TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
USA - NYSE:TRNO - US88146M1018 - REIT
60.98 USD
+1.11 (+1.85%)
60.98 USD
0 (0%)
Overall TRNO gets a fundamental rating of 5 out of 10. We evaluated TRNO against 129 industry peers in the Diversified REITs industry. TRNO scores excellent on profitability, but 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
In the past year TRNO was profitable.
In the past year TRNO had a positive cash flow from operations.
TRNO had positive earnings in each of the past 5 years.
Each year in the past 5 years TRNO had a positive operating cash flow.
1.2 Ratios
TRNO's Return On Assets of 5.08% is amongst the best of the industry. TRNO outperforms 94.57% of its industry peers.
Looking at the Return On Equity, with a value of 6.42%, TRNO is in the better half of the industry, outperforming 75.19% of the companies in the same industry.
The Return On Invested Capital of TRNO (2.71%) is comparable to the rest of the industry.
TRNO had an Average Return On Invested Capital over the past 3 years of 2.73%. This is in line with the industry average of 3.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 6.42% | ||
| ROIC | 2.71% |
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 59.40%. This is amongst the best in the industry. TRNO outperforms 98.45% of its industry peers.
In the last couple of years the Profit Margin of TRNO has grown nicely.
The Operating Margin of TRNO (38.82%) is better than 83.72% of its industry peers.
TRNO's Operating Margin has improved in the last couple of years.
The Gross Margin of TRNO (74.15%) is better than 68.99% of its industry peers.
TRNO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.82% | ||
| PM (TTM) | 59.4% | ||
| GM | 74.15% |
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.
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.
Compared to 1 year ago, TRNO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.80 indicates that TRNO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.80, TRNO belongs to the top of the industry, outperforming 99.22% of the companies in the same industry.
The Debt to FCF ratio of TRNO is 8.51, which is on the high side as it means it would take TRNO, 8.51 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 8.51, TRNO belongs to the best of the industry, outperforming 92.25% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that TRNO is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.19, TRNO belongs to the best of the industry, outperforming 98.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 3.8 |
ROIC/WACC0.34
WACC7.89%
2.3 Liquidity
A Current Ratio of 0.78 indicates that TRNO may have some problems paying its short term obligations.
The Current ratio of TRNO (0.78) is worse than 60.47% of its industry peers.
A Quick Ratio of 0.78 indicates that TRNO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, TRNO is in line with its industry, outperforming 40.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
TRNO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, which is quite impressive.
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 22.17%.
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)40%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%143.24%
Revenue 1Y (TTM)22.17%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%19.08%
3.2 Future
The Earnings Per Share is expected to decrease by -1.30% on average over the next years.
TRNO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.00% yearly.
EPS Next Y-0.83%
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
EPS Next 5YN/A
Revenue Next Year19.7%
Revenue Next 2Y15.21%
Revenue Next 3Y13.7%
Revenue Next 5Y18%
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 24.20, which indicates a rather expensive current valuation of TRNO.
TRNO's Price/Earnings ratio is a bit cheaper when compared to the industry. TRNO is cheaper than 76.74% of the companies in the same industry.
TRNO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.29.
A Price/Forward Earnings ratio of 39.42 indicates a quite expensive valuation of TRNO.
65.12% of the companies in the same industry are more expensive than TRNO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.85. TRNO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 39.42 |
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 90.70% of the companies listed in the same industry.
TRNO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.22 | ||
| EV/EBITDA | 25.15 |
4.3 Compensation for Growth
The decent profitability rating of TRNO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 3.61%.
Compared to an average industry Dividend Yield of 6.99, TRNO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, TRNO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
On average, the dividend of TRNO grows each year by 13.58%, which is quite nice.
TRNO has been paying a dividend for at least 10 years, so it has a reliable track record.
TRNO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.58%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
TRNO pays out 75.83% of its income as dividend. This is not a sustainable payout ratio.
TRNO's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP75.83%
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
60.98
+1.11 (+1.85%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners110.79%
Inst Owner Change-0.01%
Ins Owners1.93%
Ins Owner Change3.27%
Market Cap6.30B
Analysts74.78
Price Target63.62 (4.33%)
Short Float %5.84%
Short Ratio7.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.87
Dividend Growth(5Y)13.58%
DP75.83%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)83.07%
Min EPS beat(2)29.8%
Max EPS beat(2)136.35%
EPS beat(4)3
Avg EPS beat(4)68.87%
Min EPS beat(4)-0.16%
Max EPS beat(4)136.35%
EPS beat(8)7
Avg EPS beat(8)47.15%
EPS beat(12)11
Avg EPS beat(12)49.44%
EPS beat(16)14
Avg EPS beat(16)65.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-0.33%
Revenue beat(12)4
Avg Revenue beat(12)0.06%
Revenue beat(16)5
Avg Revenue beat(16)0.1%
PT rev (1m)0%
PT rev (3m)-2.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.24%
EPS NY rev (1m)-1.75%
EPS NY rev (3m)17.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 39.42 | ||
| P/S | 14.79 | ||
| P/FCF | 72.22 | ||
| P/OCF | 25.88 | ||
| P/B | 1.6 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 25.15 |
EPS(TTM)2.52
EY4.13%
EPS(NY)1.55
Fwd EY2.54%
FCF(TTM)0.84
FCFY1.38%
OCF(TTM)2.36
OCFY3.86%
SpS4.12
BVpS38.17
TBVpS38.17
PEG (NY)N/A
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 6.42% | ||
| ROCE | 3.43% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.79% | ||
| ROICexgc | 2.85% | ||
| OM | 38.82% | ||
| PM (TTM) | 59.4% | ||
| GM | 74.15% | ||
| FCFM | 20.48% |
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%
ROICexcg growth 3Y-1.28%
ROICexcg 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-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 8.51 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 148.84% | ||
| Cap/Sales | 36.66% | ||
| Interest Coverage | 9.12 | ||
| Cash Conversion | 90.05% | ||
| Profit Quality | 34.47% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.8 |
F-Score5
WACC7.89%
ROIC/WACC0.34
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)40%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%143.24%
EPS Next Y-0.83%
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
EPS Next 5YN/A
Revenue 1Y (TTM)22.17%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%19.08%
Revenue Next Year19.7%
Revenue Next 2Y15.21%
Revenue Next 3Y13.7%
Revenue Next 5Y18%
EBIT growth 1Y17.09%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year100.2%
EBIT Next 3Y37.86%
EBIT Next 5Y31.03%
FCF growth 1Y22.78%
FCF growth 3Y-4.92%
FCF growth 5Y11.51%
OCF growth 1Y45.41%
OCF growth 3Y20.74%
OCF growth 5Y19.7%