ProLogis Inc Stock Upgraded (PLD)
NEW YORK (
)
-- ProLogis
(NYSE:
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- PLD's very impressive revenue growth greatly exceeded the industry average of 18.5%. Since the same quarter one year prior, revenues leaped by 123.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.87, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- PROLOGIS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PROLOGIS INC reported poor results of -$6.79 versus -$1.19 in the prior year. This year, the market expects an improvement in earnings (-$0.19 versus -$6.79).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, PROLOGIS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to $122.17 million or 3.05% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
Prologis Inc. is an independent equity real estate investment trust. It invests in the real estate markets across the globe. The firm engages in the ownership, development, management, and leasing of industrial distribution and retail properties. The company has a P/E ratio of 85.6, above the S&P 500 P/E ratio of 17.7. ProLogis has a market cap of $14.75 billion and is part of the
sector and
industry. Shares are up 10.5% year to date as of the close of trading on Tuesday.
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