Tejon Ranch Company (TRC) AI Stock Analysis

• Market Cap: $432.38M
• Dividend Yield: N/A
• Average Volume (3M): 121.74K
• Price to Earnings (P/E): 161.6
• Beta (1Y): 0.75
• Revenue Growth: -6.38%
• EPS Growth: -17.99%
• Country: US
• Employees: 87
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial Conglomerates
• EPS (TTM): 0.10
• Shares Outstanding: 26,856,054
• 10 Day Avg. Volume: 157,203
• 30 Day Avg. Volume: 121,744
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.57
• Price to Cash Flow (P/CF): 8.20
• P/FCF Ratio: 8.20
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Tejon Ranch Company faces challenges with declining profitability and inconsistent cash flow, reflected in the financial performance score. While technical indicators show some stability, the high P/E ratio suggests overvaluation. The appointment of a new CEO with relevant experience is a positive strategic move, indicating potential for future growth.

Tejon Ranch Company Business Overview & Revenue Model

Company Description

Tejon Ranch Company (TRC) is a diversified real estate development and agribusiness company based in California. The company operates in several sectors including real estate development, agriculture, and resource management. Its core offerings include the development of master-planned residential, commercial, and industrial properties, as well as the management of a large-scale farming operation and natural resources on its expansive land holdings.

How the Company Makes Money

Tejon Ranch Company generates revenue primarily through its real estate development projects and agribusiness operations. The company monetizes its extensive land holdings by developing and selling residential, commercial, and industrial properties, often in master-planned communities. Additionally, TRC earns income from leasing land for various uses such as agriculture, energy production, and commercial activities. The company also benefits from its agricultural operations which involve the cultivation of crops and livestock management. Partnerships with developers and other businesses for joint ventures in real estate or resource utilization further contribute to the company's earnings.

Tejon Ranch Company Financial Statement Overview

Summary

Tejon Ranch Company's financial performance shows challenges in revenue and profitability, with declining income and negative margins. Despite a strong balance sheet supported by equity, the negative return on equity and inconsistent cash flow management highlight areas needing improvement.

Income Statement

The income statement reflects declining revenue with a negative growth trend from 2023 to 2024. Gross profit margin is consistent at 100%, but the company struggles with profitability, evidenced by negative EBIT and net income margins in 2024. Revenue growth has been inconsistent, with a significant drop in 2024 compared to previous years.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of about 77.9% in 2024. The debt-to-equity ratio is manageable at approximately 0.14, indicating low leverage. However, the declining net income impacts the return on equity, which is negative in 2024, highlighting potential risks in profitability.

Cash Flow

Cash flow analysis indicates positive operating cash flow in 2024, but free cash flow has only recently turned positive. The operating cash flow to net income ratio indicates poor conversion of net income to cash, and the free cash flow growth rate is volatile, reflecting inconsistent cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
41.89M	44.74M	79.22M	55.61M	37.83M
	Gross Profit
1.89M	6.17M	23.43M	9.58M	2.68M
	EBIT
-9.20M	-3.70M	13.73M	-317.00K	-6.75M
	EBITDA
-9.20M	969.00K	17.72M	4.33M	-1.70M
	Net Income Common Stockholders
2.69M	3.27M	15.81M	5.35M	-747.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.71M	64.46M	72.56M	47.18M	58.09M
	Total Assets
608.00M	577.52M	566.79M	546.04M	536.35M
	Total Debt
66.94M	47.94M	49.94M	52.63M	56.88M
	Net Debt
27.68M	16.04M	10.82M	16.43M	1.56M
	Total Liabilities
119.04M	94.43M	89.20M	89.53M	91.02M
	Stockholders Equity
473.59M	467.73M	462.23M	441.15M	429.96M
Cash Flow		Free Cash Flow
14.31M	-13.71M	-15.06M	-20.48M	-10.35M
	Operating Cash Flow
14.31M	13.65M	8.53M	2.82M	15.48M
	Investing Cash Flow
-25.75M	-14.00M	-1.89M	-14.65M	19.78M
	Financing Cash Flow
18.79M	-6.87M	-4.42M	-6.09M	-7.04M

Tejon Ranch Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRC, the sentiment is Positive. The current price of 16.08 is above the 20-day moving average (MA) of 15.75, above the 50-day MA of 15.88, and below the 200-day MA of 16.69, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.94 is Neutral, neither overbought nor oversold. The STOCH value of 76.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRC.

Tejon Ranch Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRNO	73 Outperform	$6.64B	35.15	5.59%	2.79%	18.24%	6.95%
FPI	73 Outperform	$513.84M	10.82	11.91%	2.20%	1.32%	108.94%
Sector *	62 Neutral	$8.25B	13.36	1.30%	3.05%	3.84%	-16.90%
CTO	61 Neutral	$591.95M	36.87	-0.37%	8.18%	14.11%	-667.02%
LMNR	61 Neutral	$327.52M	45.42	4.34%	1.59%	2.39%	―
LAND	58 Neutral	$391.52M	―	1.89%	5.15%	-5.73%	-5.33%
TRC	51 Neutral	$432.38M	161.64	0.57%	―	-6.38%	-17.99%

Tejon Ranch Company Corporate Events

Tejon Ranch Co. Announces Board Size Reduction

On March 12, 2025, Tejon Ranch Co. announced that Director Rhea Frawn Morgan will not seek reelection at the 2025 annual meeting, concluding her term. Subsequently, the Board decided to reduce its size from eleven to ten members effective immediately after the meeting. Morgan, who joined the board in January 2021, contributed significantly through her roles on various committees and her expertise in community development and private equity.

Tejon Ranch Company Appoints Matthew Walker as New CEO

On February 11, 2025, Tejon Ranch Company announced the appointment of Matthew Walker as the new President and CEO, effective March 31, 2025, succeeding Gregory S. Bielli who is retiring. Walker, with a 24-year career in real estate at Lowe Enterprises, brings extensive experience in resort and residential development, which will be crucial for Tejon Ranch’s future growth. The company plans to build on the success of its Tejon Ranch Commerce Center and its master planned communities, aiming to provide economic development opportunities and shareholder value.