Tejon Ranch (NYSE:TRC) - Stock price, News & Analysis

TRC fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

TRC Stock Overview

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

Risk Analysis

Profit margins (3.6%) are lower than last year (18.6%)

Tejon Ranch Competitors

St. Joe

NYSE:JOE

US$2.7b

Five Point Holdings

NYSE:FPH

US$875.3m

First Hartford

OTCPK:FHRT

US$14.9m

Duke Realty

NYSE:DRE

US$22.2b

Price History & Performance

Summary of all time highs, changes and price drops for Tejon Ranch
Historical stock prices
Current Share Price	US$16.70
52 Week High	US$21.69
52 Week Low	US$14.79
Beta	0.54
1 Month Change	-9.68%
3 Month Change	-9.83%
1 Year Change	1.95%
3 Year Change	-9.04%
5 Year Change	-30.33%
Change since IPO	-61.61%

Recent News & Updates

Jan 12

Tejon Ranch: Owning A Californian Mountain Range

Tejon Ranch Company is the largest contiguous private landowner in California, with a plot of land about an hour north of Los Angeles. With planned recent approvals of new commercial and residential developments along the Interstate 5 corridor, future income looks brighter than in years prior. While a long-term horizon investment, I find at current prices the company is quite a safe and unique investment.

Nov 05

Is Tejon Ranch (NYSE:TRC) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Jun 04

Is Tejon Ranch (NYSE:TRC) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	TRC	US Real Estate	US Market
7D	-7.3%	-4.5%	-6.1%
1Y	2.0%	-40.9%	4.2%

Return vs Industry: TRC exceeded the US Real Estate industry which returned -40.9% over the past year.

Return vs Market: TRC underperformed the US Market which returned 4.2% over the past year.

Price Volatility

Is TRC's price volatile compared to industry and market?
TRC volatility
TRC Average Weekly Movement	4.2%
Real Estate Industry Average Movement	8.5%
Market Average Movement	6.7%
10% most volatile stocks in US Market	15.5%
10% least volatile stocks in US Market	2.4%

Stable Share Price: TRC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TRC's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1843	85	Greg Bielli	https://tejonranch.com

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 Development, Mineral Resources, Farming, and Ranch Operations. The Commercial/Industrial Real Estate Development segment engages in the planning and permitting of land for development; construction of infrastructure projects, pre-leased buildings, and buildings to be leased or sold; and sale of land to third parties for their own development.

Tejon Ranch Fundamentals Summary

How do Tejon Ranch's earnings and revenue compare to its market cap?
TRC fundamental statistics
Market Cap	US$440.21m
Earnings (TTM)	US$1.86m
Revenue (TTM)	US$51.88m

236.3x

P/E Ratio

8.5x

P/S Ratio

Is TRC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRC income statement (TTM)
Revenue	US$51.88m
Cost of Revenue	US$44.04m
Gross Profit	US$7.84m
Expenses	US$5.98m
Earnings	US$1.86m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.071
Gross Margin	15.11%
Net Profit Margin	3.59%
Debt/Equity Ratio	12.7%

How did TRC perform over the long term?

See historical performance and comparison

Valuation

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

236.31x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: TRC ($16.7) is trading above our estimate of fair value ($1.28)

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 (236.3x) compared to the US Real Estate industry average (15.7x).

PE vs Market: TRC is poor value based on its PE Ratio (236.3x) compared to the US market (16.5x).

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 (1.6x).

Future Growth

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

42.2%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Tejon Ranch has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Tejon Ranch performed over the past 5 years?

29.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TRC has high quality earnings.

Growing Profit Margin: TRC's current net profit margins (3.6%) are lower than last year (18.6%).

Past Earnings Growth Analysis

Earnings Trend: TRC's earnings have grown significantly by 29.3% per year over the past 5 years.

Accelerating Growth: TRC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TRC had negative earnings growth (-79.5%) over the past year, making it difficult to compare to the Real Estate industry average (85.5%).

Return on Equity

High ROE: TRC's Return on Equity (0.4%) is considered low.

Financial Health

How is Tejon Ranch's financial position?

Financial Position Analysis

Short Term Liabilities: TRC's short term assets ($61.8M) exceed its short term liabilities ($14.8M).

Long Term Liabilities: TRC's short term assets ($61.8M) do not cover its long term liabilities ($75.8M).

Debt to Equity History and Analysis

Debt Level: TRC's net debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: TRC's debt to equity ratio has reduced from 27.1% to 12.7% over the past 5 years.

Debt Coverage: TRC's debt is not well covered by operating cash flow (10.4%).

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

Balance Sheet

Dividend

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

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

Explore strong dividend paying companies in the Real Estate industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure

CEO

Greg Bielli (60 yo)

8.33yrs

Tenure

US$7,649,252

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 ($USD7.65M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Greg 's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: TRC's management team is considered experienced (4.6 years average tenure).

Board Members

Experienced Board: TRC's board of directors are considered experienced (9.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/01/22 23:34
End of Day Share Price	2022/01/21 00:00
Earnings	2021/09/30
Annual Earnings	2020/12/31