PROLOGIS INC (PLD) Stock Fundamental Analysis
NYSE:PLD - New York Stock Exchange, Inc. - US74340W1036 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to PLD. PLD was compared to 130 industry peers in the Diversified REITs industry. PLD has an excellent profitability rating, 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 has a Return On Assets of 3.89%. This is amongst the best in the industry. PLD outperforms 88.46% of its industry peers.
PLD has a better Return On Equity (6.98%) than 80.77% of its industry peers.
The Return On Invested Capital of PLD (2.75%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PLD is in line with the industry average of 3.16%.
The last Return On Invested Capital (2.75%) for PLD is above the 3 year average (2.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 6.98% | ||
| ROIC | 2.75% |
ROA(3y)3.67%
ROA(5y)3.73%
ROE(3y)6.32%
ROE(5y)6.47%
ROIC(3y)2.52%
ROIC(5y)2.39%
1.3 Margins
PLD has a Profit Margin of 44.52%. This is amongst the best in the industry. PLD outperforms 94.62% of its industry peers.
PLD's Profit Margin has been stable in the last couple of years.
The Operating Margin of PLD (38.76%) is better than 83.85% of its industry peers.
In the last couple of years the Operating Margin of PLD has grown nicely.
PLD has a Gross Margin of 75.27%. This is in the better half of the industry: PLD outperforms 73.08% 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 | 38.76% | ||
| PM (TTM) | 44.52% | ||
| GM | 75.27% |
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
PLD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PLD remains at a similar level compared to 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
PLD has an Altman-Z score of 1.58. This is a bad value and indicates that PLD is not financially healthy and even has some risk of bankruptcy.
PLD's Altman-Z score of 1.58 is amongst the best of the industry. PLD outperforms 90.00% of its industry peers.
PLD has a Debt/Equity ratio of 0.60. This is a neutral value indicating PLD is somewhat dependend on debt financing.
PLD has a better Debt to Equity ratio (0.60) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.58 |
ROIC/WACC0.37
WACC7.35%
2.3 Liquidity
A Current Ratio of 0.25 indicates that PLD may have some problems paying its short term obligations.
PLD has a worse Current ratio (0.25) than 86.92% of its industry peers.
PLD has a Quick Ratio of 0.25. 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 Quick ratio, with a value of 0.25, PLD is doing worse than 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
PLD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.96%, which is quite good.
PLD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.30% yearly.
The Revenue has been growing slightly by 2.11% in the past year.
The Revenue has been growing by 19.75% on average over the past years. This is quite good.
EPS 1Y (TTM)16.96%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%0%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%8.73%
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.
The Revenue is expected to grow by 6.81% on average over the next years.
EPS Next Y-35.66%
EPS Next 2Y-14.66%
EPS Next 3Y-6.47%
EPS Next 5Y2.2%
Revenue Next Year9.66%
Revenue Next 2Y7.79%
Revenue Next 3Y7.31%
Revenue Next 5Y6.81%
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
The Price/Earnings ratio is 27.00, which means the current valuation is very expensive for PLD.
Compared to the rest of the industry, the Price/Earnings ratio of PLD indicates a somewhat cheap valuation: PLD is cheaper than 72.31% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. PLD is around the same levels.
The Price/Forward Earnings ratio is 37.08, which means the current valuation is very expensive for PLD.
66.15% of the companies in the same industry are more expensive than PLD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. PLD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.01 | ||
| Fwd PE | 37.08 |
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 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.55 |
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 -6.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.62
EPS Next 2Y-14.66%
EPS Next 3Y-6.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.74%, PLD has a reasonable but not impressive dividend return.
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 better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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
96.94% of the earnings are spent on dividend by PLD. This is not a sustainable payout ratio.
The dividend of PLD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP96.94%
EPS Next 2Y-14.66%
EPS Next 3Y-6.47%
108.02
-0.29 (-0.27%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change1.01%
Ins Owners0.24%
Ins Owner Change3%
Market Cap100.23B
Analysts75.71
Price Target119.85 (10.95%)
Short Float %1.14%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend3.86
Dividend Growth(5Y)12.58%
DP96.94%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)57.61%
Min EPS beat(2)3.27%
Max EPS beat(2)111.94%
EPS beat(4)4
Avg EPS beat(4)59.31%
Min EPS beat(4)3.27%
Max EPS beat(4)111.94%
EPS beat(8)8
Avg EPS beat(8)42.12%
EPS beat(12)11
Avg EPS beat(12)31.89%
EPS beat(16)15
Avg EPS beat(16)56.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.65%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-3.5%
Max Revenue beat(4)-1.95%
Revenue beat(8)1
Avg Revenue beat(8)-2.35%
Revenue beat(12)5
Avg Revenue beat(12)5.74%
Revenue beat(16)9
Avg Revenue beat(16)7.74%
PT rev (1m)-1.44%
PT rev (3m)-9.47%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)2.08%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.01 | ||
| Fwd PE | 37.08 | ||
| P/S | 11.95 | ||
| P/FCF | N/A | ||
| P/OCF | 19.98 | ||
| P/B | 1.87 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 22.55 |
EPS(TTM)4
EY3.7%
EPS(NY)2.91
Fwd EY2.7%
FCF(TTM)-1.74
FCFYN/A
OCF(TTM)5.41
OCFY5.01%
SpS9.04
BVpS57.62
TBVpS57.62
PEG (NY)N/A
PEG (5Y)2.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 6.98% | ||
| ROCE | 3.48% | ||
| ROIC | 2.75% | ||
| ROICexc | 2.77% | ||
| ROICexgc | 2.91% | ||
| OM | 38.76% | ||
| PM (TTM) | 44.52% | ||
| GM | 75.27% | ||
| 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-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.44 | ||
| Cap/Depr | 255.65% | ||
| Cap/Sales | 79.13% | ||
| Interest Coverage | 4.22 | ||
| Cash Conversion | 85.85% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 1.58 |
F-Score6
WACC7.35%
ROIC/WACC0.37
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)16.96%
EPS 3Y0.51%
EPS 5Y10.3%
EPS Q2Q%0%
EPS Next Y-35.66%
EPS Next 2Y-14.66%
EPS Next 3Y-6.47%
EPS Next 5Y2.2%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y19.89%
Revenue growth 5Y19.75%
Sales Q2Q%8.73%
Revenue Next Year9.66%
Revenue Next 2Y7.79%
Revenue Next 3Y7.31%
Revenue Next 5Y6.81%
EBIT growth 1Y2.45%
EBIT growth 3Y24.19%
EBIT growth 5Y25.58%
EBIT Next Year78.02%
EBIT Next 3Y26.6%
EBIT Next 5Y24.41%
FCF growth 1Y-22.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.05%
OCF growth 3Y17.92%
OCF growth 5Y16.76%