Terreno Realty (TRNO) AI Stock Analysis

• Market Cap: $6.82B
• Dividend Yield: 2.75%
• Average Volume (3M): 884.38K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.99
• Revenue Growth: 18.24%
• EPS Growth: 6.95%
• Country: US
• Employees: 49
• Sector: Real Estate
• Sector Strength: 72
• Industry: REITs
• EPS (TTM): 1.91
• Shares Outstanding: 99,777,660
• 10 Day Avg. Volume: 1,034,465
• 30 Day Avg. Volume: 884,380
• PEG Ratio: 5.14
• Price to Book (P/B): N/A
• Price to Sales (P/S): 17.84
• Price to Cash Flow (P/CF): 33.20
• P/FCF Ratio: 0.00
• 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: $69.54
• Price Target Upside: 1.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Terreno Realty exhibits strong financial performance with robust revenue growth and cash flow generation, which supports a solid stock score. The technical analysis suggests positive momentum but warns of potential short-term corrections due to overbought indicators. The valuation is high but justified by growth prospects, though it remains sensitive to any changes in growth expectations. Overall, Terreno Realty is a strong performer with a promising outlook, but short-term caution is advised due to technical indicators.

Positive Factors

Growth Potential

TRNO is upgraded to Buy due to expectations of strong growth driven by accretive acquisitions and no near-term refinance headwinds.

Market Position

The analyst believes TRNO is best positioned among its industrial REIT peers, driven by company-specific factors.

Negative Factors

Demand Challenges

Industrial estimate revisions were broadly revised lower over the past year due to weaker than expected demand, leading to higher vacancies and a slower rent recovery.

Terreno Realty Business Overview & Revenue Model

Company Description

Terreno Realty Corporation (TRNO) is a real estate investment trust (REIT) focused on acquiring, owning, and operating industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. The company targets properties in areas characterized by barriers to entry for new construction and high demand for industrial space, thereby providing significant growth potential and stable returns for investors.

How the Company Makes Money

Terreno Realty makes money primarily through leasing industrial properties to tenants, generating rental income. The company's revenue model is based on acquiring well-located industrial properties in high-demand markets, which allows it to command premium rental rates. Key revenue streams include rental income from long-term leases with a diverse range of tenants, minimizing risk by reducing dependency on any single industry or customer. Terreno also benefits from property value appreciation and strategic property enhancements, which can lead to increased rental rates and occupancy levels. Additionally, the company may engage in property sales when it aligns with its investment strategy, contributing to earnings through capital gains.

Terreno Realty Financial Statement Overview

Summary

Terreno Realty is well-positioned with strong revenue growth and profitability, as evidenced by high margins and consistent income growth. The balance sheet reflects a healthy leverage position and a strong equity base, though asset growth should be monitored. Cash flow generation is robust, highlighting effective cash management. Overall, Terreno Realty exhibits a solid financial foundation with promising growth prospects, but attention to operational efficiency is advisable.

Income Statement

Terreno Realty has demonstrated strong revenue growth with a consistent increase over the past years, culminating in a 18.2% growth in 2024. The gross profit margin is exceptionally high at 100%, indicating effective cost management. The net profit margin improved to 48.2% in 2024, reflecting enhanced profitability. However, the decline in EBITDA margin from 63.8% in 2023 to 24.5% in 2024 suggests increased operational expenses impacting earnings before depreciation and amortization.

Balance Sheet

The company maintains a robust financial position with a solid equity base, as indicated by an equity ratio of 76.8% in 2024. The debt-to-equity ratio decreased from 0.26 in 2023 to 0.13 in 2024, showing improved leverage management. Return on equity is strong at 5% in 2024, although there is a slight decline from previous years. Overall, the balance sheet reflects stability, but the significant increase in total assets warrants careful monitoring.

Cash Flow

Terreno Realty's cash flow performance is commendable, with a substantial increase in free cash flow from $126.6 million in 2023 to $232.7 million in 2024, resulting in an impressive free cash flow growth rate of 83.8%. The operating cash flow to net income ratio is favorable at 1.26, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 1.26 further underscores strong cash flow management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
382.62M	323.59M	276.21M	221.93M	186.88M
	Gross Profit
284.53M	244.50M	207.31M	165.68M	137.79M
	EBIT
284.53M	206.57M	127.43M	96.54M	74.72M
	EBITDA
299.33M	206.35M	287.63M	156.00M	141.67M
	Net Income Common Stockholders
184.50M	151.46M	198.01M	61.51M	58.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.07M	165.40M	26.39M	204.40M	107.18M
	Total Assets
4.77B	3.90B	3.16B	2.92B	2.14B
	Total Debt
472.95M	771.56M	770.82M	720.67M	459.12M
	Net Debt
454.88M	606.16M	744.42M	516.27M	351.94M
	Total Liabilities
1.11B	990.05M	934.59M	866.25M	551.64M
	Stockholders Equity
3.66B	2.91B	2.23B	2.06B	1.59B
Cash Flow		Free Cash Flow
232.69M	126.62M	76.60M	80.92M	69.44M
	Operating Cash Flow
232.69M	179.68M	143.21M	132.21M	101.05M
	Investing Cash Flow
-915.48M	-570.39M	-337.66M	-666.44M	-52.09M
	Financing Cash Flow
534.91M	528.86M	17.73M	631.20M	-53.87M

Terreno Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRNO, the sentiment is Positive. The current price of 68.4 is above the 20-day moving average (MA) of 67.32, above the 50-day MA of 64.08, and above the 200-day MA of 62.89, indicating a bullish trend. The MACD of 0.99 indicates Positive momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 75.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRNO.

Terreno Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLD	81 Outperform	$114.31B	30.03	6.97%	3.19%	2.22%	23.71%
FR	80 Outperform	$7.82B	26.50	10.99%	2.57%	9.06%	4.57%
STAG	79 Outperform	$6.96B	35.28	5.53%	4.02%	8.41%	-2.96%
REXR	74 Outperform	$9.29B	33.86	3.38%	4.13%	17.48%	7.45%
TRNO	73 Outperform	$6.82B	35.68	5.59%	2.75%	18.24%	6.95%
EGP	73 Outperform	$9.59B	39.61	7.72%	2.90%	12.35%	5.59%
Sector *	61 Neutral	$4.91B	18.99	-3.12%	7.77%	6.71%	-19.69%