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Americold Realty (COLD)
NYSE:COLD
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Americold Realty
(NYSE:COLD)
49Neutral
Positive Factors
Financial Performance
4Q AFFO per share beat consensus and estimates, mostly due to cost savings.
Service Margins
Service revenue per pallet increased significantly, surpassing expectations.
Negative Factors
Occupancy Levels
Lack of visibility on occupancy trajectory is causing investors to pause.
Americold Realty (COLD) vs. S&P 500 (SPY)
Market Cap
$6.08B
Dividend Yield4.12%
Average Volume (3M)2.72M
Price to Earnings (P/E)―
Beta (1Y)0.46
Revenue Growth-0.25%
EPS Growth72.06%
CountryUS
Employees14,706
SectorReal Estate
Sector Strength73
IndustryREITs
Share Statistics
EPS (TTM)-0.33
Shares Outstanding284,393,920
10 Day Avg. Volume2,162,626
30 Day Avg. Volume2,717,911
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.28
Price to Cash Flow (P/CF)9.40
P/FCF Ratio1.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.50Price Target Upside28.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Americold Realty Business Overview & Revenue Model
Company DescriptionAmericold Realty Trust, Inc. (COLD) is a leading global owner and operator of temperature-controlled warehouses. The company is a real estate investment trust (REIT) that focuses on the storage and distribution of perishable goods. With a vast network of strategically located facilities, Americold provides essential infrastructure and services to food producers, distributors, and retailers across various sectors, ensuring the efficient management of the supply chain for temperature-sensitive products.
How the Company Makes MoneyAmericold Realty Trust primarily generates revenue through leasing its temperature-controlled warehouse space to tenants in the food industry. Its revenue model is centered around long-term contracts with food producers, distributors, and retailers who require reliable cold storage solutions. The company also earns income from value-added services such as inventory management, transportation, and logistics support, which complement its core warehousing services. Additionally, Americold's strategic partnerships and acquisitions help expand its network and customer base, further enhancing its revenue potential. The company's earnings are significantly influenced by factors such as location, facility utilization rates, and the overall demand for cold storage solutions in the food supply chain.
Americold Realty Financial Statement Overview
Summary
Americold Realty faces challenges in profitability and cash generation, with consistent net losses impacting overall financial health. While the company maintains a balanced leverage position, its ability to generate returns on equity is concerning. Stability in cash flows provides some reassurance, but the inconsistency in free cash flow growth and revenue calls for strategic improvements.Income Statement
Americold Realty has faced challenges with profitability, evidenced by consistent net losses over the years. The company demonstrated a negative net profit margin in 2024 and 2023, highlighting its struggle to convert revenue into profit. Revenue growth has been inconsistent, with a decline noted in recent years. While gross profit margins were positive in 2024, the EBIT and EBITDA margins were lower than ideal, indicating operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging. However, the return on equity is negative, indicating that the company is not generating a profit from shareholders' investments. The equity ratio is relatively stable, suggesting that a reasonable proportion of assets are financed by equity.55
Neutral
Cash Flow
Americold Realty's cash flow statement reflects a modest operating cash flow, but free cash flow growth has been inconsistent, with periods of negative free cash flow in previous years. The operating cash flow to net income ratio indicates that the company is generating cash despite net losses, but the free cash flow to net income ratio suggests limited cash available for reinvestment or dividends.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.67B | 2.67B | 2.91B | 2.71B | 1.99B | Gross Profit |
| 2.67B | 770.57M | 695.96M | 629.67M | 551.50M | EBIT |
| 124.01M | -108.31M | 127.59M | 128.49M | 168.45M | EBITDA |
| 392.96M | 165.76M | 467.14M | 448.33M | 325.15M | Net Income Common Stockholders |
| -94.31M | -336.21M | -19.47M | -30.31M | 24.54M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 47.65M | 60.39M | 53.06M | 82.96M | 621.05M | Total Assets |
| 7.74B | 7.87B | 8.10B | 8.22B | 7.83B | Total Debt |
| 3.68B | 3.49B | 3.58B | 3.42B | 3.23B | Net Debt |
| 3.63B | 3.43B | 3.53B | 3.34B | 2.61B | Total Liabilities |
| 4.43B | 4.23B | 4.32B | 4.19B | 4.04B | Stockholders Equity |
| 3.28B | 3.62B | 3.77B | 4.02B | 3.79B |
| Cash Flow | Free Cash Flow | |||
| 102.42M | 35.92M | -22.95M | -218.77M | -108.67M | Operating Cash Flow |
| 411.88M | 366.15M | 300.00M | 273.06M | 293.68M | Investing Cash Flow |
| -313.18M | -357.07M | -348.49M | -1.24B | -2.25B | Financing Cash Flow |
| -106.78M | -285.00K | 23.32M | 431.49M | 2.33B |
Americold Realty Technical Analysis
Negative
21.38
Price Trends
21.73
Negative
22.49
Negative
24.88
Negative
Market Momentum
-0.13
Positive
45.48
Neutral
14.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COLD, the sentiment is Negative. The current price of 21.38 is below the 20-day moving average (MA) of 21.97, below the 50-day MA of 21.73, and below the 200-day MA of 24.88, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 45.48 is Neutral, neither overbought nor oversold. The STOCH value of 14.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COLD.
Americold Realty Risk Analysis
Americold Realty disclosed 55 risk factors in its most recent earnings report. Americold Realty reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Americold Realty Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $7.49B | 25.38 | 10.99% | 2.69% | 9.06% | 4.57% | |
73 Outperform | $106.32B | 27.93 | 6.97% | 3.43% | 2.22% | 23.71% | |
73 Outperform | $9.36B | 38.64 | 7.72% | 2.97% | 12.35% | 5.59% | |
71 Outperform | $9.12B | 33.24 | 3.38% | 4.18% | 17.48% | 7.45% | |
68 Neutral | $6.75B | 34.20 | 5.53% | 4.17% | 8.41% | -2.96% | |
61 Neutral | $4.76B | 18.68 | -3.83% | 10.24% | 6.23% | -20.61% | |
49 Neutral | $6.08B | ― | -2.73% | 4.12% | -0.25% | 72.06% |
* Real Estate Sector Average
Performance Comparison
COLD
Americold Realty
21.38
-2.47
-10.36%
EGP
Eastgroup Properties
179.92
9.56
5.61%
PLD
Prologis
111.89
-13.13
-10.50%
STAG
Stag Industrial
35.45
-0.19
-0.53%
FR
First Industrial Realty
55.08
4.93
9.83%
REXR
Rexford Industrial Realty
39.99
-9.25
-18.79%
Americold Realty Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 1.71% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Americold's achievements in customer service recognition, margin improvement, and strategic expansion, indicating a strong operational performance. However, challenges remain with occupancy levels and underperforming facilities, leading to strategic exits and consolidation. While there are significant positive developments, the occupancy and non-same store NOI challenges present a balanced view.Highlights
Strong Customer Service and Recognition
Americold's facilities received multiple awards for exceptional customer service, including Site of the Year by ConAgra, Frozen Site of the Year from Kraft Heinz, and Site of the Year from Butterball.
Improved Economic Occupancy
Same-store economic occupancy improved slightly to almost 79% in Q4. Rent and storage revenues from fixed commitment storage contracts improved by 680 basis points year-over-year, reaching approximately 59%.
Record Same-Store NOI and Margin Improvement
Same-store warehouse services NOI exceeded $125 million, surpassing the $100 million commitment. The same-store warehouse services margin increased to 13%, up almost 7 percentage points from last year.
Expansion and Development Achievements
Americold exceeded its 2024 guide for announced starts, including a $150 million automated expansion in Dallas-Fort Worth, and announced a new import-export hub in Canada for $79 million.
Significant AFFO Growth
AFFO per share increased by 16% from 2023, with full-year AFFO in 2024 being $1.47 per share.
Lowlights
Occupancy Challenges
The company is guiding for flat economic occupancy in 2025, with a range of -100 to +100 basis points change from 2024.
Non-Same Store NOI Concerns
The non-same store pool generated negative $19 million of NOI for 2024, and is expected to generate only 0 to $7 million in 2025.
Portfolio Management and Facility Closures
Americold plans to exit five facilities in 2025, consolidating operations to manage costs and underperformance.
Company Guidance
During Americold Realty Trust's fourth quarter 2024 earnings call, the company provided guidance for 2025, focusing on improving operational efficiency and maintaining a strong customer service reputation. Key metrics highlighted included a same-store economic occupancy improvement to nearly 79% and a 680 basis point increase in rent and storage revenues from fixed commitment storage contracts, reaching approximately 59% in the fourth quarter. The company achieved a 13% margin in same-store warehouse services, a 7 percentage point increase from the previous year. For 2025, Americold projects a full-year AFFO per share range of $1.51 to $1.59, with a midpoint of $1.55, reflecting a 5% increase from 2024. The company also anticipates stable economic occupancy, throughput volume increases between 100 to 200 basis points, and sustained same-store warehouse services margins over 12%. Additionally, Americold plans to invest in a new $79 million import-export hub in Canada and a $34 million customer-dedicated expansion in New Zealand, as part of their development pipeline exceeding a billion dollars.Americold Realty Corporate Events
Business Operations and StrategyFinancial Disclosures
Americold Realty Reports Strong 2024 Financial Performance
Positive
Feb 20, 2025
Americold Realty Trust reported strong performance for the fourth quarter and full year of 2024, achieving significant growth in key metrics including a 16% increase in its Adjusted Funds from Operations (FFO) per share and a $125 million increase in Same Store Warehouse Services Net Operating Income (NOI). Despite a decrease in total revenues, the company improved its warehouse services margins and announced several strategic expansions, including a $79 million development in Canada and a $34 million expansion in New Zealand, which are expected to create long-term shareholder value.
Executive/Board Changes
Americold Realty Adjusts Compensation for CFO Jay Wells
Neutral
Jan 7, 2025
Americold Realty Trust, Inc. announced a market adjustment to the base salary and annual grant target value for Jay Wells, the company’s Executive Vice President and Chief Financial Officer, effective January 1, 2025. The adjustment raises Mr. Wells’s base salary from $575,000 to $640,000 and increases his annual equity award target value from $1,100,000 to $1,600,000, reflecting the company’s commitment to aligning compensation with market standards.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.