Tejon Ranch Co (TRC) stock analysis

P/E below its 5-year median

Tejon Ranch's P/E of 60.9 is below its own 5-year median of 113.8.

P/E above the industry

Tejon Ranch's P/E of 60.9 is above the Real estate median of 17.3.

EV/EBITDA below its 5-year median

Tejon Ranch's EV/EBITDA of 43.6 is below its 5-year median of 69.4.

P/B above the industry

Tejon Ranch's price-to-book of 0.99 is above the Real estate median of 0.84.

Trading above fair value

The share price of $17.65 is above our fair value estimate of $13.23.

Margin of safety under 20%

The price is 33.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -14.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 45.4% over the last twelve months; the Real estate median is 5.4%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 33.1% over the last twelve months, against 34.8% a year earlier.

Return on equity under 15%

Return on equity was 1.6% over the last twelve months and averaged 1.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 0.5%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Tejon Ranch's return on equity of 1.6% is above the Real estate median of 1.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 11.4% over the last twelve months, against a 5-year average of 8.5%.

Net margin above the industry

Tejon Ranch's net margin of 11.4% is above the Real estate median of 8.6%.

No debt

Tejon Ranch has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.85 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.31; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Tejon Ranch has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.