
Market Cap115.23B
Analysts78.57
Price Target122.91 (-0.94%)
Short Float %1.27%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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)0.51%
PT rev (3m)1.55%
EPS NQ rev (1m)1.46%
EPS NQ rev (3m)1.07%
EPS NY rev (1m)-1.7%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.26 | ||
| Fwd PE | 41.79 | ||
| P/S | 13.46 | ||
| P/FCF | N/A | ||
| P/OCF | 22.28 | ||
| P/B | 2.19 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 24.88 |
EPS(TTM)4.1
EY3.3%
EPS(NY)2.97
Fwd EY2.39%
FCF(TTM)-1.22
FCFYN/A
OCF(TTM)5.57
OCFY4.49%
SpS9.22
BVpS56.78
TBVpS56.78
PEG (NY)N/A
PEG (5Y)2.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 6.53% | ||
| ROCE | 3.55% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.83% | ||
| ROICexgc | 2.98% | ||
| 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-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.72 | ||
| Cap/Depr | 240.97% | ||
| Cap/Sales | 73.61% | ||
| Interest Coverage | 4.13 | ||
| Cash Conversion | 86.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 1.7 |
F-Score7
WACC7.26%
ROIC/WACC0.39
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)23.87%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%37.96%
EPS Next Y-34.22%
EPS Next 2Y-13.84%
EPS Next 3Y-5.5%
EPS Next 5Y2.2%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%8.28%
Revenue Next Year11.08%
Revenue Next 2Y8.51%
Revenue Next 3Y7.76%
Revenue Next 5Y6.56%
EBIT growth 1Y24.43%
EBIT growth 3Y24.19%
EBIT growth 5Y25.58%
EBIT Next Year78.72%
EBIT Next 3Y26.89%
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%