Lineage, Inc. (LINE) AI Stock Analysis

Compare

187 Followers

Top Page

Lineage, Inc.

(NASDAQ:LINE)

Rating:48Neutral

Price Target:―

Lineage, Inc. faces significant financial challenges with high debt and profitability issues, which heavily impact its stock score. Technical analysis indicates bearish momentum, and a negative P/E ratio further complicates valuation. Strategic partnerships and technological advancements from the earnings call offer some optimism, but the current financial risks outweigh these factors.

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 Strength69

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

$58.57

Price 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. 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. 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

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Neutral

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2018
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price45.21

Price Trends

50DMA

52.47

Negative

100DMA

54.99

Negative

200DMA

63.62

Negative

Market Momentum

MACD

-1.91

Negative

RSI

36.94

Neutral

STOCH

10.84

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 46.57, below the 50-day MA of 52.47, and below the 200-day MA of 63.62, indicating a bearish trend. The MACD of -1.91 indicates Negative momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of 10.84 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
STAG	78 Outperform	$6.49B	25.73	7.15%	4.35%	8.81%	33.30%
FR	72 Outperform	$6.69B	24.32	10.18%	3.23%	9.18%	-7.05%
REXR	69 Neutral	$8.21B	28.17	3.35%	4.85%	18.02%	12.12%
LXP	68 Neutral	$2.43B	42.05	2.98%	6.44%	5.68%	358.78%
TRNO	68 Neutral	$5.70B	27.86	5.33%	3.48%	22.17%	4.34%
Sector *	60 Neutral	$2.76B	10.59	0.51%	8507.90%	5.51%	-19.44%
LINE	48 Neutral	$10.33B	―	-9.72%	2.01%	―	―

* Real Estate Sector Average

Performance Comparison

LINE

Lineage, Inc.

45.20

-35.81

-44.20%

STAG

Stag Industrial

34.92

1.60

4.80%

TRNO

Terreno Realty

56.26

1.94

3.57%

First Industrial Realty

49.03

4.42

9.91%

LXP

LXP Industrial Trust

8.49

0.58

7.33%

REXR

Rexford Industrial Realty

35.41

-6.59

-15.69%

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.