PROLOGIS INC (PLD)
US74340W1036 - REIT
Taking everything into account, PLD scores 5 out of 10 in our fundamental rating. PLD was compared to 129 industry peers in the Diversified REITs industry. PLD scores excellent on profitability, but 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 3.21% is fine compared to the rest of the industry. PLD outperforms 79.53% of its industry peers.
PLD has a better Return On Equity (5.80%) than 76.38% of its industry peers.
With a Return On Invested Capital value of 2.39%, PLD perfoms like the industry average, outperforming 43.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PLD is in line with the industry average of 3.08%.
The 3 year average ROIC (2.38%) for PLD is below the current ROIC(2.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 5.8% | ||
| ROIC | 2.39% |
ROA(3y)4.04%
ROA(5y)3.73%
ROE(3y)6.94%
ROE(5y)6.47%
ROIC(3y)2.38%
ROIC(5y)2.26%
1.3 Margins
PLD has a Profit Margin of 39.01%. This is amongst the best in the industry. PLD outperforms 91.34% of its industry peers.
PLD's Profit Margin has declined in the last couple of years.
PLD's Operating Margin of 35.84% is amongst the best of the industry. PLD outperforms 81.89% of its industry peers.
In the last couple of years the Operating Margin of PLD has grown nicely.
Looking at the Gross Margin, with a value of 74.34%, PLD is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
PLD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.84% | ||
| PM (TTM) | 39.01% | ||
| GM | 74.34% |
OM growth 3Y6.65%
OM growth 5Y4.94%
PM growth 3Y4.67%
PM growth 5Y-8.27%
GM growth 3Y0.59%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PLD is destroying value.
Compared to 1 year ago, PLD has about the same amount of shares outstanding.
The number of shares outstanding for PLD has been increased compared to 5 years ago.
The debt/assets ratio for PLD is higher compared to a year ago.
2.2 Solvency
PLD has an Altman-Z score of 1.63. This is a bad value and indicates that PLD is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PLD (1.63) is better than 91.34% 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.
The Debt to Equity ratio of PLD (0.61) is better than 82.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.63 |
ROIC/WACC0.32
WACC7.51%
2.3 Liquidity
A Current Ratio of 0.32 indicates that PLD may have some problems paying its short term obligations.
PLD's Current ratio of 0.32 is on the low side compared to the rest of the industry. PLD is outperformed by 94.49% of its industry peers.
PLD has a Quick 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 Quick ratio of 0.32. This is amonst the worse of the industry: PLD underperforms 93.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
PLD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.16%.
PLD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.99% yearly.
PLD shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
PLD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.40% yearly.
EPS 1Y (TTM)2.16%
EPS 3Y17.66%
EPS 5Y2.99%
EPS Q2Q%35%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y21.82%
Revenue growth 5Y23.4%
Sales Q2Q%6.96%
3.2 Future
PLD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.10% yearly.
Based on estimates for the next years, PLD will show a quite strong growth in Revenue. The Revenue will grow by 10.57% on average per year.
EPS Next Y16.5%
EPS Next 2Y4.03%
EPS Next 3Y-2.46%
EPS Next 5Y6.1%
Revenue Next Year10.68%
Revenue Next 2Y8.91%
Revenue Next 3Y8.49%
Revenue Next 5Y10.57%
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 accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.80 indicates a quite expensive valuation of PLD.
Compared to the rest of the industry, the Price/Earnings ratio of PLD indicates a somewhat cheap valuation: PLD is cheaper than 61.42% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PLD to the average of the S&P500 Index (28.96), we can say PLD is valued slightly more expensively.
With a Price/Forward Earnings ratio of 32.35, PLD can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PLD is valued a bit cheaper than 77.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, PLD is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.8 | ||
| Fwd PE | 32.35 |
4.2 Price Multiples
92.13% 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 | 25.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 -2.46% in the coming years.
PEG (NY)2.11
PEG (5Y)11.66
EPS Next 2Y4.03%
EPS Next 3Y-2.46%
5. Dividend
5.1 Amount
PLD has a Yearly Dividend Yield of 3.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.55, PLD is paying slightly less dividend.
PLD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
The dividend of PLD is nicely growing with an annual growth rate of 12.57%!
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
5.3 Sustainability
113.26% 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.
DP113.26%
EPS Next 2Y4.03%
EPS Next 3Y-2.46%
PROLOGIS INC
NYSE:PLD (11/22/2024, 1:41:08 PM)
115.18
+1.21 (+1.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap106.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.8 | ||
| Fwd PE | 32.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.11
PEG (5Y)11.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 5.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.84% | ||
| PM (TTM) | 39.01% | ||
| GM | 74.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.16%
EPS 3Y17.66%
EPS 5Y
EPS Q2Q%
EPS Next Y16.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.05%
Revenue growth 3Y21.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y