Tejon Ranch Company (TRC) AI Stock Analysis

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Tejon Ranch Company

(NYSE:TRC)

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Rating:54Neutral

Price Target:$17.00▼(-3.68% Downside)

Action:reiterated

Date:11/06/26

The score is driven primarily by mixed financial quality: a conservative, low-leverage balance sheet and improving TTM profitability are meaningfully offset by persistently negative free cash flow. Technicals are mildly positive but not strongly uptrending, while valuation is a key headwind due to the high P/E and no dividend support. The latest earnings call was generally constructive on operating momentum and project progress, but it also reinforced that the cash flow and cost transformation is still in progress.

Positive Factors

Conservative Balance SheetLow leverage and a growing equity base provide financial resilience while the company advances development projects and land monetization. This structure can reduce balance-sheet strain, preserve borrowing capacity, and give management greater flexibility to fund opportunities over the next several quarters.

Negative Factors

Persistent Negative Free Cash FlowSustained negative free cash flow indicates that reinvestment, capital spending, or working-capital needs continue to exceed internally generated cash. This can limit self-funded growth, increase reliance on financing or asset monetization, and constrain durable capital allocation flexibility.

Tejon Ranch Company (TRC) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $477.15M
Dividend Yield: ―
Average Volume (3M): 147.10K
Price to Earnings (P/E): 62.1
Beta (1Y): 0.23
Revenue Growth: 45.37%
EPS Growth: 155.95%
Country: US
Employees: 65
Sector: Industrials
Sector Strength: 63
Industry: Conglomerates

Tejon Ranch Company Business Overview & Revenue Model

Company Description

Tejon Ranch Co., through its various subsidiaries, operates as a multifaceted enterprise primarily focused on real estate development and agricultural operations. Its business is structured across five distinct divisions: Commercial/Industrial Real E...

How the Company Makes Money

TRC makes money primarily by monetizing the economic value of its land through a mix of real estate development-related activities and ongoing land operations. Key revenue streams include: (1) Land sales and development transactions: TRC can generate...

Tejon Ranch Company Earnings Call Summary

Earnings Call Date:Nov 05, 2026(Q3-2026)|% Change Since:8.42%|Next Earnings Date:Mar 10, 2027

Earnings Call SentimentPositive

The call was broadly positive on third-quarter operating performance, with higher revenue, net income, adjusted EBITDA, mineral resources results, occupancy, multifamily revenue, liquidity, and trailing-twelve-month EBITDA. However, management repeatedly qualified the results because of unusual and timing-related items and acknowledged ongoing challenges involving net debt, cash-consuming businesses, cost structure, discretionary capital spending, and the need to convert assets into recurring cash flow. The number and significance of the reported operating improvements outweighed the disclosed challenges, but management's transformation plan remains in progress.

Positive Updates

Improved Third-Quarter Results

Third-quarter revenue, net income, and adjusted EBITDA were all ahead of last year, with comparable results year to date. Management reported steady to positive growth across the operating portfolio.

Negative Updates

Earnings Benefited From Unusual and Non-Recurring Items

Management said part of the improvement reflected timing and non-recurring items, including the second-quarter land sale contribution from the industrial joint venture with Dedeaux Properties, $3.9 million of crop insurance proceeds, and $2.6 million of bonus price adjustments related to last year's pistachio crop.

Company Guidance

Management said Building 1B remains under construction and is on track for completion early next year; Grapevine is one step closer to mapping and bringing its first phase to market, Centennial is expected to be before the Regional Planning Commission in the coming months and shortly after in front of the Los Angeles County Board of Supervisors, and the company is continuing to seek capital partners for the fully entitled Tejon Mountain Village. The plan is to clean up the balance sheet, convert land to recurring income, reduce controllable costs and discretionary CapEx, increase revenues, and deploy capital with disciplined returns, with reductions to the principal balance of the credit line to follow cash-generating activities; management said it will report more on these initiatives as efforts advance and expects to report fourth-quarter results early next year.

Tejon Ranch Company Financial Statement Overview

Summary

Strong balance sheet with low leverage (debt-to-equity ~0.20) supports financial stability, and TTM results show a rebound with improved profitability. However, profitability has been inconsistent over the cycle and free cash flow has been persistently negative (including TTM), which is a major constraint on the score.

Income Statement

62Positive

Balance Sheet

81Very Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	67.48M	49.59M	41.89M	44.74M	79.22M	55.61M
Gross Profit	12.91M	6.11M	1.89M	6.17M	23.43M	9.58M
EBITDA	17.98M	7.17M	8.55M	10.39M	27.83M	13.76M
Net Income	7.67M	75.00K	2.69M	3.27M	15.81M	5.35M
Balance Sheet
Total Assets	647.34M	630.47M	608.00M	577.52M	566.79M	546.04M
Cash, Cash Equivalents and Short-Term Investments	8.79M	24.89M	53.71M	64.46M	72.56M	47.18M
Total Debt	94.44M	93.94M	66.94M	47.94M	49.94M	52.63M
Total Liabilities	150.49M	139.91M	119.04M	94.43M	89.20M	89.53M
Stockholders Equity	481.50M	475.20M	473.59M	467.73M	462.23M	441.15M
Cash Flow
Free Cash Flow	-20.69M	-65.09M	-51.79M	-13.71M	-15.06M	-20.48M
Operating Cash Flow	17.50M	6.13M	14.31M	13.65M	8.53M	2.82M
Investing Cash Flow	-20.34M	-62.31M	-25.75M	-14.00M	-1.89M	-14.65M
Financing Cash Flow	1.37M	26.43M	18.79M	-6.87M	-4.42M	-6.09M

Tejon Ranch Company Technical Analysis

Technical Analysis SentimentPositive

Last Price17.65

Price Trends

50DMA16.40Positive

100DMA16.89Positive

200DMA17.77Negative

Market Momentum

MACD0.28Negative

RSI66.48Neutral

STOCH87.22Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRC, the sentiment is Positive. The current price of 17.65 is above the 20-day moving average (MA) of 16.61, above the 50-day MA of 16.40, and below the 200-day MA of 17.77, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 87.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRC.

Tejon Ranch Company Risk Analysis

Tejon Ranch Company disclosed 35 risk factors in its most recent earnings report. Tejon Ranch Company reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.We may be subject to shareholder activism or proxy contests, which could adversely affect our business and stock price.Q4, 2025

2.Concentrated ownership of our Common Stock creates a risk of sudden change in our share priceQ4, 2025

3.Only a limited market exists for our Common Stock, which could lead to price volatilityQ4, 2025

Tejon Ranch Company Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

TRC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEB	67Neutral	$3.61B	6.49	10.25%	0.24%	6.98%	40.66%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CRESY	63Neutral	$695.67M	5.72	13.52%	15.05%	11.27%	18.25%
TRC	54Neutral	$474.45M	62.06	1.61%	―	45.37%	155.95%
FIP	47Neutral	$453.82M	-0.86	-73.16%	2.74%	71.25%	-114.91%
GPUS	44Neutral	$35.93M	-0.06	-95.34%	―	28.38%	98.04%
FBYD	34Underperform	$806.37M	-61.46	-6.61%	―	181.39%	-194.74%

* Industrials Sector Average

Performance Comparison

TRC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TRC	Tejon Ranch	17.65	1.36	8.35%
CRESY	Cresud S.A.C.I.F. Y A.	9.13	-0.46	-4.83%
GPUS	Hyperscale Data, Inc.	0.18	-1.34	-88.37%
SEB	Seaboard Corporation	3749.49	-259.15	-6.46%
FBYD	Falcon's Beyond Global, Inc. Class A	6.33	-5.89	-48.20%
FIP	FTAI Infrastructure Incorporation	4.38	0.15	3.47%

Tejon Ranch Company Corporate Events

Business Operations and StrategyFinancial Disclosures

Tejon Ranch to Announce Q3 2026 Results Nov. 5

Neutral

Oct 29, 2026

On October 29, 2026, Tejon Ranch Co. announced plans to release its third quarter 2026 operating and financial results before the market opens on November 5, 2026. The company will accompany the earnings release with a conference call that same day a...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 06, 2026

Tejon Ranch Company AI Stock Analysis