TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRNO - US88146M1018 - REIT
61.34 USD
-0.93 (-1.49%)
61.34 USD
0 (0%)
Overall TRNO gets a fundamental rating of 6 out of 10. We evaluated TRNO against 128 industry peers in the Diversified REITs industry. While TRNO has a great profitability rating, 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.
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
The Return On Assets of TRNO (5.99%) is better than 99.22% of its industry peers.
Looking at the Return On Equity, with a value of 8.00%, TRNO is in the better half of the industry, outperforming 78.91% of the companies in the same industry.
TRNO's Return On Invested Capital of 2.67% is in line compared to the rest of the industry. TRNO outperforms 47.66% 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
Looking at the Profit Margin, with a value of 72.18%, TRNO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TRNO has grown nicely.
The Operating Margin of TRNO (39.36%) is better than 84.38% of its industry peers.
TRNO's Operating Margin has improved in the last couple of years.
TRNO has a Gross Margin of 74.53%. This is in the better half of the industry: TRNO outperforms 71.88% 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 | 39.36% | ||
| 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
Compared to 1 year ago, TRNO has an improved debt to assets ratio.
2.2 Solvency
TRNO has an Altman-Z score of 3.06. This indicates that TRNO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.06, TRNO belongs to the best 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 Debt to FCF ratio of 8.73. This is amongst the best in the industry. TRNO outperforms 92.97% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that TRNO is not too dependend on debt financing.
The Debt to Equity ratio of TRNO (0.26) is better than 96.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.73 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.33
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.15 indicates that TRNO may have some problems paying its short term obligations.
The Current ratio of TRNO (0.15) is worse than 94.53% of its industry peers.
A Quick Ratio of 0.15 indicates that TRNO may have some problems paying its short term obligations.
TRNO has a Quick ratio of 0.15. This is amonst the worse of the industry: TRNO underperforms 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.
The Earnings Per Share has been growing by 17.70% on average over the past years. This is quite good.
The Revenue has grown by 21.13% in the past year. This is a very strong growth!
The Revenue has been growing by 17.48% on average over the past years. This is quite good.
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.
TRNO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.62% yearly.
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
TRNO is valuated rather expensively with a Price/Earnings ratio of 19.47.
Based on the Price/Earnings ratio, TRNO is valued cheaper than 82.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of TRNO to the average of the S&P500 Index (26.54), we can say TRNO is valued slightly cheaper.
The Price/Forward Earnings ratio is 39.05, which means the current valuation is very expensive for TRNO.
Based on the Price/Forward Earnings ratio, TRNO is valued a bit cheaper than 66.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. TRNO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.47 | ||
| Fwd PE | 39.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRNO is valued more expensive than 89.84% of the companies in the same industry.
63.28% of the companies in the same industry are more expensive than TRNO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.11 | ||
| EV/EBITDA | 25.89 |
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)1.44
PEG (5Y)1.1
EPS Next 2Y-9.55%
EPS Next 3Y-0.58%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 3.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.28, TRNO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.96, TRNO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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
62.29% of the earnings are spent on dividend by TRNO. 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.
DP62.29%
EPS Next 2Y-9.55%
EPS Next 3Y-0.58%
61.34
-0.93 (-1.49%)
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 Cap6.34B
Revenue(TTM)442.61M
Net Income(TTM)319.48M
Analysts75.83
Price Target67.26 (9.65%)
Short Float %5.59%
Short Ratio8.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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)6.04%
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)3.84%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.47 | ||
| Fwd PE | 39.05 | ||
| P/S | 14.33 | ||
| P/FCF | 54.11 | ||
| P/OCF | 25.08 | ||
| P/B | 1.59 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 25.89 |
EPS(TTM)3.15
EY5.14%
EPS(NY)1.57
Fwd EY2.56%
FCF(TTM)1.13
FCFY1.85%
OCF(TTM)2.45
OCFY3.99%
SpS4.28
BVpS38.64
TBVpS38.64
PEG (NY)1.44
PEG (5Y)1.1
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 | 3.06 |
F-Score4
WACC8.07%
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 19.47 and the Price/Book (PB) ratio is 1.59.
How financially healthy is TERRENO REALTY CORP?
The financial health rating of TERRENO REALTY CORP (TRNO) is 5 / 10.