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Lineage, Inc. (LINE)
NASDAQ:LINE
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Lineage, Inc.
(NASDAQ:LINE)
Rating:48Neutral
Price Target:―
Positive Factors
Market Position
Key positives include scale and market share benefits, external growth and continued consolidation opportunities, and long-term tailwinds from the growing fresh and frozen food segment.
Strategic Partnerships
The company announced a large acquisition and development agreement with Tyson Food, which is expected to add to AFFO in the future.
Negative Factors
Demand Challenges
Revenue growth fell 1.4% and SS NOI growth was well below forecasts, indicating continued challenges in the demand environment.
Operational Challenges
Operations were softer than expected in warehouse storage with pricing per occupied pallet declining more than anticipated.
Lineage, Inc. (LINE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.33B
Dividend Yield2.01%
Average Volume (3M)991.80K
Price to Earnings (P/E)―
Beta (1Y)0.22
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees26,000
SectorReal Estate
Sector Strength63
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.01
Shares Outstanding228,590,160
10 Day Avg. Volume817,275
30 Day Avg. Volume991,798
Financial Highlights & Ratios
PEG Ratio-16.22
Price to Book (P/B)1.17
Price to Sales (P/S)0.00
P/FCF Ratio238.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$58.57Price Target Upside29.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Lineage, Inc. Business Overview & Revenue Model
Company DescriptionLineage, Inc. engages in the provision of temperature-controlled warehouse real estate investment trust (REIT). It operates through the Global Warehousing and Global Integrated Solutions segments. The Global Warehousing segment composes of industrial real estate properties to provide temperature-controlled warehousing services to its customers. The Global Integrated Solutions segment consists of specialized cold-chain services. The company was founded in 2008 and is headquartered in Novi, MI.
How the Company Makes MoneyLineage, Inc. makes money primarily through its comprehensive suite of cold storage and logistics services. The company's revenue streams include fees for warehousing services, which involve storing perishable goods at controlled temperatures to maintain product integrity. Additionally, Lineage earns revenue from transportation services, where it offers refrigerated shipping solutions to move goods between locations. The company also generates income by providing value-added services such as inventory management, blast freezing, and cross-docking. Strategic partnerships with major food producers and distributors, as well as investments in technology to optimize logistics efficiency, further enhance its revenue potential.
Lineage, Inc. Financial Statement Overview
Summary
Lineage, Inc. displays stable revenue but struggles with profitability and high leverage. The balance sheet reflects significant debt, and cash flow management appears volatile, indicating potential liquidity risks.Income Statement
Lineage, Inc. has demonstrated stable revenue over the past year with slight fluctuations. Despite a consistent gross profit margin, the company is facing challenges with profitability, as indicated by the negative net income and EBIT margins. Revenue growth is stagnant, and the company struggles to convert revenue into profit, highlighting potential operational inefficiencies.45
Neutral
Balance Sheet
The company has a relatively high debt-to-equity ratio, indicating significant leverage, which could pose risks if interest rates rise. However, the equity ratio remains stable, showcasing a solid asset base. Return on equity is negative due to the net losses, suggesting challenges in generating returns for shareholders.55
Neutral
Cash Flow
Lineage, Inc. manages to maintain a positive operating cash flow, although free cash flow has shown volatility. The operating cash flow to net income ratio is favorable, but the free cash flow growth rate is inconsistent. This indicates potential issues with capital expenditures and cash management.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2018 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.30B | 5.34B | 5.34B | 4.93B | 3.70B | 517.82M | Gross Profit |
| 1.41B | 1.76B | 1.75B | 1.46B | 1.13B | 517.82M | EBIT |
| 464.00M | 361.00M | -398.00M | 297.30M | 87.70M | 224.54M | EBITDA |
| 630.00M | 575.00M | 452.00M | 1.06B | 841.00M | 386.30M | Net Income Common Stockholders |
| -630.00M | -664.00M | -77.00M | -62.70M | -153.30M | -140.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 173.00M | 173.00M | 68.00M | 170.60M | 209.10M | 89.06M | Total Assets |
| 18.66B | 18.66B | 18.87B | 18.56B | 16.42B | 2.75B | Total Debt |
| 6.88B | 6.88B | 11.05B | 10.69B | 9.60B | 1.03B | Net Debt |
| 6.71B | 6.71B | 10.98B | 10.52B | 9.40B | 1.02B | Total Liabilities |
| 8.97B | 8.97B | 12.85B | 12.45B | 11.14B | 1.25B | Stockholders Equity |
| 8.64B | 8.64B | 5.05B | 5.17B | 4.34B | 1.50B |
| Cash Flow | Free Cash Flow | ||||
| 42.20M | 12.00M | 30.00M | -312.00M | -359.20M | 265.06M | Operating Cash Flow |
| 736.70M | 703.00M | 795.10M | 500.90M | 329.90M | 268.30M | Investing Cash Flow |
| -668.80M | -919.00M | -1.07B | -2.37B | -3.41B | -689.09M | Financing Cash Flow |
| 219.50M | 320.00M | 136.20M | 1.84B | 3.03B | 426.21M |
Lineage, Inc. Technical Analysis
Negative
45.21
Price Trends
52.73
Negative
55.12
Negative
63.81
Negative
Market Momentum
-1.94
Negative
36.97
Neutral
15.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LINE, the sentiment is Negative. The current price of 45.21 is below the 20-day moving average (MA) of 47.10, below the 50-day MA of 52.73, and below the 200-day MA of 63.81, indicating a bearish trend. The MACD of -1.94 indicates Negative momentum. The RSI at 36.97 is Neutral, neither overbought nor oversold. The STOCH value of 15.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LINE.
Lineage, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.49B | 25.73 | 7.15% | 4.35% | 8.81% | 33.30% | |
72 Outperform | $6.57B | 23.89 | 10.18% | 3.23% | 9.18% | -7.05% | |
69 Neutral | $8.21B | 28.17 | 3.35% | 4.85% | 18.02% | 12.12% | |
68 Neutral | $2.43B | 42.05 | 2.98% | 6.44% | 5.68% | 358.78% | |
68 Neutral | $5.70B | 27.86 | 5.33% | 3.48% | 22.17% | 4.34% | |
60 Neutral | $2.76B | 10.59 | 0.51% | 8507.90% | 5.51% | -19.44% | |
48 Neutral | $10.33B | ― | -9.72% | 2.01% | ― | ― |
* Real Estate Sector Average
Performance Comparison
LINE
Lineage, Inc.
45.21
-35.80
-44.19%
STAG
Stag Industrial
34.07
0.75
2.25%
TRNO
Terreno Realty
55.15
0.83
1.53%
FR
First Industrial Realty
48.16
3.55
7.96%
LXP
LXP Industrial Trust
8.23
0.32
4.05%
REXR
Rexford Industrial Realty
34.67
-7.33
-17.45%
Lineage, Inc. Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -19.97%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strategic advancements and financial challenges. While significant new business agreements and technological progress were made, the company faced revenue and NOI declines. The macroeconomic uncertainty due to tariffs is a notable concern impacting customer behavior. Despite these challenges, strategic partnerships and improvements in technology position Lineage for future growth.Q1-2025 Updates
Positive Updates
Landmark Agreements with Tyson Foods
Lineage announced agreements with Tyson Foods, deploying approximately $1 billion in capital for acquisitions and development, expected to generate over $100 million in annual EBITDA.
Strong New Business Wins
The company achieved record new business wins, with new business having more than 42% volume guarantees.
Progress on LinOS Technology
LinOS, the proprietary warehouse execution system, is exceeding expectations, showing double-digit productivity improvements in pilot facilities.
AFFO Growth
AFFO for the quarter was up 48% to $219 million, with a 6% increase in AFFO per share.
Continued Global Expansion
Lineage completed acquisitions and expansions in key markets, including the acquisition of Bellingham Cold Storage and expansions in Denmark and the Netherlands.
Negative Updates
Revenue and EBITDA Decline
Total revenue was down 3%, with adjusted EBITDA decreasing by 7%.
Same-Store Warehouse NOI Decline
Same-store warehouse NOI decreased by 7.9%.
Impact of Tariff Uncertainty
The macroeconomic uncertainty due to U.S. tariff announcements has created hesitancy among customers, impacting near-term activity.
Lower Revenue per Throughput and Occupied Pallet
Revenue per throughput and occupied pallet was impacted by lower rates and customers resetting volume guarantees at lower levels.
Company Guidance
During the Lineage First Quarter 2025 Earnings Conference Call, the company maintained its guidance for the year, expecting adjusted EBITDA to range between $1,350 to $1,400 million and AFFO per share to be between $3.40 to $3.60. The call highlighted a significant agreement with Tyson Foods, involving a $1 billion capital deployment to acquire and develop cold storage facilities expected to generate over $100 million in annual EBITDA. Despite a 3% decrease in total revenue and a 7% decline in adjusted EBITDA for the quarter, Lineage reported a 6% growth in AFFO per share. The company attributed the revenue challenges to lower revenue per throughput and occupied pallet due to new business wins at lower rates and customers adjusting volume guarantees downward. Lineage plans to combat these challenges by leveraging its global scale and expertise, continuing cost control measures, and integrating its proprietary LinOS technology to enhance productivity and maintain competitive advantages.Lineage, Inc. Corporate Events
Business Operations and Strategy
Lineage Inc. Highlights Growth in Cold Storage Sector
Positive
May 7, 2025
On May 7, 2025, Lineage Inc. released an investor presentation highlighting its position as a global leader in the cold storage market, a sector noted for its resilience and growth potential. The presentation emphasized the company’s strategic advantages, including its superior same warehouse growth, operational excellence enabled by technology, and significant opportunities for global expansion through greenfields, expansions, and acquisitions.
M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Lineage, Inc. Reports Q1 2025 Financial Results
Neutral
Apr 30, 2025
On April 30, 2025, Lineage, Inc. announced its first-quarter 2025 financial results, highlighting a 2.7% decrease in total revenue to $1,292 million and a breakeven GAAP net income. Despite a 7% decrease in adjusted EBITDA, the company reported a 48% increase in AFFO to $219 million. Lineage also declared a quarterly dividend of $0.5275 per share. Additionally, Lineage announced landmark agreements with Tyson Foods, including acquiring four cold storage warehouses for $247 million and planning to build two automated warehouses. These agreements are expected to deploy approximately $1 billion of capital, strengthening Lineage’s market position and customer relationship with Tyson Foods.
Executive/Board Changes
Lineage, Inc. Updates Executive Compensation Agreements
Neutral
Apr 21, 2025
On April 17, 2025, Lineage, Inc. announced that its Compensation Committee approved amended employment agreements for CEO Greg Lehmkuhl and CFO Rob Crisci, as well as an updated Executive Severance Plan. These changes allow for annual bonuses to be awarded in cash and/or performance vesting equity-based awards, rather than solely in cash. The amendments also detail how bonuses will be calculated and paid in the event of a qualifying termination, with the value of equity-based awards determined by the company’s stock price at relevant dates.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.