Market Inference Overview -- COLD Stock

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.