Terreno Realty Corporation
Terreno Realty Corporation Fundamental Analysis
Terreno Realty Corporation (TRNO) shows strong financial fundamentals with a PE ratio of 16.95, profit margin of 84.59%, and ROE of 10.09%. The company generates $0.5B in annual revenue with strong year-over-year growth of 18.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TRNO's fundamental strength across five key dimensions:
Efficiency Score
WeakTRNO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTRNO trades at attractive valuation levels.
Growth Score
ModerateTRNO shows steady but slowing expansion.
Financial Health Score
ModerateTRNO shows balanced financial health with some risks.
Profitability Score
ModerateTRNO maintains healthy but balanced margins.
Key Financial Metrics
Is TRNO Expensive or Cheap?
P/E Ratio
TRNO trades at 16.95 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TRNO's PEG of 0.70 indicates potential undervaluation.
Price to Book
The market values Terreno Realty Corporation at 1.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.62 times EBITDA. This signals the market has high growth expectations.
How Well Does TRNO Make Money?
Net Profit Margin
For every $100 in sales, Terreno Realty Corporation keeps $84.59 as profit after all expenses.
Operating Margin
Core operations generate 40.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.09 in profit for every $100 of shareholder equity.
ROA
Terreno Realty Corporation generates $7.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Terreno Realty Corporation generates strong operating cash flow of $272.07M, reflecting robust business health.
Free Cash Flow
Terreno Realty Corporation generates strong free cash flow of $208.61M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.01 in free cash annually.
FCF Yield
TRNO converts 3.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How TRNO Stacks Against Its Sector Peers
| Metric | TRNO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.95 | 24.23 | Better (Cheaper) |
| ROE | 10.09% | 659.00% | Weak |
| Net Margin | 84.59% | 4497.00% | Weak |
| Debt/Equity | 0.23 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.08 | 13.87 | Weak Liquidity |
| ROA | 7.48% | -1390.00% (disorted) | Weak |
TRNO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Terreno Realty Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.90%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
260.73%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
65.74%
Industry Style: Income, Inflation Hedge, REIT
High Growth