Americold Realty Trust logged a -1.0% change during today's morning session, and is now trading at a price of $29.64 per share.
Americold Realty Trust returned gains of 15.2% last year, with its stock price reaching a high of $32.99 and a low of $21.49. Over the same period, the stock outperformed the S&P 500 index by 14.0%. More recently, the company's 50-day average price was $28.82. Americold is the world's largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 185 temperature-controlled warehouses, with over 1 billion refrigerated cubic feet of storage, in the United States, Australia, New Zealand, Canada, and Argentina. Based in Atlanta, GA, the mid-cap Finance company has 15,174 full time employees. Americold Realty Trust has returned a 2.9% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
The Business Is Unprofitable and Its Balance Sheet Is Highly Leveraged:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $1,784 | $1,988 | $2,715 | $2,915 |
| Interest Income | -$90,787 | -$92,757 | -$98,336 | -$114,494 |
| Operating Margins | 10.4% | 9.6% | 4.7% | 4.6% |
| Net Margins | 2.7% | 1.24% | -1.12% | -0.67% |
| Net Income (MM) | $48 | $25 | -$30 | -$19 |
| Depreciation & Amort. | -$163,499 | -$215,891 | -$319,840 | -$331,446 |
| Earnings Per Share | $0.26 | $0.11 | -$0.12 | -$0.02 |
| EPS Growth | n/a | -57.69% | -209.09% | 83.33% |
| Diluted Shares (MM) | 184 | 207 | 259 | 270 |
| Free Cash Flow (MM) | -$66 | -$109 | -$219 | -$23 |
| Capital Expenditures (MM) | -$302 | -$402 | -$492 | -$323 |
| Net Current Assets (MM) | -$1,882 | -$3,093 | -$3,724 | -$3,834 |
| Current Ratio | 1.24 | 1.65 | 0.47 | 0.44 |
| Long Term Debt (MM) | $1,695 | $2,648 | $2,444 | $2,569 |
| Net Debt / EBITDA | n/a | n/a | 7.15 | 7.4 |
Americold Realty Trust's financial statements include several red flags such as weak operating margins with a negative growth trend, declining EPS growth, and negative and highly variable cash flows. Additionally, the firm has a highly leveraged balance sheet. On the other hand, the company has growing revenues and a flat capital expenditure trend working in its favor.
Americold Realty Trust does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $0.32, the company has a forward P/E ratio of 90.1. In comparison, the average P/E ratio for the Finance sector is 14.34. Furthermore, Americold Realty Trust is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.16 is higher than the sector average of 1.57.
There's an Analyst Consensus of Some Upside Potential for Americold Realty Trust:
The 9 analysts following Americold Realty Trust have set target prices ranging from $32.0 to $39.0 per share, for an average of $35.0 with a buy rating. As of April 2023, the company is trading -17.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Americold Realty Trust has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 114.9% of the company's shares, and the insider ownership rate stands at 0.17%, suggesting a small amount of insider investors. The largest shareholder is Cohen & Steers Inc., whose 17% stake in the company is worth $1,350,620,832.
