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 129 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
TRNO had positive earnings in the past year.
TRNO had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.85%, TRNO belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
TRNO has a better Return On Equity (5.02%) than 70.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.54%, TRNO is in line with its industry, outperforming 44.44% of the companies in the same 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 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 5.02% | ||
| ROIC | 2.54% |
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
The Profit Margin of TRNO (48.01%) is better than 96.83% of its industry peers.
In the last couple of years the Profit Margin of TRNO has grown nicely.
TRNO's Operating Margin of 38.69% is amongst the best of the industry. TRNO outperforms 84.92% of its industry peers.
TRNO's Operating Margin has improved in the last couple of years.
TRNO has a Gross Margin of 74.36%. This is in the better half of the industry: TRNO outperforms 71.43% of its industry peers.
TRNO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.69% | ||
| PM (TTM) | 48.01% | ||
| GM | 74.36% |
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
The number of shares outstanding for TRNO has been increased compared to 5 years ago.
TRNO has a better debt/assets ratio than last year.
2.2 Solvency
TRNO has an Altman-Z score of 3.84. This indicates that TRNO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.84, TRNO belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
TRNO has a debt to FCF ratio of 13.76. This is a negative value and a sign of low solvency as TRNO would need 13.76 years to pay back of all of its debts.
TRNO's Debt to FCF ratio of 13.76 is amongst the best of the industry. TRNO outperforms 84.92% of its industry peers.
TRNO has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TRNO (0.22) is better than 96.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 13.76 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.31
WACC8.2%
2.3 Liquidity
A Current Ratio of 0.11 indicates that TRNO may have some problems paying its short term obligations.
TRNO has a Current ratio of 0.11. This is amonst the worse of the industry: TRNO underperforms 98.41% of its industry peers.
TRNO has a Quick Ratio of 0.11. This is a bad value and indicates that TRNO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TRNO (0.11) is worse than 98.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
TRNO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.67%.
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.
TRNO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.24%.
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)6.67%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%16.42%
Revenue 1Y (TTM)18.24%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%19.92%
3.2 Future
The Earnings Per Share is expected to grow by 5.02% on average over the next years.
Based on estimates for the next years, TRNO will show a quite strong growth in Revenue. The Revenue will grow by 8.51% on average per year.
EPS Next Y-16.99%
EPS Next 2Y-5.81%
EPS Next 3Y5.02%
EPS Next 5YN/A
Revenue Next Year16.94%
Revenue Next 2Y14.77%
Revenue Next 3Y8.51%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TRNO is valuated quite expensively with a Price/Earnings ratio of 35.09.
TRNO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.75. TRNO is around the same levels.
Based on the Price/Forward Earnings ratio of 42.27, the valuation of TRNO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRNO indicates a somewhat cheap valuation: TRNO is cheaper than 68.25% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TRNO to the average of the S&P500 Index (22.44), we can say TRNO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.09 | ||
| Fwd PE | 42.27 |
4.2 Price Multiples
TRNO's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. TRNO is more expensive than 95.24% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRNO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 112.36 | ||
| EV/EBITDA | 31.3 |
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)1.98
EPS Next 2Y-5.81%
EPS Next 3Y5.02%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 2.89%.
With a Dividend Yield of 2.89, TRNO pays less dividend than the industry average, which is at 19.13. 80.95% of the companies listed in the same industry pay a better dividend than TRNO!
Compared to an average S&P500 Dividend Yield of 2.30, TRNO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
On average, the dividend of TRNO grows each year by 13.58%, which is quite nice.
TRNO has been paying a dividend for at least 10 years, so it has a reliable track record.
TRNO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.58%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
95.24% of the earnings are spent on dividend by TRNO. This is not a sustainable payout ratio.
TRNO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP95.24%
EPS Next 2Y-5.81%
EPS Next 3Y5.02%
67.37
-0.45 (-0.66%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners118.73%
Inst Owner Change9.95%
Ins Owners1.9%
Ins Owner Change-0.6%
Market Cap6.72B
Analysts74.78
Price Target69.96 (3.84%)
Short Float %7.59%
Short Ratio5.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend1.87
Dividend Growth(5Y)13.58%
DP95.24%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)54.67%
Min EPS beat(2)-0.16%
Max EPS beat(2)109.51%
EPS beat(4)3
Avg EPS beat(4)30.49%
Min EPS beat(4)-0.16%
Max EPS beat(4)109.51%
EPS beat(8)7
Avg EPS beat(8)33.32%
EPS beat(12)10
Avg EPS beat(12)64.91%
EPS beat(16)14
Avg EPS beat(16)55.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)-0.08%
Revenue beat(4)1
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-4.47%
Max Revenue beat(4)4.04%
Revenue beat(8)2
Avg Revenue beat(8)-0.47%
Revenue beat(12)4
Avg Revenue beat(12)0.15%
Revenue beat(16)7
Avg Revenue beat(16)0.51%
PT rev (1m)1.14%
PT rev (3m)-3.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.53%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.09 | ||
| Fwd PE | 42.27 | ||
| P/S | 17.57 | ||
| P/FCF | 112.36 | ||
| P/OCF | 28.89 | ||
| P/B | 1.84 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 31.3 |
EPS(TTM)1.92
EY2.85%
EPS(NY)1.59
Fwd EY2.37%
FCF(TTM)0.6
FCFY0.89%
OCF(TTM)2.33
OCFY3.46%
SpS3.83
BVpS36.7
TBVpS36.7
PEG (NY)N/A
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 5.02% | ||
| ROCE | 3.22% | ||
| ROIC | 2.54% | ||
| ROICexc | 2.55% | ||
| ROICexgc | 2.6% | ||
| OM | 38.69% | ||
| PM (TTM) | 48.01% | ||
| GM | 74.36% | ||
| FCFM | 15.64% |
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-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 13.76 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 184.06% | ||
| Cap/Sales | 45.18% | ||
| Interest Coverage | 7.08 | ||
| Cash Conversion | 96.17% | ||
| Profit Quality | 32.57% | ||
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.11 | ||
| Altman-Z | 3.84 |
F-Score4
WACC8.2%
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)6.67%
EPS 3Y16%
EPS 5Y17.7%
EPS Q2Q%16.42%
EPS Next Y-16.99%
EPS Next 2Y-5.81%
EPS Next 3Y5.02%
EPS Next 5YN/A
Revenue 1Y (TTM)18.24%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%19.92%
Revenue Next Year16.94%
Revenue Next 2Y14.77%
Revenue Next 3Y8.51%
Revenue Next 5YN/A
EBIT growth 1Y11.01%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year98.11%
EBIT Next 3Y39.22%
EBIT Next 5YN/A
FCF growth 1Y1860.22%
FCF growth 3Y-4.92%
FCF growth 5Y11.51%
OCF growth 1Y29.5%
OCF growth 3Y20.74%
OCF growth 5Y19.7%