TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRNO - US88146M1018 - REIT
62.28 USD
-0.14 (-0.22%)
62.28 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TRNO. TRNO was compared to 128 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
In the past year TRNO was profitable.
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
TRNO has a Return On Assets of 5.99%. This is amongst the best in the industry. TRNO outperforms 99.22% of its industry peers.
The Return On Equity of TRNO (8.00%) is better than 78.91% of its industry peers.
The Return On Invested Capital of TRNO (2.67%) is comparable to the rest of the industry.
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 better Profit Margin (72.18%) than 100.00% of its industry peers.
TRNO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 39.36%, TRNO belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
TRNO's Operating Margin has improved in the last couple of years.
TRNO's Gross Margin of 74.53% is fine compared to the rest of the industry. TRNO outperforms 71.88% of its industry peers.
TRNO's Gross Margin has been stable in the last couple of years.
| 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
TRNO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TRNO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TRNO has been increased compared to 5 years ago.
The debt/assets ratio for TRNO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.10 indicates that TRNO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.10, TRNO belongs to the top of the industry, outperforming 97.66% of the companies in the same industry.
The Debt to FCF ratio of TRNO is 8.73, which is on the high side as it means it would take TRNO, 8.73 years of fcf income to pay off all of its debts.
TRNO has a better Debt to FCF ratio (8.73) than 92.97% 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.
Looking at the Debt to Equity ratio, with a value of 0.26, TRNO belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.73 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.33
WACC8.04%
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 94.53% of its industry peers.
TRNO has a Quick 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's Quick ratio of 0.15 is on the low side compared to the rest of the industry. TRNO is outperformed by 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
TRNO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 74.03%, which is quite impressive.
Measured over the past years, TRNO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.70% on average per year.
Looking at the last year, TRNO shows a very strong growth in Revenue. The Revenue has grown by 21.13%.
TRNO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.48% yearly.
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 -0.58% on average per year.
The Revenue is expected to grow by 16.62% on average over the next years. This is quite good.
EPS Next Y13.51%
EPS Next 2Y-9.55%
EPS Next 3Y-0.58%
EPS Next 5YN/A
Revenue Next Year20.96%
Revenue Next 2Y15.5%
Revenue Next 3Y13.61%
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
The Price/Earnings ratio is 19.77, which indicates a rather expensive current valuation of TRNO.
Compared to the rest of the industry, the Price/Earnings ratio of TRNO indicates a rather cheap valuation: TRNO is cheaper than 80.47% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.49. TRNO is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 39.65, TRNO can be considered very expensive at the moment.
64.84% of the companies in the same industry are more expensive than TRNO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TRNO to the average of the S&P500 Index (23.69), we can say TRNO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 39.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRNO is valued expensively inside the industry as 90.63% of the companies are valued cheaper.
TRNO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRNO is cheaper than 63.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.94 | ||
| EV/EBITDA | 26.24 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TRNO may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)1.12
EPS Next 2Y-9.55%
EPS Next 3Y-0.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.33%, TRNO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.59, TRNO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, TRNO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of TRNO is nicely growing with an annual growth rate of 13.58%!
TRNO has paid a dividend for at least 10 years, which is 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
62.29% of the earnings are spent on dividend by TRNO. 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 2Y-9.55%
EPS Next 3Y-0.58%
62.28
-0.14 (-0.22%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners110.32%
Inst Owner Change-0.04%
Ins Owners1.93%
Ins Owner Change2.83%
Market Cap6.44B
Revenue(TTM)442.61M
Net Income(TTM)319.48M
Analysts75.83
Price Target67.26 (8%)
Short Float %5.59%
Short Ratio8.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend1.87
Dividend Growth(5Y)13.58%
DP62.29%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)153.09%
Min EPS beat(2)136.35%
Max EPS beat(2)169.84%
EPS beat(4)4
Avg EPS beat(4)111.37%
Min EPS beat(4)29.8%
Max EPS beat(4)169.84%
EPS beat(8)7
Avg EPS beat(8)67.71%
EPS beat(12)11
Avg EPS beat(12)63.57%
EPS beat(16)14
Avg EPS beat(16)74.9%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-0.8%
Revenue beat(4)0
Avg Revenue beat(4)-0.85%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-0.41%
Revenue beat(12)3
Avg Revenue beat(12)-0.26%
Revenue beat(16)4
Avg Revenue beat(16)-0.12%
PT rev (1m)4.28%
PT rev (3m)5.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.45%
EPS NY rev (1m)14.46%
EPS NY rev (3m)12.46%
Revenue NQ rev (1m)1.85%
Revenue NQ rev (3m)3.61%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 39.65 | ||
| P/S | 14.55 | ||
| P/FCF | 54.94 | ||
| P/OCF | 25.46 | ||
| P/B | 1.61 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 26.24 |
EPS(TTM)3.15
EY5.06%
EPS(NY)1.57
Fwd EY2.52%
FCF(TTM)1.13
FCFY1.82%
OCF(TTM)2.45
OCFY3.93%
SpS4.28
BVpS38.64
TBVpS38.64
PEG (NY)1.46
PEG (5Y)1.12
Graham Number52.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 8% | ||
| ROCE | 3.38% | ||
| ROIC | 2.67% | ||
| ROICexc | 2.69% | ||
| ROICexgc | 2.74% | ||
| OM | 39.36% | ||
| PM (TTM) | 72.18% | ||
| GM | 74.53% | ||
| FCFM | 26.48% |
ROA(3y)4.65%
ROA(5y)4.12%
ROE(3y)6.34%
ROE(5y)5.65%
ROIC(3y)2.73%
ROIC(5y)2.65%
ROICexc(3y)2.78%
ROICexc(5y)2.75%
ROICexgc(3y)2.84%
ROICexgc(5y)2.81%
ROCE(3y)3.45%
ROCE(5y)3.35%
ROICexgc growth 3Y-1.28%
ROICexgc growth 5Y1.14%
ROICexc growth 3Y-1.28%
ROICexc growth 5Y1.26%
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%
F-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.73 | ||
| Debt/EBITDA | 3.61 | ||
| Cap/Depr | 124.22% | ||
| Cap/Sales | 30.66% | ||
| Interest Coverage | 9.91 | ||
| Cash Conversion | 89.23% | ||
| Profit Quality | 36.69% | ||
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 3.1 |
F-Score4
WACC8.04%
ROIC/WACC0.33
Cap/Depr(3y)188.52%
Cap/Depr(5y)155.5%
Cap/Sales(3y)44.39%
Cap/Sales(5y)36.62%
Profit Quality(3y)20.15%
Profit Quality(5y)43.35%
High Growth Momentum
Growth
EPS 1Y (TTM)74.03%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%170.27%
EPS Next Y13.51%
EPS Next 2Y-9.55%
EPS Next 3Y-0.58%
EPS Next 5YN/A
Revenue 1Y (TTM)21.13%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%16.67%
Revenue Next Year20.96%
Revenue Next 2Y15.5%
Revenue Next 3Y13.61%
Revenue Next 5Y16.62%
EBIT growth 1Y19.87%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year101.57%
EBIT Next 3Y37.84%
EBIT Next 5Y29.83%
FCF growth 1Y151.19%
FCF growth 3Y-4.92%
FCF growth 5Y11.51%
OCF growth 1Y44.66%
OCF growth 3Y20.74%
OCF growth 5Y19.7%
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.
What is the valuation status of TERRENO REALTY CORP (TRNO) stock?
ChartMill assigns a valuation rating of 4 / 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 is the valuation of TERRENO REALTY CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TERRENO REALTY CORP (TRNO) is 19.77 and the Price/Book (PB) ratio is 1.61.
How financially healthy is TERRENO REALTY CORP?
The financial health rating of TERRENO REALTY CORP (TRNO) is 5 / 10.