Prologis, Inc.
Prologis, Inc. Fundamental Analysis
Prologis, Inc. (PLD) shows weak financial fundamentals with a PE ratio of 39.72, profit margin of 37.86%, and ROE of 6.28%. The company generates $8.7B in annual revenue with weak year-over-year growth of 2.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PLD's fundamental strength across five key dimensions:
Efficiency Score
WeakPLD struggles to generate sufficient returns from assets.
Valuation Score
WeakPLD trades at a premium to fair value.
Growth Score
ModeratePLD shows steady but slowing expansion.
Financial Health Score
ModeratePLD shows balanced financial health with some risks.
Profitability Score
ModeratePLD maintains healthy but balanced margins.
Key Financial Metrics
Is PLD Expensive or Cheap?
P/E Ratio
PLD trades at 39.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PLD's PEG of 12.49 indicates potential overvaluation.
Price to Book
The market values Prologis, Inc. at 2.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.47 times EBITDA. This signals the market has high growth expectations.
How Well Does PLD Make Money?
Net Profit Margin
For every $100 in sales, Prologis, Inc. keeps $37.86 as profit after all expenses.
Operating Margin
Core operations generate 40.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.28 in profit for every $100 of shareholder equity.
ROA
Prologis, Inc. generates $3.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Prologis, Inc. generates strong operating cash flow of $4.96B, reflecting robust business health.
Free Cash Flow
Prologis, Inc. generates strong free cash flow of $4.96B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.34 in free cash annually.
FCF Yield
PLD converts 3.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How PLD Stacks Against Its Sector Peers
| Metric | PLD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.72 | 24.23 | Worse (Expensive) |
| ROE | 6.28% | 659.00% | Weak |
| Net Margin | 37.86% | 4497.00% | Weak |
| Debt/Equity | 0.66 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.23 | 13.87 | Weak Liquidity |
| ROA | 3.37% | -1390.00% (disorted) | Weak |
PLD outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Prologis, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.59%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
66.27%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
52.07%
Industry Style: Income, Inflation Hedge, REIT
High Growth