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Tejon Ranch Company
(NYSE:TRC)
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Rating:53Neutral
Price Target:
$16.50
▼(-6.36% Downside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by persistently negative free cash flow and weak technicals (downtrend with negative momentum), with valuation also a significant headwind given the very high P/E. These are partially offset by a conservatively levered balance sheet and an earnings call that pointed to improving operating performance, liquidity strength, and identifiable monetization efforts, though execution and project-timeline risks remain meaningful.
Positive Factors
Balance Sheet Strength
A low debt-to-equity (~0.20) and a growing equity base provide durable financial flexibility to fund multi-quarter development timelines, pursue JV structures, and withstand cyclical real estate swings without immediate liquidity stress, supporting longer-term project execution.
Negative Factors
Persistent Negative Free Cash Flow
Sustained negative FCF (~-$25.7M TTM) reflects ongoing capex and working-capital absorption, limiting internal funding for large projects and shareholder returns. Over a multi-month horizon this raises reliance on revolver or external capital, constraining strategic optionality and increasing financing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A low debt-to-equity (~0.20) and a growing equity base provide durable financial flexibility to fund multi-quarter development timelines, pursue JV structures, and withstand cyclical real estate swings without immediate liquidity stress, supporting longer-term project execution.
Read all positive factors
Tejon Ranch Company (TRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$457.18M
Dividend YieldN/A
Average Volume (3M)110.07K
Price to Earnings (P/E)270.0
Beta (1Y)0.48
Revenue Growth19.20%
EPS Growth-21.40%
CountryUS
Employees65
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.23
Shares Outstanding27,004,234
10 Day Avg. Volume103,060
30 Day Avg. Volume110,070
Financial Highlights & Ratios
PEG Ratio-57.94
Price to Book (P/B)0.89
Price to Sales (P/S)8.57
P/FCF Ratio-6.53
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.11
Revenue Forecast (FY)$49.38M
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 Rea...
How the Company Makes Money
TRC primarily makes money by monetizing its land and related rights through a mix of recurring operations and real estate transactions. Key revenue streams include: (1) Land and real estate sales and development monetization: TRC can generate reve...
Tejon Ranch Company Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented a number of clear operational and financial improvements: strong adjusted EBITDA and trailing EBITDA growth, return to net income, cost reductions, liquidity and low leverage, progress on a meaningful industrial JV, improved leasing and JV earnings, AI-driven efficiency gains, and active steps to monetize water assets. Offsetting these positives are persistent investor concern about the low share price, reliance on some non-recurring land monetization for quarterly results, ongoing low returns from farming/ranch activities once fixed water obligations are considered, and significant uncertainty and litigation risk surrounding large-scale Centennial development. Management emphasized a strategic review, discipline on capital allocation, and steps to drive shareholder value, but key long-lead projects and legacy assets create near-term uncertainty.Positive Updates
Strong Adjusted EBITDA Growth
Adjusted EBITDA grew approximately 47% year-over-year for the quarter; trailing 12-month adjusted EBITDA was $29.8 million, up 21% from a year ago.
Negative Updates
Persistent Stock Price Weakness and Shareholder Frustration
Stock trading at its lowest price since IPO ~40 years ago; investors expressed strong concern about perceived destruction of shareholder value, executive/board compensation, and historical capital allocation decisions.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Adjusted EBITDA Growth
Adjusted EBITDA grew approximately 47% year-over-year for the quarter; trailing 12-month adjusted EBITDA was $29.8 million, up 21% from a year ago.
Read all positive updates
Company Guidance
Management's forward guidance emphasized near‑term monetization and operational improvement: they expect early‑2027 delivery of the 510,000‑sq‑ft Class A industrial JV (Tejon contributed land with a $9.9M fair‑market value, recognized $6.9M revenue and $2.0M profit this quarter with $3.0M deferred), will pursue opportunistic water sales and infrastructure to monetize excess water, and are driving Centennial re‑entitlement with a recirculated partial DEIR and Planning Commission/Board hearings targeted before year‑end; financial targets include driving earnings to peer‑comparable levels and returning those earnings to shareholders while sustaining recent momentum (Q2 adjusted EBITDA +47% YoY, net income $2.6M or $0.10/share vs. a $1.7M loss YoY, trailing 12‑month adjusted EBITDA $29.8M, up 21% YoY, joint‑venture equity earnings +21% to $3.1M), maintaining liquidity (~$79M) and a 16.3% debt‑to‑capital ratio, increasing Terra Vista leasing (now >80%), and continuing expense discipline (core corporate expenses down ~18% YTD; excluding land/water, overall expenses down ~18% YTD, segments down ~8%).Tejon Ranch Company Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 56.84M | 49.59M | 41.89M | 44.74M | 79.22M | 55.61M |
| Gross Profit | 9.14M | 6.11M | 1.89M | 6.17M | 23.43M | 9.58M |
| EBITDA | 17.80M | 7.17M | 8.55M | 10.39M | 27.83M | 13.76M |
| Net Income | 6.04M | 75.00K | 2.69M | 3.27M | 15.81M | 5.35M |
Balance Sheet | ||||||
| Total Assets | 639.54M | 630.47M | 608.00M | 577.52M | 566.79M | 546.04M |
| Cash, Cash Equivalents and Short-Term Investments | 15.06M | 24.89M | 53.71M | 64.46M | 72.56M | 47.18M |
| Total Debt | 95.94M | 93.94M | 66.94M | 47.94M | 49.94M | 52.63M |
| Total Liabilities | 146.63M | 139.91M | 119.04M | 94.43M | 89.20M | 89.53M |
| Stockholders Equity | 477.56M | 475.20M | 473.59M | 467.73M | 462.23M | 441.15M |
Cash Flow | ||||||
| Free Cash Flow | -25.75M | -65.09M | -51.79M | -13.71M | -15.06M | -20.48M |
| Operating Cash Flow | 12.47M | 6.13M | 14.31M | 13.65M | 8.53M | 2.82M |
| Investing Cash Flow | -23.97M | -62.31M | -25.75M | -14.00M | -1.89M | -14.65M |
| Financing Cash Flow | 12.87M | 26.43M | 18.79M | -6.87M | -4.42M | -6.09M |
Tejon Ranch Company Technical Analysis
Negative
17.62
Price Trends
18.33
Negative
18.85
Negative
17.66
Negative
Market Momentum
-0.53
Positive
28.85
Positive
9.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRC, the sentiment is Negative. The current price of 17.62 is above the 20-day moving average (MA) of 17.50, below the 50-day MA of 18.33, and below the 200-day MA of 17.66, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 28.85 is Positive, neither overbought nor oversold. The STOCH value of 9.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks
Tejon Ranch Company Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $768.71M | 5.62 | 16.63% | 5.22% | -10.68% | 46.63% | |
66 Neutral | $127.65M | -1.80 | -27.50% | ― | -69.74% | 63.94% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.37B | 4.83 | 17.62% | 9.35% | -3.89% | 105.42% | |
53 Neutral | $457.18M | 270.02 | 0.36% | ― | 19.20% | -21.40% | |
49 Neutral | $440.75M | -0.83 | -41.74% | 2.84% | 72.20% | -267.01% | |
47 Neutral | $758.38M | -2.65 | -46.27% | 2.49% | 7.52% | -1.67% |
* Industrials Sector Average
TRC
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Tejon Ranch Company Corporate Events
Business Operations and StrategyFinancial Disclosures
Tejon Ranch to Announce Second Quarter 2026 Results
Neutral
Jul 30, 2026
Tejon Ranch Co. announced on July 30, 2026 that it will release its second quarter 2026 operating and financial results before the market opens on August 6, 2026. The company will host a conference call that same day at 5:00 p.m. Eastern Time, led...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Tejon Ranch Shareholders Approve Governance Changes and Directors
Positive
May 15, 2026
At its 2026 Annual Meeting of Shareholders held on May 13, 2026, Tejon Ranch Co. reported that a quorum was present and that all nine board nominees were elected to serve until the 2027 annual meeting, with shareholders also approving on an adviso...
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.