Prologis (PLD) AI Stock Analysis

• Market Cap: $110.72B
• Dividend Yield: 3.44%
• Average Volume (3M): 3.28M
• Price to Earnings (P/E): 31.2
• Beta (1Y): 0.99
• Revenue Growth: 10.20%
• EPS Growth: 23.28%
• Country: US
• Employees: 2,703
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.61
• Shares Outstanding: 928,063,000
• 10 Day Avg. Volume: 3,555,261
• 30 Day Avg. Volume: 3,280,756
• PEG Ratio: 1.19
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 11.94
• P/FCF Ratio: 19.93
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 16.28
• Enterprise Value/Gross Profit: 21.60
• Enterprise Value/Ebitda: 18.94
• 1Y Price Target: $122.20
• Price Target Upside: 5.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 78 Outperform
• Price Target: $129.00 ▲(11.09% Upside)

Prologis' strong financial performance and positive earnings call guidance are the most significant factors contributing to its score. The technical indicators suggest a stable upward trend, while valuation concerns are mitigated by a solid dividend yield. Despite some market challenges, the company's strategic initiatives and robust cash flow position it well for future growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Prologis' logistics facilities, supporting long-term expansion and market leadership.

High Occupancy and Rent Growth

High occupancy rates and rent growth reflect strong demand for Prologis' properties, ensuring stable cash flows and competitive advantage.

Robust Cash Flow

Strong cash flow generation supports Prologis' ability to fund operations, invest in growth, and maintain financial stability.

Negative Factors

Rising Debt Levels

Increasing debt levels may strain financial flexibility and cash flow, potentially impacting Prologis' long-term financial health.

Subdued Net Absorption

Subdued net absorption indicates potential market saturation or reduced demand, which could limit future growth opportunities.

Market Rent Decline

Declining market rents may pressure revenue growth and profitability, challenging Prologis' ability to maintain its margins.

Prologis Business Overview & Revenue Model

Company Description

Prologis, Inc. (NYSE: PLD) is a leading global logistics real estate investment trust (REIT) headquartered in San Francisco, California. The company focuses on the development, acquisition, and management of industrial properties, primarily in high-demand markets. Prologis specializes in logistics facilities that support the supply chain needs of various sectors, including e-commerce, retail, and consumer goods, offering a range of core products such as warehouses and distribution centers.

How the Company Makes Money

Prologis generates revenue primarily through leasing its industrial properties to a diverse clientele, including logistics companies, retailers, and manufacturers. The company earns rental income from long-term leases, which provide a stable cash flow. Additionally, Prologis benefits from property management fees and development profits when it builds new facilities or redevelops existing ones. Strategic partnerships with major e-commerce and logistics firms also enhance its market position and contribute to its earnings, as these companies often seek high-quality, strategically located distribution centers to optimize their supply chains. Furthermore, Prologis engages in joint ventures and co-investments, which allow it to share risks and returns while expanding its portfolio.

Prologis Financial Statement Overview

Summary

Prologis demonstrates strong financial health with consistent revenue growth and high profitability margins. The balance sheet is stable with moderate leverage, though rising debt levels warrant attention. Cash flow generation is robust, supporting the company's operational and financial strategies.

Income Statement

Prologis demonstrates strong revenue growth with a TTM revenue increase of 2.1%. The company maintains high profitability with a gross profit margin of 75.3% and a net profit margin of 40.3%. EBIT and EBITDA margins are robust at 55.4% and 85.9%, respectively, indicating efficient operations. However, the net profit margin has slightly decreased from the previous year, suggesting potential cost pressures.

Balance Sheet

The balance sheet reflects a healthy debt-to-equity ratio of 0.66, indicating moderate leverage. Return on equity is stable at 6.5%, showing consistent profitability. The equity ratio stands at 54%, suggesting a solid equity base. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Prologis shows a positive free cash flow growth rate of 7.5% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 2.41, indicating efficient cash conversion. The free cash flow to net income ratio remains at 1.0, suggesting all net income is converted into free cash flow. Despite these strengths, the reliance on operating cash flow for free cash flow generation could be a concern if operational performance declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.56B	8.20B	8.02B	5.97B	4.76B	4.44B
Gross Profit	6.45B	6.14B	6.01B	4.46B	3.51B	3.27B
EBITDA	7.36B	7.53B	6.57B	5.80B	5.15B	3.61B
Net Income	3.45B	3.73B	3.06B	3.36B	2.94B	1.48B
Balance Sheet
Total Assets	97.72B	95.33B	93.02B	87.90B	58.49B	56.07B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.32B	530.39M	278.48M	556.12M	598.09M
Total Debt	34.67B	31.49B	29.60B	24.51B	18.16B	17.34B
Total Liabilities	40.41B	36.71B	35.20B	30.03B	20.74B	19.74B
Stockholders Equity	52.73B	53.95B	53.18B	53.24B	33.43B	31.97B
Cash Flow
Free Cash Flow	5.17B	4.91B	5.37B	3.58B	2.50B	1.69B
Operating Cash Flow	5.17B	4.91B	5.37B	4.13B	3.00B	2.94B
Investing Cash Flow	-3.98B	-3.10B	-6.42B	-4.50B	-1.99B	-3.07B
Financing Cash Flow	-740.16M	-999.96M	1.32B	115.79M	-1.01B	-372.16M

Prologis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLD, the sentiment is Positive. The current price of 116.12 is above the 20-day moving average (MA) of 113.71, above the 50-day MA of 110.08, and above the 200-day MA of 108.04, indicating a bullish trend. The MACD of 1.44 indicates Negative momentum. The RSI at 62.54 is Neutral, neither overbought nor oversold. The STOCH value of 85.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLD.

Prologis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLD	78 Outperform	$110.72B	31.20	6.50%	3.44%	10.20%	23.28%
TRNO	76 Outperform	$5.96B	22.96	6.45%	3.45%	22.17%	40.80%
REXR	76 Outperform	$9.79B	31.12	3.59%	4.13%	13.66%	11.34%
FR	74 Outperform	$7.11B	25.46	10.25%	3.31%	9.66%	-4.60%
STAG	73 Outperform	$6.82B	28.30	6.80%	4.14%	8.56%	22.20%
LXP	69 Neutral	$2.78B	34.01	4.24%	5.75%	6.64%	210.89%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Prologis Corporate Events

Prologis Reports Q2 2025 Revenue Growth to $2.18B

On July 16, 2025, Prologis, Inc. announced its financial results for the second quarter of 2025, highlighting a total revenue increase to $2.18 billion from $2.01 billion in the same quarter of the previous year. Despite a decrease in net earnings attributable to common stockholders, the company reported growth in Core FFO and AFFO, reflecting strong operational performance and strategic capital revenues. The announcement underscores Prologis’ robust market positioning and its continued expansion in the logistics real estate sector, which is crucial for stakeholders monitoring the company’s financial health and strategic direction.

Prologis Reports Q2 2025 Financial Results

On July 16, 2025, Prologis, Inc. announced its financial results for the second quarter of 2025, highlighting a total revenue increase to $2.18 billion from $2.01 billion in the same period last year. The company’s net earnings attributable to common stockholders were $570 million, a decrease from $860 million in the previous year, reflecting changes in market conditions and operational adjustments. Prologis continues to show strong performance in its core business areas, with significant investments in development and strategic capital, positioning itself well for future growth.

Prologis CIO Joseph Ghazal to Step Down

On June 17, 2025, Prologis announced that its Chief Investment Officer, Joseph Ghazal, has decided to step down from his executive role effective July 1, 2025. Ghazal will continue with the company until July 10, 2026, to ensure a smooth transition, which may impact the company’s strategic investment operations during this period.

Prologis CIO Joseph Ghazal to Step Down

On June 17, 2025, Prologis announced that Joseph Ghazal, the Chief Investment Officer, will step down from his executive role effective July 1, 2025. Ghazal will remain with the company until July 10, 2026, to ensure a smooth transition, which may impact Prologis’s investment strategies and stakeholder relations during this period.

Prologis Enters $3 Billion Global Credit Agreement

On May 22, 2025, Prologis, L.P. and its affiliates entered into an Amended and Restated Global Senior Credit Agreement, known as the 2025 Global Facility, with various lenders and Bank of America, N.A. This agreement allows Prologis to obtain loans and issue letters of credit up to $3 billion, with the facility maturing in 2029 and options to extend. The agreement includes two tranches in U.S. Dollars and Euros, and its terms are influenced by Prologis’ public debt ratings. This strategic financial move is expected to enhance Prologis’ operational flexibility and strengthen its position in the logistics real estate market.

Prologis Secures $3 Billion Global Credit Facility

On May 22, 2025, Prologis, L.P. and its affiliates entered into an Amended and Restated Global Senior Credit Agreement with various lenders and Bank of America, N.A. as the Global Administrative Agent. This agreement, known as the 2025 Global Facility, allows the company to obtain loans and issue letters of credit up to $3 billion, with the possibility of increasing this by an additional $1 billion. The facility includes a U.S. Dollar Tranche and a Euro Tranche, and is set to mature on June 29, 2029, with options for two six-month extensions. The agreement includes customary financial covenants and guarantees, and its terms are influenced by the public debt ratings of the Operating Partnership.