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Prologis -- The Essentials

Now trading at a price of $124.86, Prologis has moved 0.7% so far today.

Over the last year, Prologis logged a 1.0% change, with its stock price reaching a high of $136.67 and a low of $98.03. Over the same period, the stock underperformed the S&P 500 index by -13.0%. As of April 2023, the company's 50-day average price was $123.1. 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.

The Business Has Operating Margins Consistently Higher Than the 25.46% industry Average:

2018-02-15 2019-02-13 2020-02-11 2021-02-11 2022-02-09 2023-02-14
Revenue (MM) $2,618 $2,804 $3,331 $4,439 $4,759 $5,974
Operating Margins 28% 30% 30% 32% 34% 38%
Net Margins 63.0% 59.0% 47.0% 33.0% 62.0% 56.0%
Net Income (MM) $1,652 $1,649 $1,573 $1,482 $2,940 $3,365
Net Interest Expense (MM) -$274 -$229 -$240 -$315 -$266 -$309
Depreciation & Amort. (MM) -$879 -$947 -$1,140 -$1,562 -$1,578 -$1,813
Earnings Per Share $2.97 $2.78 $2.39 $1.95 $3.84 $4.14
EPS Growth n/a -6.4% -14.03% -18.41% 96.92% 7.81%
Diluted Shares (MM) 552 590 655 754 765 812
Free Cash Flow (MM) $3,847 $4,849 $5,208 $4,326 $5,486 $6,830
Capital Expenditures (MM) -$2,159 -$3,045 -$2,944 -$1,389 -$2,490 -$2,703
Net Current Assets (MM) -$9,952 -$11,651 -$12,151 -$18,072 -$19,518 -$29,225
Long Term Debt (MM) $9,413 $11,090 $11,906 $16,849 $17,715 $23,876

Prologis has strong margins with a positive growth rate, healthy debt levels, and positive EPS growth. Furthermore, Prologis has weak revenue growth and a flat capital expenditure trend and irregular cash flows.

Prologis's Valuation Is in Line With Its Sector Averages:

Prologis has a trailing twelve month P/E ratio of 33.3, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $2.8, the company has a forward P/E ratio of 44.0. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 3.7%. On this basis, the company's PEG ratio is 8.92, which suggests that it is overpriced. In contrast, the market is likely undervaluing Prologis in terms of its equity because its P/B ratio is 2.16 while the sector average is 2.24. The company's shares are currently trading 53.2% above their Graham number.

There's an Analyst Consensus of Some Upside Potential for Prologis:

The 21 analysts following Prologis have set target prices ranging from $128.0 to $162.0 per share, for an average of $142.81 with a buy rating. As of April 2023, the company is trading -13.8% 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 1.4% 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 $14,989,148,710.

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.

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