TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRNO - US88146M1018 - REIT
61.04 USD
-1.47 (-2.35%)
61.04 USD
0 (0%)
Overall TRNO gets a fundamental rating of 6 out of 10. We evaluated TRNO against 124 industry peers in the Diversified REITs industry. TRNO scores excellent on profitability, but there are some minor concerns on its financial health. TRNO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- TRNO had positive earnings in the past year.
- In the past year TRNO had a positive cash flow from operations.
- In the past 5 years TRNO has always been profitable.
- In the past 5 years TRNO always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 5.99%, TRNO belongs to the best of the industry, outperforming 99.19% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 8.00%, TRNO is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
- TRNO has a Return On Invested Capital of 2.67%. This is comparable to the rest of the industry: TRNO outperforms 48.39% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TRNO is in line with the industry average of 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 8% | ||
| ROIC | 2.67% |
ROA(3y)4.65%
ROA(5y)4.12%
ROE(3y)6.34%
ROE(5y)5.65%
ROIC(3y)2.73%
ROIC(5y)2.65%
1.3 Margins
- TRNO has a Profit Margin of 72.18%. This is amongst the best in the industry. TRNO outperforms 100.00% of its industry peers.
- TRNO's Profit Margin has improved in the last couple of years.
- TRNO's Operating Margin of 39.36% is amongst the best of the industry. TRNO outperforms 84.68% of its industry peers.
- In the last couple of years the Operating Margin of TRNO has grown nicely.
- Looking at the Gross Margin, with a value of 74.53%, TRNO is in the better half of the industry, outperforming 71.77% of the companies in the same industry.
- In the last couple of years the Gross Margin of TRNO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.36% | ||
| PM (TTM) | 72.18% | ||
| GM | 74.53% |
OM growth 3Y-0.86%
OM growth 5Y2.39%
PM growth 3Y7.03%
PM growth 5Y8.26%
GM growth 3Y-0.14%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRNO is destroying value.
- Compared to 1 year ago, TRNO has more shares outstanding
- Compared to 5 years ago, TRNO has more shares outstanding
- The debt/assets ratio for TRNO has been reduced compared to a year ago.
2.2 Solvency
- TRNO has an Altman-Z score of 3.11. This indicates that TRNO is financially healthy and has little risk of bankruptcy at the moment.
- TRNO has a better Altman-Z score (3.11) than 96.77% of its industry peers.
- TRNO has a debt to FCF ratio of 8.73. This is a slightly negative value and a sign of low solvency as TRNO would need 8.73 years to pay back of all of its debts.
- TRNO has a better Debt to FCF ratio (8.73) than 93.55% of its industry peers.
- TRNO has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.26, TRNO belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.73 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.33
WACC8.12%
2.3 Liquidity
- TRNO has a Current Ratio of 0.15. This is a bad value and indicates that TRNO is not financially healthy enough and could expect problems in meeting its short term obligations.
- TRNO has a Current ratio of 0.15. This is amonst the worse of the industry: TRNO underperforms 93.55% of its industry peers.
- A Quick Ratio of 0.15 indicates that TRNO may have some problems paying its short term obligations.
- TRNO's Quick ratio of 0.15 is on the low side compared to the rest of the industry. TRNO is outperformed by 92.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 74.03% over the past year.
- TRNO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.70% yearly.
- Looking at the last year, TRNO shows a very strong growth in Revenue. The Revenue has grown by 21.13%.
- Measured over the past years, TRNO shows a quite strong growth in Revenue. The Revenue has been growing by 17.48% on average per year.
EPS 1Y (TTM)74.03%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%170.27%
Revenue 1Y (TTM)21.13%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%16.67%
3.2 Future
- Based on estimates for the next years, TRNO will show a decrease in Earnings Per Share. The EPS will decrease by -2.87% on average per year.
- Based on estimates for the next years, TRNO will show a quite strong growth in Revenue. The Revenue will grow by 16.62% on average per year.
EPS Next Y42.2%
EPS Next 2Y0.42%
EPS Next 3Y-2.87%
EPS Next 5YN/A
Revenue Next Year21.64%
Revenue Next 2Y14.6%
Revenue Next 3Y13.15%
Revenue Next 5Y16.62%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- TRNO is valuated rather expensively with a Price/Earnings ratio of 19.38.
- TRNO's Price/Earnings ratio is rather cheap when compared to the industry. TRNO is cheaper than 83.06% of the companies in the same industry.
- TRNO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 31.53, the valuation of TRNO can be described as expensive.
- 74.19% of the companies in the same industry are more expensive than TRNO, based on the Price/Forward Earnings ratio.
- TRNO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.38 | ||
| Fwd PE | 31.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TRNO is valued more expensive than 90.32% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRNO indicates a somewhat cheap valuation: TRNO is cheaper than 65.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.84 | ||
| EV/EBITDA | 26.32 |
4.3 Compensation for Growth
- TRNO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- TRNO has a very decent profitability rating, which may justify a higher PE ratio.
- TRNO's earnings are expected to decrease with -2.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.46
PEG (5Y)1.09
EPS Next 2Y0.42%
EPS Next 3Y-2.87%
5. Dividend
5.1 Amount
- TRNO has a Yearly Dividend Yield of 3.35%. Purely for dividend investing, there may be better candidates out there.
- TRNO's Dividend Yield is slightly below the industry average, which is at 6.82.
- TRNO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
- The dividend of TRNO is nicely growing with an annual growth rate of 13.58%!
- TRNO has been paying a dividend for at least 10 years, so it has a reliable track record.
- TRNO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.58%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- TRNO pays out 62.29% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of TRNO has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP62.29%
EPS Next 2Y0.42%
EPS Next 3Y-2.87%
TERRENO REALTY CORP / TRNO FAQ
What is the ChartMill fundamental rating of TERRENO REALTY CORP (TRNO) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TRNO.
Can you provide the valuation status for TERRENO REALTY CORP?
ChartMill assigns a valuation rating of 5 / 10 to TERRENO REALTY CORP (TRNO). This can be considered as Fairly Valued.
Can you provide the profitability details for TERRENO REALTY CORP?
TERRENO REALTY CORP (TRNO) has a profitability rating of 7 / 10.
What are the PE and PB ratios of TERRENO REALTY CORP (TRNO) stock?
The Price/Earnings (PE) ratio for TERRENO REALTY CORP (TRNO) is 19.38 and the Price/Book (PB) ratio is 1.58.
How sustainable is the dividend of TERRENO REALTY CORP (TRNO) stock?
The dividend rating of TERRENO REALTY CORP (TRNO) is 5 / 10 and the dividend payout ratio is 62.29%.