TERRENO REALTY CORP (TRNO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRNO - US88146M1018 - REIT
59.02 USD
+0.31 (+0.53%)
59.02 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TRNO. TRNO was compared to 127 industry peers in the Diversified REITs industry. While TRNO has a great profitability rating, there are some minor concerns on its financial health. TRNO has a correct valuation and a medium 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.
In the past 5 years TRNO has always 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 99.21% of its industry peers.
Looking at the Return On Equity, with a value of 8.00%, TRNO is in the better half of the industry, outperforming 79.53% 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
Looking at the Profit Margin, with a value of 72.18%, TRNO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TRNO has grown nicely.
TRNO has a better Operating Margin (39.36%) than 84.25% of its industry peers.
In the last couple of years the Operating Margin of TRNO has grown nicely.
TRNO has a better Gross Margin (74.53%) than 71.65% 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
TRNO has an Altman-Z score of 2.94. This is not the best score and indicates that TRNO is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.94, TRNO belongs to the best of the industry, outperforming 96.85% of the companies in the same industry.
TRNO has a debt to FCF ratio of 8.73. This is a slightly negative value and a sign of low solvency as TRNO would need 8.73 years to pay back of all of its debts.
TRNO's Debt to FCF ratio of 8.73 is amongst the best of the industry. TRNO outperforms 92.91% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that TRNO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, TRNO belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.73 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.33
WACC8.04%
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.
TRNO's Current ratio of 0.15 is on the low side compared to the rest of the industry. TRNO is outperformed by 93.70% of its industry peers.
A Quick Ratio of 0.15 indicates that TRNO may have some problems paying its short term obligations.
TRNO has a Quick ratio of 0.15. This is amonst the worse of the industry: TRNO underperforms 92.91% of its industry peers.
| 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.
The Earnings Per Share has been growing by 17.70% on average over the past years. This is quite good.
Looking at the last year, TRNO shows a very strong growth in Revenue. The Revenue has grown by 21.13%.
The Revenue has been growing by 17.48% on average over the past years. This is quite good.
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 -0.58% on average per year.
The Revenue is expected to grow by 16.62% on average over the next years. This is quite good.
EPS Next Y13.51%
EPS Next 2Y-9.55%
EPS Next 3Y-0.58%
EPS Next 5YN/A
Revenue Next Year21.02%
Revenue Next 2Y15.61%
Revenue Next 3Y13.26%
Revenue Next 5Y16.62%
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
A Price/Earnings ratio of 18.74 indicates a rather expensive valuation of TRNO.
Based on the Price/Earnings ratio, TRNO is valued cheaply inside the industry as 83.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.60, TRNO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 37.57, the valuation of TRNO can be described as expensive.
66.93% of the companies in the same industry are more expensive than TRNO, based on the Price/Forward Earnings ratio.
TRNO is valuated expensively when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 37.57 |
4.2 Price Multiples
88.19% of the companies in the same industry are cheaper than TRNO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TRNO is valued a bit cheaper than 63.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.06 | ||
| EV/EBITDA | 24.93 |
4.3 Compensation for Growth
TRNO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TRNO may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)1.06
EPS Next 2Y-9.55%
EPS Next 3Y-0.58%
5. Dividend
5.1 Amount
TRNO has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.43, TRNO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.00, TRNO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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.
TRNO's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP62.29%
EPS Next 2Y-9.55%
EPS Next 3Y-0.58%
59.02
+0.31 (+0.53%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners110.32%
Inst Owner Change-0.04%
Ins Owners1.93%
Ins Owner Change2.83%
Market Cap6.10B
Revenue(TTM)442.61M
Net Income(TTM)319.48M
Analysts75.83
Price Target67.44 (14.27%)
Short Float %5.28%
Short Ratio8.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend1.87
Dividend Growth(5Y)13.58%
DP62.29%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
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)1.17%
PT rev (3m)6.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.45%
EPS NY rev (1m)14.46%
EPS NY rev (3m)14.46%
Revenue NQ rev (1m)2.33%
Revenue NQ rev (3m)4.66%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 37.57 | ||
| P/S | 13.79 | ||
| P/FCF | 52.06 | ||
| P/OCF | 24.13 | ||
| P/B | 1.53 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 24.93 |
EPS(TTM)3.15
EY5.34%
EPS(NY)1.57
Fwd EY2.66%
FCF(TTM)1.13
FCFY1.92%
OCF(TTM)2.45
OCFY4.14%
SpS4.28
BVpS38.64
TBVpS38.64
PEG (NY)1.39
PEG (5Y)1.06
Graham Number52.33
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 | 2.94 |
F-Score4
WACC8.04%
ROIC/WACC0.33
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 Y13.51%
EPS Next 2Y-9.55%
EPS Next 3Y-0.58%
EPS Next 5YN/A
Revenue 1Y (TTM)21.13%
Revenue growth 3Y19.91%
Revenue growth 5Y17.48%
Sales Q2Q%16.67%
Revenue Next Year21.02%
Revenue Next 2Y15.61%
Revenue Next 3Y13.26%
Revenue Next 5Y16.62%
EBIT growth 1Y19.87%
EBIT growth 3Y18.88%
EBIT growth 5Y20.28%
EBIT Next Year102.59%
EBIT Next 3Y37.81%
EBIT Next 5Y29.83%
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 5 / 10 to TRNO.
Can you provide the valuation status for TERRENO REALTY CORP?
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 7 / 10.
What are the PE and PB ratios of TERRENO REALTY CORP (TRNO) stock?
The Price/Earnings (PE) ratio for TERRENO REALTY CORP (TRNO) is 18.74 and the Price/Book (PB) ratio is 1.53.
How sustainable is the dividend of TERRENO REALTY CORP (TRNO) stock?
The dividend rating of TERRENO REALTY CORP (TRNO) is 5 / 10 and the dividend payout ratio is 62.29%.