NYSE:TRC

Stock Analysis Report

Executive Summary

Tejon Ranch Co. operates as a diversified real estate development and agribusiness company.

Snowflake

Fundamentals

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has Tejon Ranch's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.4%

TRC

-0.2%

US Real Estate

0.07%

US Market


1 Year Return

-15.0%

TRC

8.6%

US Real Estate

8.9%

US Market

Return vs Industry: TRC underperformed the US Real Estate industry which returned 8.6% over the past year.

Return vs Market: TRC underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

TRCIndustryMarket
7 Day-0.4%-0.2%0.07%
30 Day-5.7%-1.4%-0.3%
90 Day-7.1%-2.0%-1.6%
1 Year-15.0%-15.0%9.6%8.6%11.3%8.9%
3 Year-30.1%-30.1%27.9%24.9%46.3%36.8%
5 Year-44.5%-44.5%8.5%5.0%62.1%44.3%

Price Volatility Vs. Market

How volatile is Tejon Ranch's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tejon Ranch undervalued compared to its fair value and its price relative to the market?

92.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRC ($16.51) is trading above our estimate of fair value ($2.26)

Significantly Below Fair Value: TRC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRC is poor value based on its PE Ratio (92.9x) compared to the Real Estate industry average (21.6x).

PE vs Market: TRC is poor value based on its PE Ratio (92.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TRC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TRC is good value based on its PB Ratio (1x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

How is Tejon Ranch forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRC's forecast earnings growth (39.5% per year) is above the savings rate (2.7%).

Earnings vs Market: TRC's earnings (39.5% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if TRC's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if TRC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TRC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tejon Ranch performed over the past 5 years?

-16.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TRC's earnings have declined by -16% per year over the past 5 years.

Accelerating Growth: TRC's earnings growth over the past year (523.6%) exceeds its 5-year average (-16% per year).

Earnings vs Industry: TRC earnings growth over the past year (523.6%) exceeded the Real Estate industry -22.6%.


Return on Equity

High ROE: TRC's Return on Equity (1.1%) is considered low.


Return on Assets

ROA vs Industry: TRC's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: TRC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Tejon Ranch's financial position?


Financial Position Analysis

Short Term Liabilities: TRC's short term assets ($74.5M) exceeds its short term liabilities ($14.1M)

Long Term Liabilities: TRC's short term assets (74.5M) do not cover its long term liabilities (79.8M)


Debt to Equity History and Analysis

Debt Level: TRC's debt to equity ratio (15.3%) is considered satisfactory

Reducing Debt: TRC's debt to equity ratio has increased from 4.8% to 15.3% over the past 5 years.

Debt Coverage: TRC's debt is not well covered by operating cash flow (12.8%).

Interest Coverage: Insufficient data to determine if TRC's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: TRC has a high level of physical assets or inventory.

Debt Coverage by Assets: TRC's debt is covered by short term assets (assets are 1.122710x debt).


Next Steps

Dividend

What is Tejon Ranch's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate TRC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TRC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if TRC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TRC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Tejon Ranch's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Greg Bielli (58yo)

5.8yrs

Tenure

US$2,252,946

Compensation

Mr. Gregory S. Bielli, also known as Greg, has been the President and Chief Executive Officer of Tejon Ranch Co. since September 2013 and December 17, 2013 respectively. Mr. Bielli served as Regional Presi ...


CEO Compensation Analysis

Compensation vs. Market: Greg 's total compensation ($USD2.25M) is about average for companies of similar size in the US market ($USD1.81M).

Compensation vs Earnings: Greg 's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: TRC's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

65yo

Average Age

Experienced Board: TRC's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

Insider Buying: TRC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$174,96228 Aug 19
Daniel Tisch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,847
Max PriceUS$16.13
BuyUS$1,156,60101 Jul 19
Daniel Tisch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares70,097
Max PriceUS$16.50
BuyUS$645,45127 Jun 19
Daniel Tisch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares39,453
Max PriceUS$16.36
BuyUS$38,93706 Jun 19
Towerview LLC
EntityCompany
Shares2,426
Max PriceUS$16.05
BuyUS$78,89004 Jun 19
Towerview LLC
EntityCompany
Shares4,900
Max PriceUS$16.10
BuyUS$105,16903 Jun 19
Towerview LLC
EntityCompany
Shares6,508
Max PriceUS$16.16
BuyUS$16,20030 May 19
Towerview LLC
EntityCompany
Shares1,000
Max PriceUS$16.20
BuyUS$79,91524 May 19
Towerview LLC
EntityCompany
Shares4,933
Max PriceUS$16.20

Ownership Breakdown


Management Team

  • Allen Lyda (61yo)

    Executive VP

    • Tenure: 0.8yrs
    • Compensation: US$998.88k
  • Barry Zoeller

    Senior Vice President of Corporate Communication & Investor Relations

    • Tenure: 15.8yrs
  • Greg Bielli (58yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$2.25m
  • Michael R. Houston (44yo)

    Senior VP & General Counsel

    • Tenure: 3.4yrs
    • Compensation: US$638.21k
  • Hugh McMahon (52yo)

    Executive Vice President of Real Estate

    • Tenure: 4.8yrs
    • Compensation: US$733.40k
  • Joe Rentfro (50yo)

    Executive Vice President of Real Estate

    • Tenure: 4.6yrs
    • Compensation: US$679.54k
  • Robert Velasquez (53yo)

    Senior VP of Finance & CFO

    • Tenure: 0.8yrs
  • Tim Li

    VP & Controller

    • Tenure: 3.9yrs
  • Michael Campeau

    Senior Vice President of Ranch Operations

    • Tenure: 0yrs
  • Trey Irwin

    Senior Vice President of Agriculture

    • Tenure: 0yrs

Board Members

  • Norman Metcalfe (76yo)

    Independent Chairman of the Board

    • Tenure: 5.8yrs
    • Compensation: US$106.43k
  • Geoffrey Stack (75yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$96.44k
  • Mike Winer (63yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$96.44k
  • Greg Bielli (58yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$2.25m
  • Dan Tisch (68yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$81.42k
  • Steve Betts (61yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$96.44k
  • Anthony Leggio (67yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$96.44k
  • Jean Fuller (61yo)

    Director

    • Tenure: 0.8yrs

Company Information

Tejon Ranch Co.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tejon Ranch Co.
  • Ticker: TRC
  • Exchange: NYSE
  • Founded: 1843
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: US$428.617m
  • Shares outstanding: 25.96m
  • Website: https://tejonranch.com

Number of Employees


Location

  • Tejon Ranch Co.
  • 4436 Lebec Road
  • Lebec
  • California
  • 93243
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRCNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1973
2TJDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1973

Biography

Tejon Ranch Co. operates as a diversified real estate development and agribusiness company. It operates through five segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:43
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.