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Lineage, Inc. (LINE)
NASDAQ:LINE
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Lineage, Inc.
(NASDAQ:LINE)
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Rating:54Neutral
Price Target:
$42.00
▲(3.73% Upside)
Lineage, Inc.'s overall stock score is primarily impacted by its financial performance challenges, particularly in profitability and free cash flow generation. The technical analysis suggests potential stabilization, but the valuation is hindered by a negative P/E ratio. The earnings call provided a balanced view with both achievements and challenges, contributing to a moderate score.
Positive Factors
Strategic Partnerships
Strategic partnerships provide Lineage with upfront payments, milestone payments, and royalties, crucial for sustaining R&D and offsetting high costs in biotech.
Productivity Improvements
LinOS's productivity gains enhance operational efficiency, potentially reducing costs and improving service delivery, supporting long-term growth.
Investment-Grade Bond Offering
The successful bond offering enhances financial flexibility, providing capital for growth initiatives and strengthening the balance sheet.
Negative Factors
Profitability Challenges
Negative profit margins indicate ongoing operational challenges, which can hinder reinvestment in R&D and limit competitive positioning.
Reduced Financial Guidance
Lowered financial guidance reflects market challenges, potentially impacting investor confidence and limiting capital for future projects.
Free Cash Flow Constraints
Limited free cash flow restricts the company's ability to invest in new projects or buffer against financial downturns, affecting long-term growth.
Lineage, Inc. (LINE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.49B
Dividend Yield4.85%
Average Volume (3M)1.24M
Price to Earnings (P/E)―
Beta (1Y)0.23
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees26,000
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)-0.03
Shares Outstanding228,767,620
10 Day Avg. Volume1,204,885
30 Day Avg. Volume1,241,971
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.97
Enterprise Value/Revenue3.51
Enterprise Value/Gross Profit11.97
Enterprise Value/Ebitda34.48
Forecast
1Y Price Target
$49.50Price Target Upside22.25% Upside
Rating ConsensusHold
Number of Analyst Covering16
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 generates revenue primarily through the commercialization of its proprietary cell-based therapies and related products. The company establishes partnerships and collaborations with larger pharmaceutical and biotechnology firms, which often involve licensing agreements for its technologies and products. These partnerships typically provide upfront payments, milestone payments based on the achievement of specific development goals, and royalties on future sales. Additionally, Lineage may receive funding from grants and research contracts aimed at advancing its scientific initiatives. The company’s ability to attract strategic partnerships and secure funding is critical to its revenue model, as it helps to offset the high costs associated with research and development in the biotech industry.
Lineage, Inc. Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were notable achievements in terms of productivity improvements, bond offerings, and growth in specific segments, the company faced significant challenges with reduced guidance, declining same warehouse NOI, and adjusted EBITDA. The highlights and lowlights appear to be balanced.Q2-2025 Updates
Positive Updates
Growth in Global Integrated Solutions
The Global Integrated Solutions segment saw an 8% year-over-year NOI growth, driven by the U.S. transportation and direct-to-consumer businesses, with strong momentum expected to continue in the second half of 2025.
LinOS Pilot Program Success
The rollout of LinOS has shown double-digit productivity improvements. It is set to expand from 6 to 10 sites by year-end, with a broader rollout planned for 2026.
Inaugural Bond Offering
Lineage Logistics completed its inaugural $500 million investment-grade bond offering, which has been well-received and traded tighter since the offering.
M&A and Development Pipeline Execution
The company executed on its M&A and development pipeline, deploying $535 million in growth capital, including agreements with Tyson Foods and three smaller acquisitions.
Negative Updates
Reduction in Annual Guidance
Annual AFFO per share guidance was reduced to $3.20 to $3.40 from the previous range of $3.40 to $3.60, due to muted seasonal inventory levels.
Decrease in Adjusted EBITDA
Adjusted EBITDA decreased by 2%, reflecting challenging market dynamics, including higher food prices and interest rates.
Decline in Same Warehouse NOI
Same warehouse NOI was down 6% year-over-year, against elevated inventory levels experienced last year.
Lower Full Year 2025 Adjusted EBITDA Guidance
Full year adjusted EBITDA guidance was revised to $1.29 billion to $1.34 billion, down from the previous range of $1.35 billion to $1.4 billion.
Company Guidance
During the Lineage Logistics Second Quarter 2025 Earnings Call, the company provided updated guidance, reflecting a challenging market environment. Lineage reported an AFFO per share growth of over 8%, but total revenue increased modestly by 1%, and adjusted EBITDA decreased by 2% due to factors such as high food prices and interest rates impacting market dynamics. The company revised its annual AFFO per share guidance to $3.20-$3.40, down from $3.40-$3.60, and adjusted its full-year EBITDA guidance to $1.29 billion-$1.34 billion from a previous range of $1.35 billion-$1.4 billion. For the third quarter, Lineage expects AFFO per share to be between $0.75 and $0.79, with adjusted EBITDA ranging from $326 million to $336 million. Despite these challenges, Lineage highlighted its strategic initiatives, including the rollout of LinOS, which showed double-digit productivity improvements, and its first $500 million investment-grade bond offering.Lineage, Inc. Financial Statement Overview
Summary
Lineage, Inc. shows stable revenue and operational cash flow but struggles with profitability and free cash flow generation. The balance sheet is moderately leveraged with a reasonable equity position, yet operational inefficiencies and negative net profit margins are concerning.Income Statement
Lineage, Inc. has shown stable revenue over the past year, with a slight decline from the previous year. The gross profit margin is healthy at approximately 33%, but the net profit margin is negative due to significant net losses. The EBIT and EBITDA margins indicate operational challenges, with EBIT being particularly low, suggesting high operating expenses or other costs impacting profitability.55
Neutral
Balance Sheet
The company's balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to financing. However, the return on equity is negative due to net losses, which is a concern for investors. The equity ratio is around 46%, showing a reasonable level of equity financing relative to total assets.60
Neutral
Cash Flow
Lineage, Inc. has a positive operating cash flow, which is a good sign of operational efficiency. However, free cash flow is minimal, indicating limited cash available after capital expenditures. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio is low, reflecting challenges in generating free cash.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2018 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.32B | 5.34B | 5.34B | 4.93B | 3.70B | 517.82M |
| Gross Profit | 1.56B | 1.76B | 1.75B | 1.46B | 1.13B | 517.82M |
| EBITDA | 541.00M | 547.00M | 452.00M | 1.06B | 841.00M | 386.30M |
| Net Income | -562.00M | -664.00M | -77.00M | -62.70M | -153.30M | -140.67M |
Balance Sheet | ||||||
| Total Assets | 19.44B | 18.66B | 18.87B | 18.56B | 16.42B | 2.75B |
| Cash, Cash Equivalents and Short-Term Investments | 81.00M | 173.00M | 68.00M | 170.60M | 209.10M | 89.06M |
| Total Debt | 7.68B | 6.88B | 11.05B | 10.69B | 9.60B | 1.03B |
| Total Liabilities | 9.78B | 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 | 73.00M | 12.00M | 30.00M | -312.00M | -359.20M | 265.06M |
| Operating Cash Flow | 582.00M | 703.00M | 795.10M | 500.90M | 329.90M | 268.30M |
| Investing Cash Flow | -659.00M | -919.00M | -1.07B | -2.37B | -3.41B | -689.09M |
| Financing Cash Flow | 197.00M | 320.00M | 136.20M | 1.84B | 3.03B | 426.21M |
Lineage, Inc. Technical Analysis
Negative
40.49
Price Trends
41.79
Negative
43.33
Negative
50.17
Negative
Market Momentum
0.01
Negative
44.78
Neutral
47.63
Neutral
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 40.49 is below the 20-day moving average (MA) of 41.27, below the 50-day MA of 41.79, and below the 200-day MA of 50.17, indicating a bearish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 47.63 is Neutral, 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 8.85B | 35.79 | 6.94% | 3.33% | 11.22% | -3.16% | |
76 Outperform | 5.98B | 23.05 | 6.45% | 3.34% | 22.17% | 40.80% | |
76 Outperform | 10.01B | 31.45 | 3.59% | 3.99% | 13.66% | 11.34% | |
74 Outperform | 7.06B | 25.29 | 10.25% | 3.11% | 9.66% | -4.60% | |
73 Outperform | 6.74B | 28.00 | 6.80% | 4.19% | 8.56% | 22.20% | |
54 Neutral | $9.49B | ― | -8.75% | 4.85% | ― | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
Performance Comparison
LINE
Lineage, Inc.
40.49
-38.82
-48.95%
EGP
Eastgroup Properties
168.42
-17.16
-9.25%
STAG
Stag Industrial
35.50
-2.84
-7.41%
TRNO
Terreno Realty
58.61
-8.71
-12.94%
FR
First Industrial Realty
52.34
-2.57
-4.68%
REXR
Rexford Industrial Realty
42.52
-7.51
-15.01%
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.