Prologis Intrinsic Stock Value – Prologis Stock Rises, But Falls Short of Market Performance: Here’s What You Need to Know
December 15, 2023
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Prologis ($NYSE:PLD) Inc (PLD) is a real estate investment trust focused on industrial and logistics properties around the world. While this rise is impressive, it still lags behind the performance of the overall market over the same period. To better understand why Prologis stock has not kept up with the market, it is important to look at the company’s performance compared to other real estate investments. Prologis has seen some strong financial results in recent quarters, with revenue growing steadily and operating margin expanding.
However, it has not been able to match the gains that have been seen in other sectors such as technology and healthcare. There have also been some concerns about the company’s ability to manage its large debt load, which has been a burden on the stock.
Additionally, there have been worries about the potential for a slowdown in the industrial sector, which could negatively impact Prologis’ performance. To sum up, Prologis stock has seen impressive gains year-to-date but still falls short of the overall market performance. To gain a better understanding of why this is so, investors should look at Prologis’ performance compared to other real estate investments, its potential for managing its debt load, and any potential headwinds in the industrial sector.
Stock Price
On Wednesday, PROLOGIS stock opened at $122.4 and closed at $129.2, representing a rise of 5.9% from its last closing price of 122.1. The stock rose significantly on Wednesday despite the lack of any major news or announcements from the company. Analysts have pointed to higher investor optimism about the industrial real estate market and the company’s ability to capitalize on the surge in e-commerce demand as the primary reasons for the gains on Wednesday.
Despite the positive performance, Prologis stock is still behind most of its peers, with competitors such as Duke Realty Corporation and Digital Realty Trust outperforming the stock year-to-date. Investors looking to buy PROLOGIS stock should be aware that while the stock has had a strong rally this week, it could be volatile in the near term given the uncertainty surrounding the economy. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Prologis. More…
| Total Revenues | Net Income | Net Margin |
| 7.89k | 3.01k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Prologis. More…
| Operations | Investing | Financing |
| 5.58k | -6.5k | 1.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Prologis. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 91.95k | 33.69k | 57.98 |
Key Ratios Snapshot
Some of the financial key ratios for Prologis are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 38.6% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Prologis Intrinsic Stock Value
GoodWhale has conducted an analysis of PROLOGIS’s wellbeing and we have determined that the fair value of its shares is around $110.5. This is calculated through our proprietary Valuation Line. Prologis_Stock_Rises_But_Falls_Short_of_Market_Performance_Heres_What_You_Need_to_Know”>More…
Peers
Prologis Inc is one of the world’s leading logistics real estate companies with a global portfolio of approximately 946 million square feet. The company’s properties are located in 19 countries across North America, Europe, Asia and Latin America. Prologis’ tenants include some of the world’s largest third-party logistics providers and e-commerce companies. The company’s competitors include Frasers Logistics & Commercial Trust, Daiwa House Logistics Trust and Sabana Industrial REIT.
– Frasers Logistics & Commercial Trust ($SGX:BUOU)
Frasers Logistics & Commercial Trust has a market cap of 4.1B as of 2022. The company is a trust that focuses on logistics and commercial properties in Australia, Europe, and North America. The trust’s portfolio consists of warehouses, distribution centers, retail properties, and office buildings.
– Daiwa House Logistics Trust ($SGX:DHLU)
Daiwa House Logistics Trust is a Japanese real estate investment trust (REIT) that was established in 2010. The company’s portfolio consists of logistics properties located in Japan and China. As of March 31, 2021, Daiwa House Logistics Trust had a total market capitalization of ¥378.54 billion.
– Sabana Industrial REIT ($SGX:M1GU)
Sabana Industrial REIT has a market cap of 443.93M as of 2022. The company is a Singapore-based real estate investment trust (REIT) that owns and manages a portfolio of industrial properties in Singapore. The REIT’s portfolio comprises of 63 properties, with a total gross floor area of approximately 7.1 million square feet. The REIT’s properties are located in major industrial districts in Singapore, such as Jurong Island, Tuas, Woodlands, Changi, and Ang Mo Kio.
Summary
Prologis is a major real estate investment trust (REIT) that develops and manages industrial and logistics properties worldwide. Its stock price has been steadily on the rise over the past year, though it has lagged behind the broader market. This could be attributed to the fact that the company is currently dealing with a challenging tenant base, coupled with higher levels of economic risk across the globe. Investors should watch for changes in the company’s leasing activity, which could indicate future trends in the stock price.
Furthermore, the company’s dividend payout, which is currently above average in its sector, is also something to keep an eye on. In sum, Prologis has long-term potential, but investors should remain informed of any shifts in fundamentals to make the most informed decision.
