Now trading at a price of $111.34, Prologis has moved 0.7% so far today.
Over the last year, Prologis logged a -2.0% change, with its stock price reaching a high of $136.67 and a low of $96.64. Over the same period, the stock underperformed the S&P 500 index by -16.0%. As of April 2023, the company's 50-day average price was $108.87. 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 Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $2,804 | $3,331 | $4,439 | $4,759 | $5,974 | $7,722 |
| Operating Margins | 67.0% | 56.0% | 48.0% | 70.0% | 62.0% | 48.0% |
| Net Margins | 65.0% | 51.0% | 36.0% | 66.0% | 60.0% | 45.0% |
| Net Income (MM) | $1,823 | $1,702 | $1,617 | $3,149 | $3,555 | $3,467 |
| Net Interest Expense (MM) | $229 | $240 | $315 | $266 | $309 | $471 |
| Depreciation & Amort. (MM) | $947 | $1,140 | $1,562 | $1,578 | $1,813 | $2,218 |
| Earnings Per Share | $2.87 | $2.46 | $2.01 | $3.94 | $4.25 | $3.8 |
| Diluted Shares (MM) | 590 | 655 | 754 | 765 | 812 | 1,183 |
| Free Cash Flow (MM) | -$150 | $469 | $1,017 | $356 | $1,008 | $1,442 |
| Capital Expenditures (MM) | $1,953 | $1,795 | $1,920 | $2,640 | $3,118 | $3,368 |
| Net Current Assets (MM) | -$5,011 | -$12,176 | -$16,608 | -$17,098 | -$25,082 | -$29,424 |
| Long Term Debt (MM) | $11,090 | $11,906 | $16,849 | $17,715 | $23,876 | $28,129 |
| Net Debt / EBITDA | 3.79 | 3.62 | 4.41 | 3.5 | 4.29 | 4.65 |
Prologis has growing revenues and increasing reinvestment in the business and decent operating margins with a negative growth trend. Additionally, the company's financial statements display positive EPS growth and generally positive cash flows. However, the firm has a highly leveraged balance sheet.
Prologis's Valuation Is in Line With Its Sector Averages:
Prologis has a trailing twelve month P/E ratio of 34.7, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $2.66, the company has a forward P/E ratio of 40.9. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 4.8%. On this basis, the company's PEG ratio is 7.24, 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 1.92 while the sector average is 2.24. The company's shares are currently trading 78.7% above their Graham number.
Prologis Has an Analyst Consensus of Some Upside Potential:
The 21 analysts following Prologis have set target prices ranging from $119.0 to $154.0 per share, for an average of $133.76 with a buy rating. As of April 2023, the company is trading -18.6% 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 1.3% 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 $13,373,219,203.
