TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
USA - NYSE:TRNO - US88146M1018 - REIT
58.98 USD
+0.97 (+1.67%)
58.98 USD
0 (0%)
Taking everything into account, TRNO scores 6 out of 10 in our fundamental rating. TRNO was compared to 127 industry peers in the Diversified REITs industry. TRNO has an excellent profitability rating, 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
TRNO had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 5.08%, TRNO belongs to the top of the industry, outperforming 94.49% of the companies in the same industry.
With a decent Return On Equity value of 6.42%, TRNO is doing good in the industry, outperforming 74.02% of the companies in the same industry.
With a Return On Invested Capital value of 2.71%, TRNO perfoms like the industry average, outperforming 49.61% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRNO is in line with the industry average of 3.07%.
| 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 better Profit Margin (59.40%) than 98.43% of its industry peers.
In the last couple of years the Profit Margin of TRNO has grown nicely.
Looking at the Operating Margin, with a value of 38.82%, TRNO belongs to the top of the industry, outperforming 84.25% of the companies in the same industry.
TRNO's Operating Margin has improved in the last couple of years.
TRNO has a better Gross Margin (74.15%) than 69.29% 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 | 38.82% | ||
| 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.
Compared to 1 year ago, TRNO has more shares outstanding
Compared to 5 years ago, TRNO has more shares outstanding
The debt/assets ratio for TRNO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.68 indicates that TRNO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.68, TRNO belongs to the best of the industry, outperforming 97.64% 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.
TRNO's Debt to FCF ratio of 8.51 is amongst the best of the industry. TRNO outperforms 92.13% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that TRNO is not too dependend on debt financing.
TRNO's Debt to Equity ratio of 0.19 is amongst the best of the industry. TRNO outperforms 98.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.34
WACC8.03%
2.3 Liquidity
TRNO has a Current Ratio of 0.78. 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 Current ratio of 0.78 is in line compared to the rest of the industry. TRNO outperforms 40.94% of its industry peers.
TRNO has a Quick Ratio of 0.78. This is a bad value and indicates that TRNO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.78, TRNO is in line with its industry, outperforming 41.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.00% 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%.
Measured over the past years, TRNO shows a quite strong growth in Revenue. The Revenue has been growing by 17.48% on average per year.
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
TRNO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.30% yearly.
The Revenue is expected to grow by 18.00% on average over the next years. This is quite good.
EPS Next Y-0.83%
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
EPS Next 5YN/A
Revenue Next Year19.61%
Revenue Next 2Y15.16%
Revenue Next 3Y13.61%
Revenue Next 5Y18%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 23.40, which indicates a rather expensive current valuation of TRNO.
75.59% of the companies in the same industry are more expensive than TRNO, based on the Price/Earnings ratio.
TRNO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 38.13, which means the current valuation is very expensive for TRNO.
66.14% 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 (31.86), we can say TRNO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 38.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRNO is valued expensively inside the industry as 89.76% of the companies are valued cheaper.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRNO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.85 | ||
| EV/EBITDA | 24.44 |
4.3 Compensation for Growth
The decent profitability rating of TRNO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.59%, TRNO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.24, TRNO is paying slightly less dividend.
TRNO's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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 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.
The Dividend Rate of TRNO has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP75.83%
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
58.98
+0.97 (+1.67%)
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-0.77%
Ins Owners1.93%
Ins Owner Change3.27%
Market Cap6.09B
Revenue(TTM)426.00M
Net Income(TTM)253.06M
Analysts74.17
Price Target64.5 (9.36%)
Short Float %5.19%
Short Ratio7.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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)1.68%
PT rev (3m)-1.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.39%
EPS NY rev (1m)0%
EPS NY rev (3m)19.15%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 38.13 | ||
| P/S | 14.3 | ||
| P/FCF | 69.85 | ||
| P/OCF | 25.03 | ||
| P/B | 1.55 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 24.44 |
EPS(TTM)2.52
EY4.27%
EPS(NY)1.55
Fwd EY2.62%
FCF(TTM)0.84
FCFY1.43%
OCF(TTM)2.36
OCFY3.99%
SpS4.12
BVpS38.17
TBVpS38.17
PEG (NY)N/A
PEG (5Y)1.32
Graham Number46.52
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%
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-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 | 3.68 |
F-Score5
WACC8.03%
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 Year19.61%
Revenue Next 2Y15.16%
Revenue Next 3Y13.61%
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%
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 3 / 10 to TERRENO REALTY CORP (TRNO). This can be considered as Overvalued.
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 23.4 and the Price/Book (PB) ratio is 1.55.
How financially healthy is TERRENO REALTY CORP?
The financial health rating of TERRENO REALTY CORP (TRNO) is 5 / 10.