Prologis (PLD) AI Stock Analysis

• Market Cap: $93.73B
• Dividend Yield: 3.94%
• Average Volume (3M): 6.31M
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.05
• Revenue Growth: 2.11%
• EPS Growth: 19.67%
• Country: US
• Employees: 2,703
• Sector: Real Estate
• Sector Strength: 77
• Industry: REIT - Industrial
• EPS (TTM): 3.96
• Shares Outstanding: 926,977,200
• 10 Day Avg. Volume: 9,400,821
• 30 Day Avg. Volume: 6,310,618
• PEG Ratio: 1.27
• Price to Book (P/B): N/A
• Price to Sales (P/S): 12.25
• Price to Cash Flow (P/CF): 18.80
• P/FCF Ratio: 16.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $119.20
• Price Target Upside: 19.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

Prologis exhibits strong financial performance with significant revenue growth and profitability, supported by a solid balance sheet. However, technical indicators suggest caution due to downward momentum. The valuation is moderately attractive, and the earnings call highlights strategic strengths despite some market uncertainties, resulting in a favorable overall score.

Positive Factors

Financial Performance

Prologis reported Q1 results with core FFO of $1.42, which was ahead of both the estimated $1.37 and consensus of $1.38.

Leasing Activity

Leasing activity reached a record high with 65.1M SF of new and renewal leases commenced, up 35.4% from the same quarter a year ago.

Strategic Capital Platform

PLD's strategic capital platform saw growth, with AUM increasing 2.9% sequentially and investment capacity increasing 10.1%.

Negative Factors

Development and Demand

Reduced development starts and contributions guidance could indicate lower demand, and some leading indicators remain soft.

Occupancy Rates

Occupancy declined to 95.2%, the lowest level since 3Q14.

Tariff Uncertainty

PLD adjusted its capital deployment guidance, including development starts and dispositions, due to tariff uncertainty.

Prologis Business Overview & Revenue Model

Company Description

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of December 31, 2020, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 984 million square feet (91 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfillment.

How the Company Makes Money

Prologis makes money primarily through the leasing of its vast portfolio of logistics facilities to a wide array of clients across various industries. The company's revenue model is primarily based on rental income from these leases, which are typically long-term agreements providing stable and predictable cash flows. In addition to leasing, Prologis generates revenue through development services by building new facilities tailored to specific client needs and then leasing or selling them. The company also earns fees from property management and development services provided to third parties and co-investment ventures. Strategic partnerships with large retailers, logistics companies, and e-commerce businesses further enhance its revenue streams, as these partnerships often lead to long-term leasing agreements and development projects.

Prologis Financial Statement Overview

Summary

Prologis demonstrates strong financial performance with robust revenue growth, high profitability, and a solid balance sheet with zero debt. The company effectively manages its capital and generates cash, despite a slight decline in free cash flow.

Income Statement

Prologis has shown strong revenue growth with a compound annual growth rate of around 18% over the past five years. The gross profit margin is consistently at 100% due to the nature of its REIT operations, and the net profit margin in the latest year is approximately 45% indicating high profitability. EBIT and EBITDA margins have shown improvement, standing at 54% and 64% respectively for 2024, reflecting effective cost management and operational efficiency.

Balance Sheet

Prologis maintains a strong balance sheet with zero debt in 2024, significantly reducing financial risk. The equity ratio is high at around 57%, indicating a solid equity base relative to total assets. ROE is approximately 7% in 2024, which, while moderate, reflects consistent returns on equity investment. Overall, the company demonstrates financial stability with minimal leverage.

Cash Flow

The company exhibits a strong cash flow position with a free cash flow growth rate of approximately -9% from 2023 to 2024, primarily due to changes in operating cash flow. The operating cash flow to net income ratio is robust at 1.32, indicating efficient conversion of income into cash. With a free cash flow to net income ratio of 1.32, Prologis effectively generates cash relative to its earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.20B	8.02B	5.97B	4.76B	4.44B
	Gross Profit
6.14B	6.01B	4.46B	3.51B	3.27B
	EBIT
4.42B	3.71B	2.57B	2.01B	1.69B
	EBITDA
7.53B	6.57B	4.40B	3.60B	3.26B
	Net Income Common Stockholders
3.73B	3.06B	3.36B	2.94B	1.48B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.32B	530.39M	278.48M	556.12M	598.09M
	Total Assets
95.33B	93.02B	87.90B	58.49B	56.07B
	Total Debt
31.49B	29.60B	25.41B	18.16B	17.34B
	Net Debt
30.18B	29.07B	25.14B	17.61B	16.74B
	Total Liabilities
36.71B	35.20B	30.03B	20.74B	19.74B
	Stockholders Equity
53.95B	53.18B	53.24B	33.43B	31.97B
Cash Flow		Free Cash Flow
4.91B	5.37B	3.58B	2.50B	1.69B
	Operating Cash Flow
4.91B	5.37B	4.13B	3.00B	2.94B
	Investing Cash Flow
-3.10B	-6.42B	-4.50B	-1.99B	-3.07B
	Financing Cash Flow
-999.96M	1.32B	115.79M	-1.01B	-372.16M

Prologis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 99.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLD, the sentiment is Negative. The current price of 99.95 is below the 20-day moving average (MA) of 102.42, below the 50-day MA of 111.50, and below the 200-day MA of 115.24, indicating a bearish trend. The MACD of -3.64 indicates Negative momentum. The RSI at 43.54 is Neutral, neither overbought nor oversold. The STOCH value of 81.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLD.

Prologis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLD	78 Outperform	$93.73B	24.90	6.97%	3.94%	2.11%	19.67%
STAG	72 Outperform	$6.11B	30.96	5.53%	4.62%	8.41%	-2.96%
EGP	71 Outperform	$8.15B	33.48	7.72%	3.51%	12.35%	5.59%
FR	70 Outperform	$6.20B	22.55	10.18%	3.27%	9.18%	-7.05%
REXR	69 Neutral	$7.49B	25.76	3.35%	5.31%	17.74%	12.12%
TRNO	66 Neutral	$5.75B	29.13	5.59%	3.44%	18.24%	6.95%
Sector *	59 Neutral	$2.72B	11.53	0.09%	8679.99%	5.56%	-16.50%

Prologis Corporate Events

Prologis Reports Strong Q1 2025 Financial Results

On April 16, 2025, Prologis, Inc. announced its first quarter financial results for 2025, highlighting a strong performance with total revenues of $2.14 billion, an increase from $1.96 billion in the same period of 2024. The company reported net earnings attributable to common stockholders of $592 million and a Core FFO of $1.42 per share, reflecting its robust market position and strategic capital initiatives. Prologis continues to focus on expanding its development portfolio and maintaining high occupancy rates, which are expected to positively impact its future financial performance.

Spark’s Take on PLD Stock

According to Spark, TipRanks’ AI Analyst, PLD is a Outperform.

Prologis’s strong financial performance and positive earnings call sentiment are the primary strengths driving the stock score. While the technical analysis suggests caution due to downward momentum, the company’s robust valuation and strategic corporate events provide additional support, resulting in a favorable overall score.

To see Spark’s full report on PLD stock, click here.

Prologis Reports Strong Q1 2025 Financial Results

On April 16, 2025, Prologis, Inc. announced its financial results for the first quarter of 2025, highlighting a strong performance with total revenues of $2.14 billion, up from $1.96 billion in the same period in 2024. The company reported net earnings attributable to common stockholders of $592 million, reflecting a slight increase from $584 million in the previous year. Prologis also emphasized its significant development activities, with $963 million in value creation from stabilizations and a robust pipeline of development starts and acquisitions planned for the year. The announcement underscores Prologis’s continued growth and strategic positioning in the logistics real estate market, with implications for stakeholders in terms of increased dividends and solid financial health.

Spark’s Take on PLD Stock

According to Spark, TipRanks’ AI Analyst, PLD is a Outperform.

Prologis’s strong financial performance and positive earnings call sentiment are the primary strengths driving the stock score. While the technical analysis suggests caution due to downward momentum, the company’s robust valuation and strategic corporate events provide additional support, resulting in a favorable overall score.

To see Spark’s full report on PLD stock, click here.

Prologis Announces CEO Transition with Dan Letter

Prologis announced a leadership transition with CEO Hamid R. Moghadam set to retire on January 1, 2026, after over four decades of leadership. Dan Letter, the current President, will succeed Moghadam as CEO and has been appointed to the Board of Directors as of February 19, 2025. This transition is part of Prologis’s strategic planning to ensure continued growth and leverage Letter’s extensive experience within the company.

Prologis Announces CEO Transition Effective 2026

Prologis announced a leadership transition with CEO Hamid R. Moghadam set to retire effective January 1, 2026, while continuing as Executive Chairman. Daniel S. Letter, currently the company’s President, will succeed Moghadam as CEO and has been appointed to the Board of Directors, highlighting a carefully planned succession to ensure the company’s ongoing success and growth.