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 130 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
TRNO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.99%, TRNO belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
TRNO's Return On Equity of 5.02% is fine compared to the rest of the industry. TRNO outperforms 69.23% of its industry peers.
TRNO has a Return On Invested Capital (2.63%) which 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 3.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 5.02% | ||
| ROIC | 2.63% |
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 47.97%, TRNO belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
TRNO's Profit Margin has improved in the last couple of years.
TRNO has a better Operating Margin (38.80%) than 84.62% of its industry peers.
In the last couple of years the Operating Margin of TRNO has grown nicely.
TRNO's Gross Margin of 74.03% is fine compared to the rest of the industry. TRNO outperforms 70.00% 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 | 38.8% | ||
| PM (TTM) | 47.97% | ||
| GM | 74.03% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRNO is destroying value.
TRNO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRNO has more shares outstanding
TRNO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.66 indicates that TRNO is not in any danger for bankruptcy at the moment.
The Altman-Z score of TRNO (3.66) is better than 99.23% of its industry peers.
The Debt to FCF ratio of TRNO is 11.17, which is on the high side as it means it would take TRNO, 11.17 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.17, TRNO belongs to the top of the industry, outperforming 90.00% of the companies in the same 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 98.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 11.17 | ||
| Altman-Z | 3.66 |
ROIC/WACC0.31
WACC8.53%
2.3 Liquidity
TRNO has a Current Ratio of 0.99. 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 0.99. This is comparable to the rest of the industry: TRNO outperforms 53.08% of its industry peers.
TRNO has a Quick Ratio of 0.99. This is a bad value and indicates that TRNO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, TRNO perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.19% over the past year.
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 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)4.19%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%17.5%
Revenue 1Y (TTM)22.17%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%29.86%
3.2 Future
The Earnings Per Share is expected to grow by 0.84% 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 17.77% yearly.
EPS Next Y-15.93%
EPS Next 2Y-6.3%
EPS Next 3Y0.84%
EPS Next 5YN/A
Revenue Next Year19.25%
Revenue Next 2Y15.24%
Revenue Next 3Y15.93%
Revenue Next 5Y17.77%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.18 indicates a quite expensive valuation of TRNO.
67.69% of the companies in the same industry are more expensive than TRNO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TRNO to the average of the S&P500 Index (27.15), we can say TRNO is valued inline with the index average.
A Price/Forward Earnings ratio of 33.27 indicates a quite expensive valuation of TRNO.
Based on the Price/Forward Earnings ratio, TRNO is valued a bit cheaper than the industry average as 71.54% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.60. TRNO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 33.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRNO is valued more expensive than 93.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRNO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.19 | ||
| EV/EBITDA | 24.72 |
4.3 Compensation for Growth
TRNO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y-6.3%
EPS Next 3Y0.84%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.64, TRNO is paying slightly less dividend.
TRNO's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
On average, the dividend of TRNO grows each year by 13.58%, which is quite nice.
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
TRNO pays out 94.41% of its income as dividend. This is not a sustainable payout ratio.
TRNO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP94.41%
EPS Next 2Y-6.3%
EPS Next 3Y0.84%
56.07
-0.05 (-0.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners111.22%
Inst Owner Change-1.76%
Ins Owners1.88%
Ins Owner Change-0.42%
Market Cap5.79B
Analysts73.33
Price Target65.16 (16.21%)
Short Float %5.43%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.87
Dividend Growth(5Y)13.58%
DP94.41%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)69.65%
Min EPS beat(2)29.8%
Max EPS beat(2)109.51%
EPS beat(4)3
Avg EPS beat(4)35.45%
Min EPS beat(4)-0.16%
Max EPS beat(4)109.51%
EPS beat(8)7
Avg EPS beat(8)36.38%
EPS beat(12)11
Avg EPS beat(12)68%
EPS beat(16)14
Avg EPS beat(16)57.21%
Revenue beat(2)0
Avg Revenue beat(2)-0.22%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)0.88%
Min Revenue beat(4)-0.44%
Max Revenue beat(4)4.04%
Revenue beat(8)2
Avg Revenue beat(8)-0.07%
Revenue beat(12)4
Avg Revenue beat(12)0.17%
Revenue beat(16)6
Avg Revenue beat(16)0.44%
PT rev (1m)-3.12%
PT rev (3m)-8.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.45%
EPS NY rev (1m)1.28%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 33.27 | ||
| P/S | 14.2 | ||
| P/FCF | 87.19 | ||
| P/OCF | 23.45 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 24.72 |
EPS(TTM)1.99
EY3.55%
EPS(NY)1.69
Fwd EY3.01%
FCF(TTM)0.64
FCFY1.15%
OCF(TTM)2.39
OCFY4.27%
SpS3.95
BVpS37.7
TBVpS37.7
PEG (NY)N/A
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 5.02% | ||
| ROCE | 3.33% | ||
| ROIC | 2.63% | ||
| ROICexc | 2.72% | ||
| ROICexgc | 2.78% | ||
| OM | 38.8% | ||
| PM (TTM) | 47.97% | ||
| GM | 74.03% | ||
| FCFM | 16.29% |
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-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 11.17 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 180.81% | ||
| Cap/Sales | 44.27% | ||
| Interest Coverage | 8.87 | ||
| Cash Conversion | 95.68% | ||
| Profit Quality | 33.95% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.66 |
F-Score6
WACC8.53%
ROIC/WACC0.31
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)4.19%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%17.5%
EPS Next Y-15.93%
EPS Next 2Y-6.3%
EPS Next 3Y0.84%
EPS Next 5YN/A
Revenue 1Y (TTM)22.17%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%29.86%
Revenue Next Year19.25%
Revenue Next 2Y15.24%
Revenue Next 3Y15.93%
Revenue Next 5Y17.77%
EBIT growth 1Y15.36%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year99.44%
EBIT Next 3Y38.94%
EBIT Next 5Y33.44%
FCF growth 1Y-1.99%
FCF growth 3Y-4.92%
FCF growth 5Y11.51%
OCF growth 1Y60.43%
OCF growth 3Y20.74%
OCF growth 5Y19.7%