TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
NYSE:TRNO - New York Stock Exchange, Inc. - US88146M1018 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to TRNO. TRNO was compared to 129 industry peers in the Diversified REITs industry. While TRNO has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, TRNO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TRNO had positive earnings in the past year.
TRNO had a positive operating cash flow in the past year.
Each year in the past 5 years TRNO has been profitable.
Each year in the past 5 years TRNO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.61%, TRNO belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.55%, TRNO is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
TRNO has a Return On Invested Capital (2.61%) which is in line with 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 3.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 4.55% | ||
| ROIC | 2.61% |
ROA(3y)4.35%
ROA(5y)3.88%
ROE(3y)6.08%
ROE(5y)5.37%
ROIC(3y)2.7%
ROIC(5y)2.6%
1.3 Margins
The Profit Margin of TRNO (45.21%) is better than 93.65% of its industry peers.
TRNO's Profit Margin has improved in the last couple of years.
The Operating Margin of TRNO (39.77%) is better than 85.71% of its industry peers.
TRNO's Operating Margin has improved in the last couple of years.
TRNO has a Gross Margin of 74.85%. This is in the better half of the industry: TRNO outperforms 71.43% of its industry peers.
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 | 39.77% | ||
| PM (TTM) | 45.21% | ||
| GM | 74.85% |
OM growth 3Y3.99%
OM growth 5Y4.86%
PM growth 3Y3.12%
PM growth 5Y2.36%
GM growth 3Y0.82%
GM growth 5Y0.52%
2. Health
2.1 Basic Checks
TRNO 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 TRNO has been increased compared to 1 year ago.
TRNO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TRNO has been reduced compared to a year ago.
2.2 Solvency
TRNO has an Altman-Z score of 4.36. This indicates that TRNO is financially healthy and has little risk of bankruptcy at the moment.
TRNO's Altman-Z score of 4.36 is amongst the best of the industry. TRNO outperforms 98.41% of its industry peers.
TRNO has a debt to FCF ratio of 40.19. This is a negative value and a sign of low solvency as TRNO would need 40.19 years to pay back of all of its debts.
TRNO has a Debt to FCF ratio (40.19) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.19 indicates that TRNO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, TRNO belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 40.19 | ||
| Altman-Z | 4.36 |
ROIC/WACC0.31
WACC8.56%
2.3 Liquidity
TRNO has a Current Ratio of 1.38. This is a normal value and indicates that TRNO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.38, TRNO perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
TRNO has a Quick Ratio of 1.38. This is a normal value and indicates that TRNO is financially healthy and should not expect problems in meeting its short term obligations.
TRNO has a Quick ratio of 1.38. This is comparable to the rest of the industry: TRNO outperforms 57.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for TRNO have decreased by -4.74% in the last year.
TRNO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.76% yearly.
The Revenue has grown by 16.70% in the past year. This is quite good.
The Revenue has been growing by 16.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.74%
EPS 3Y23.74%
EPS 5Y10.76%
EPS Q2Q%2.78%
Revenue 1Y (TTM)16.7%
Revenue growth 3Y20.08%
Revenue growth 5Y16.36%
Sales Q2Q%20.16%
3.2 Future
Based on estimates for the next years, TRNO will show a small growth in Earnings Per Share. The EPS will grow by 1.40% on average per year.
The Revenue is expected to grow by 17.82% on average over the next years. This is quite good.
EPS Next Y-13.87%
EPS Next 2Y-3.7%
EPS Next 3Y1.4%
EPS Next 5YN/A
Revenue Next Year18.59%
Revenue Next 2Y17.41%
Revenue Next 3Y15.81%
Revenue Next 5Y17.82%
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
The Price/Earnings ratio is 36.77, which means the current valuation is very expensive for TRNO.
TRNO's Price/Earnings is on the same level as the industry average.
TRNO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.28.
Based on the Price/Forward Earnings ratio of 39.86, the valuation of TRNO can be described as expensive.
Based on the Price/Forward Earnings ratio, TRNO is valued a bit cheaper than 68.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRNO to the average of the S&P500 Index (91.29), we can say TRNO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.77 | ||
| Fwd PE | 39.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRNO indicates a rather expensive valuation: TRNO more expensive than 94.44% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRNO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 396.92 | ||
| EV/EBITDA | 29.81 |
4.3 Compensation for Growth
The decent profitability rating of TRNO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.42
EPS Next 2Y-3.7%
EPS Next 3Y1.4%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 3.03%.
Compared to an average industry Dividend Yield of 18.24, TRNO is paying slightly less dividend.
TRNO's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
The dividend of TRNO is nicely growing with an annual growth rate of 13.41%!
TRNO has paid a dividend for at least 10 years, which is a reliable track record.
TRNO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.41%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
TRNO pays out 99.58% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TRNO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP99.58%
EPS Next 2Y-3.7%
EPS Next 3Y1.4%
TERRENO REALTY CORP
NYSE:TRNO (1/30/2025, 1:40:48 PM)
66.55
+1.53 (+2.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners109.89%
Inst Owner Change-0.2%
Ins Owners2.01%
Ins Owner Change1.52%
Market Cap6.64B
Analysts75.45
Price Target71.6 (7.59%)
Short Float %8.27%
Short Ratio5.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend1.66
Dividend Growth(5Y)13.41%
DP99.58%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.25%
Min EPS beat(2)-0.16%
Max EPS beat(2)2.66%
EPS beat(4)3
Avg EPS beat(4)24.05%
Min EPS beat(4)-0.16%
Max EPS beat(4)83.74%
EPS beat(8)7
Avg EPS beat(8)39.67%
EPS beat(12)10
Avg EPS beat(12)62.75%
EPS beat(16)14
Avg EPS beat(16)49.19%
Revenue beat(2)1
Avg Revenue beat(2)1.98%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)4.04%
Revenue beat(4)2
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-4.47%
Max Revenue beat(4)4.04%
Revenue beat(8)3
Avg Revenue beat(8)0.04%
Revenue beat(12)4
Avg Revenue beat(12)0.12%
Revenue beat(16)8
Avg Revenue beat(16)0.56%
PT rev (1m)0.19%
PT rev (3m)-3.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.97%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.77 | ||
| Fwd PE | 39.86 | ||
| P/S | 18.17 | ||
| P/FCF | 396.92 | ||
| P/OCF | 30.11 | ||
| P/B | 1.83 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 29.81 |
EPS(TTM)1.81
EY2.72%
EPS(NY)1.67
Fwd EY2.51%
FCF(TTM)0.17
FCFY0.25%
OCF(TTM)2.21
OCFY3.32%
SpS3.66
BVpS36.41
TBVpS36.41
PEG (NY)N/A
PEG (5Y)3.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 4.55% | ||
| ROCE | 3.31% | ||
| ROIC | 2.61% | ||
| ROICexc | 2.77% | ||
| ROICexgc | 2.83% | ||
| OM | 39.77% | ||
| PM (TTM) | 45.21% | ||
| GM | 74.85% | ||
| FCFM | 4.58% |
ROA(3y)4.35%
ROA(5y)3.88%
ROE(3y)6.08%
ROE(5y)5.37%
ROIC(3y)2.7%
ROIC(5y)2.6%
ROICexc(3y)2.82%
ROICexc(5y)2.72%
ROICexgc(3y)2.87%
ROICexgc(5y)2.78%
ROCE(3y)3.42%
ROCE(5y)3.28%
ROICexcg growth 3Y2.16%
ROICexcg growth 5Y4.52%
ROICexc growth 3Y2.12%
ROICexc growth 5Y5.16%
OM growth 3Y3.99%
OM growth 5Y4.86%
PM growth 3Y3.12%
PM growth 5Y2.36%
GM growth 3Y0.82%
GM growth 5Y0.52%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 40.19 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 235.23% | ||
| Cap/Sales | 55.74% | ||
| Interest Coverage | 4.5 | ||
| Cash Conversion | 95.03% | ||
| Profit Quality | 10.12% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 4.36 |
F-Score5
WACC8.56%
ROIC/WACC0.31
Cap/Depr(3y)168.33%
Cap/Depr(5y)145.96%
Cap/Sales(3y)38.73%
Cap/Sales(5y)34.6%
Profit Quality(3y)35.99%
Profit Quality(5y)49.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.74%
EPS 3Y23.74%
EPS 5Y10.76%
EPS Q2Q%2.78%
EPS Next Y-13.87%
EPS Next 2Y-3.7%
EPS Next 3Y1.4%
EPS Next 5YN/A
Revenue 1Y (TTM)16.7%
Revenue growth 3Y20.08%
Revenue growth 5Y16.36%
Sales Q2Q%20.16%
Revenue Next Year18.59%
Revenue Next 2Y17.41%
Revenue Next 3Y15.81%
Revenue Next 5Y17.82%
EBIT growth 1Y14.42%
EBIT growth 3Y24.86%
EBIT growth 5Y22.02%
EBIT Next Year88.66%
EBIT Next 3Y37.04%
EBIT Next 5Y32.07%
FCF growth 1Y-65.8%
FCF growth 3Y-63.05%
FCF growth 5Y-39.92%
OCF growth 1Y54.35%
OCF growth 3Y21.13%
OCF growth 5Y18.28%