TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRNO - US88146M1018 - REIT
61.93 USD
+1.83 (+3.04%)
61.93 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
TRNO had positive earnings in the past year.
TRNO had a positive operating cash flow in the past year.
Each year in the past 5 years TRNO has been profitable.
TRNO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRNO has a better Return On Assets (5.99%) than 99.22% of its industry peers.
With an excellent Return On Equity value of 8.00%, TRNO belongs to the best of the industry, outperforming 82.03% of the companies in the same industry.
TRNO has a Return On Invested Capital (2.67%) which is in line with its industry peers.
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 3.06%.
| 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
TRNO's Profit Margin of 72.18% is amongst the best of the industry. TRNO outperforms 100.00% 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 39.36%, TRNO belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
In the last couple of years the Operating Margin of TRNO has grown nicely.
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.
TRNO has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.08 indicates that TRNO is not in any danger for bankruptcy at the moment.
TRNO's Altman-Z score of 3.08 is amongst the best of the industry. TRNO outperforms 96.88% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 8.73, TRNO belongs to the best of the industry, outperforming 92.97% of the companies in the same industry.
TRNO has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
TRNO has a Debt to Equity ratio of 0.26. This is amongst the best in the industry. TRNO outperforms 96.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.73 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.34
WACC7.97%
2.3 Liquidity
TRNO has a Current Ratio of 0.15. 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 Current ratio, with a value of 0.15, TRNO is doing worse than 94.53% of the companies in the same industry.
A Quick Ratio of 0.15 indicates that TRNO may have some problems paying its short term obligations.
The Quick ratio of TRNO (0.15) is worse than 93.75% of its industry peers.
The current and quick ratio evaluation for TRNO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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.
TRNO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.70% yearly.
The Revenue has grown by 21.13% in the past year. This is a very strong growth!
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)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 -1.30% on average per year.
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 Year19.61%
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.
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
TRNO is valuated rather expensively with a Price/Earnings ratio of 19.66.
Based on the Price/Earnings ratio, TRNO is valued cheaper than 84.38% of the companies in the same industry.
TRNO is valuated rather cheaply when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 40.03, the valuation of TRNO can be described as expensive.
TRNO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRNO is cheaper than 64.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.42. TRNO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 40.03 |
4.2 Price Multiples
TRNO's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. TRNO is more expensive than 89.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TRNO is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.57 | ||
| EV/EBITDA | 26.09 |
4.3 Compensation for Growth
TRNO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 3.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.59, TRNO is paying slightly less dividend.
TRNO's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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 62.29% 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.
DP62.29%
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
61.93
+1.83 (+3.04%)
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-0.04%
Ins Owners1.93%
Ins Owner Change2.83%
Market Cap6.40B
Revenue(TTM)442.61M
Net Income(TTM)319.48M
Analysts74.17
Price Target66.66 (7.64%)
Short Float %5.39%
Short Ratio8.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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)4.77%
PT rev (3m)4.77%
EPS NQ rev (1m)15.45%
EPS NQ rev (3m)7.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)2.2%
Revenue NQ rev (3m)2.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 40.03 | ||
| P/S | 14.45 | ||
| P/FCF | 54.57 | ||
| P/OCF | 25.29 | ||
| P/B | 1.6 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 26.09 |
EPS(TTM)3.15
EY5.09%
EPS(NY)1.55
Fwd EY2.5%
FCF(TTM)1.13
FCFY1.83%
OCF(TTM)2.45
OCFY3.95%
SpS4.28
BVpS38.68
TBVpS38.68
PEG (NY)N/A
PEG (5Y)1.11
Graham Number52.36
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 | 3.08 |
F-Score4
WACC7.97%
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)74.03%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%170.27%
EPS Next Y-0.83%
EPS Next 2Y-10.24%
EPS Next 3Y-1.3%
EPS Next 5YN/A
Revenue 1Y (TTM)21.13%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%16.67%
Revenue Next Year19.61%
Revenue Next 2Y15.16%
Revenue Next 3Y13.61%
Revenue Next 5Y18%
EBIT growth 1Y19.87%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year100.2%
EBIT Next 3Y37.86%
EBIT Next 5Y31.03%
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 8 / 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 19.66 and the Price/Book (PB) ratio is 1.6.
How financially healthy is TERRENO REALTY CORP?
The financial health rating of TERRENO REALTY CORP (TRNO) is 6 / 10.