Prologis logged a -1.3% change during today's morning session, and is now trading at a price of $106.7 per share.
Prologis returned gains of 6.0% last year, with its stock price reaching a high of $136.67 and a low of $100.64. 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 $118.08. 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 3.1% 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 31.9, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $2.76, the company has a forward P/E ratio of 42.8. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 5.7%. On this basis, the company's PEG ratio is 5.61, 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 1.85 while the sector average is 2.24. The company's shares are currently trading 30.9% above their Graham number.
Analysts Give Prologis an Average Rating of Buy:
The 21 analysts following Prologis have set target prices ranging from $125.0 to $162.0 per share, for an average of $140.48 with a buy rating. As of April 2023, the company is trading -15.9% away from its average target price, indicating that there is an analyst consensus of strong 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 $12,808,570,448.
