Prologis logged a -1.2% change during today's afternoon session, and is now trading at a price of $122.28 per share.
Over the last year, Prologis logged a -5.0% change, with its stock price reaching a high of $138.86 and a low of $98.03. Over the same period, the stock underperformed the S&P 500 index by -15.0%. As of April 2023, the company's 50-day average price was $123.44. Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. Based in San Francisco, CA, the large-cap Real Estate company has 2,466 full time employees. Prologis has offered a 2.7% dividend yield over the last 12 months.
Growing Revenues With a Flat Capital Expenditure Trend:
| 2020-02-11 | 2021-02-11 | 2022-02-09 | 2023-02-14 | |
|---|---|---|---|---|
| Revenue (MM) | $3,331 | $4,439 | $4,759 | $5,974 |
| Operating Margins | 29.8% | 31.6% | 34.0% | 38.2% |
| Net Margins | 47.23% | 33.38% | 61.77% | 56.33% |
| Net Income (MM) | $1,573 | $1,482 | $2,940 | $3,365 |
| Net Interest Expense (MM) | -$240 | -$315 | -$266 | -$309 |
| Depreciation & Amort. (MM) | -$1,140 | -$1,562 | -$1,578 | -$1,813 |
| Earnings Per Share | $2.39 | $1.95 | $3.84 | $3.2 |
| EPS Growth | n/a | -18.41% | 96.92% | -16.67% |
| Diluted Shares (MM) | 655 | 754 | 765 | 923 |
| Free Cash Flow (MM) | $5,208 | $4,326 | $5,486 | $6,830 |
| Capital Expenditures (MM) | -$2,944 | -$1,389 | -$2,490 | -$2,703 |
| Net Current Assets (MM) | -$12,151 | -$18,072 | -$19,518 | -$29,225 |
| Current Ratio | 0.88 | 0.58 | 0.4 | 0.13 |
| Long Term Debt (MM) | $11,906 | $16,849 | $17,715 | $23,876 |
Prologis benefits from growing revenues and a flat capital expenditure trend, strong margins with a positive growth rate, and a steady stream of strong cash flows. The company's financial statements show healthy debt levels and positive EPS growth.
Prologis's Valuation Is in Line With Its Sector Averages:
Prologis has a trailing twelve month P/E ratio of 38.6, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $3.12, the company has a forward P/E ratio of 39.6. The 5.5% compound average growth rate of Prologis's historical and projected earnings per share yields a PEG ratio of 7.05. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Prologis in terms of its equity because its P/B ratio is 2.12 while the sector average is 2.24. The company's shares are currently trading 101.2% above their Graham number. In conclusion, Prologis's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
Prologis Has an Average Rating of Buy:
The 21 analysts following Prologis have set target prices ranging from $128.0 to $162.0 per share, for an average of $142.57 with a buy rating. As of April 2023, the company is trading -13.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Prologis has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 95.5% of the company's shares, and the insider ownership rate stands at 0.32%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 13% stake in the company is worth $14,960,277,729.
