Prologis Inc (PLD, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $101.79, Prologis Inc has witnessed a daily gain of 1.5%, marked against a three-month change of -6.2%. A thorough analysis, underlined by the GF Score, suggests that Prologis Inc is well-positioned for substantial growth in the near future.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 10/10
- Momentum rank: 7/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a GF Score of 94 out of 100, Prologis Inc signals the highest outperformance potential.
Understanding Prologis Inc Business
Prologis Inc was formed by the June 2011 merger of AMB Property and Prologis Trust. The company develops, acquires, and operates around 1.2 billion square feet of high-quality industrial and logistics facilities across the globe. The company also has a strategic capital business segment that has around $60 billion of third-party assets under management (AUM). Prologis Inc is organized into four global divisions (Americas, Europe, Asia, and other Americas) and operates as a real estate investment trust. With a market cap of $94.36 billion and sales amounting to $8.20 billion, Prologis Inc maintains an operating margin of 37.77%, showcasing its efficiency in operations.
Profitability Rank Breakdown
The Profitability Rank shows Prologis Inc's impressive standing among its peers in generating profit. Prologis Inc's Operating Margin has increased by 19.61% over the past five years, as shown by the following data: 2020: 31.58; 2021: 33.98; 2022: 38.17; 2023: 38.44; 2024: 37.77. Furthermore, Prologis Inc's Gross Margin has seen a consistent rise over the past five years, as evidenced by the data: 2020: 73.64; 2021: 73.77; 2022: 74.74; 2023: 74.94; 2024: 74.92. This trend underscores the company's growing proficiency in transforming revenue into profit. Prologis Inc's strong Predictability Rank of 4.5 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Prologis Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 11.4%, which outperforms better than 74.45% of 771 companies in the REITs industry. Moreover, Prologis Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 5.5, and the rate over the past five years is 11. This trend accentuates the company's continued capability to drive growth.
Conclusion: Prologis Inc's Path to Outperformance
Prologis Inc's financial strength, profitability, and growth metrics, as highlighted by the GF Score, underscore the firm's unparalleled position for potential outperformance. With a strong market presence and strategic initiatives, Prologis Inc is poised to capitalize on industry trends and continue its growth trajectory. For investors seeking companies with robust financial health and growth potential, Prologis Inc presents a compelling case. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
