TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
USA - NYSE:TRNO - US88146M1018 - REIT
58.6 USD
+0.32 (+0.55%)
58.6 USD
0 (0%)
TRNO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. TRNO has an excellent profitability rating, but 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
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.
In the past 5 years TRNO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.08%, TRNO belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
The Return On Equity of TRNO (6.42%) is better than 75.38% of its industry peers.
TRNO's Return On Invested Capital of 2.71% is in line compared to the rest of the industry. TRNO outperforms 50.00% 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 | 5.08% | ||
| 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
With an excellent Profit Margin value of 59.40%, TRNO belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
TRNO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 38.82%, TRNO belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
In the last couple of years the Operating Margin of TRNO has grown nicely.
Looking at the Gross Margin, with a value of 74.15%, TRNO is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRNO is destroying value.
Compared to 1 year ago, TRNO has more shares outstanding
TRNO has more shares outstanding than it did 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 3.70 indicates that TRNO is not in any danger for bankruptcy at the moment.
TRNO has a better Altman-Z score (3.70) than 99.23% of its industry peers.
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 92.31% of its industry peers.
TRNO has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
TRNO has a better Debt to Equity ratio (0.19) than 98.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 3.7 |
ROIC/WACC0.34
WACC7.92%
2.3 Liquidity
A Current Ratio of 0.78 indicates that TRNO may have some problems paying its short term obligations.
TRNO's Current ratio of 0.78 is in line compared to the rest of the industry. TRNO outperforms 42.31% of its industry peers.
A Quick Ratio of 0.78 indicates that TRNO may have some problems paying its short term obligations.
TRNO's Quick ratio of 0.78 is in line compared to the rest of the industry. TRNO outperforms 43.08% of its industry peers.
| 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%.
The Revenue has been growing by 17.48% on average over the past years. This is quite good.
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
Based on estimates for the next years, TRNO will show a decrease in Earnings Per Share. The EPS will decrease by -1.30% on average per year.
The Revenue is expected to grow by 18.00% on average over the next years. This is quite good.
EPS Next Y0.94%
EPS Next 2Y-6.23%
EPS Next 3Y-1.3%
EPS Next 5YN/A
Revenue Next Year19.64%
Revenue Next 2Y15.14%
Revenue Next 3Y13.71%
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.
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
The Price/Earnings ratio is 23.25, which indicates a rather expensive current valuation of TRNO.
83.08% of the companies in the same industry are more expensive than TRNO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.20. TRNO is around the same levels.
TRNO is valuated quite expensively with a Price/Forward Earnings ratio of 34.71.
72.31% of the companies in the same industry are more expensive than TRNO, based on the Price/Forward Earnings ratio.
TRNO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 34.71 |
4.2 Price Multiples
90.77% of the companies in the same industry are cheaper than TRNO, based on the Enterprise Value to EBITDA ratio.
TRNO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.4 | ||
| EV/EBITDA | 24.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRNO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)24.8
PEG (5Y)1.31
EPS Next 2Y-6.23%
EPS Next 3Y-1.3%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 3.54%.
Compared to an average industry Dividend Yield of 6.66, TRNO is paying slightly less dividend.
TRNO's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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 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
75.83% 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.
DP75.83%
EPS Next 2Y-6.23%
EPS Next 3Y-1.3%
58.6
+0.32 (+0.55%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners111.37%
Inst Owner Change-3.32%
Ins Owners1.88%
Ins Owner Change3.27%
Market Cap6.05B
Analysts74.55
Price Target63.43 (8.24%)
Short Float %6.14%
Short Ratio7.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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)-3.12%
PT rev (3m)-2.65%
EPS NQ rev (1m)-1.8%
EPS NQ rev (3m)-5.22%
EPS NY rev (1m)21.28%
EPS NY rev (3m)21.6%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 34.71 | ||
| P/S | 14.21 | ||
| P/FCF | 69.4 | ||
| P/OCF | 24.87 | ||
| P/B | 1.54 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 24.55 |
EPS(TTM)2.52
EY4.3%
EPS(NY)1.69
Fwd EY2.88%
FCF(TTM)0.84
FCFY1.44%
OCF(TTM)2.36
OCFY4.02%
SpS4.12
BVpS38.17
TBVpS38.17
PEG (NY)24.8
PEG (5Y)1.31
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 | 3.7 |
F-Score5
WACC7.92%
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 Y0.94%
EPS Next 2Y-6.23%
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 Year19.64%
Revenue Next 2Y15.14%
Revenue Next 3Y13.71%
Revenue Next 5Y18%
EBIT growth 1Y17.09%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year99.84%
EBIT Next 3Y38.14%
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%