Prologis (PLD) AI Stock Analysis

• Market Cap: $105.28B
• Dividend Yield: 3.58%
• Average Volume (3M): 4.02M
• Price to Earnings (P/E): 30.2
• Beta (1Y): 1.02
• Revenue Growth: 10.20%
• EPS Growth: 23.28%
• Country: US
• Employees: 2,703
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Industrial
• EPS (TTM): 0.61
• Shares Outstanding: 928,063,000
• 10 Day Avg. Volume: 2,620,499
• 30 Day Avg. Volume: 4,019,501
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 16.62
• Enterprise Value/Gross Profit: 22.08
• Enterprise Value/Ebitda: 18.32
• 1Y Price Target: $119.67
• Price Target Upside: 6.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 77 Outperform
• Price Target: $120.00 ▲(6.88% Upside)

Prologis scores well due to its strong financial performance and positive earnings call, which highlight robust operational metrics and strategic growth initiatives. Technical analysis and valuation present some cautionary signals, but the company's solid fundamentals and strategic positioning in the REIT - Industrial sector support a favorable outlook.

Positive Factors

Earnings

The FY FFO/share guidance was increased, beating estimates from analysts.

Financial Performance

Prologis, Inc. reported better than feared results with solid operating metrics, leading to expectations of a positive stock reaction.

Guidance and Strategy

The company raised guidance for acquisitions, development, and strategic capital, which is seen as a positive move.

Negative Factors

Rent Growth

Industrial rent growth remains tepid, and the relationship between rents and industrial REIT multiples suggests stocks could face pressure until demand recovers.

Target Price

Lowering the target price to $140 from $150 reflects uncertainty from unresolved trade policies.

Prologis Business Overview & Revenue Model

Company Description

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of December 31, 2020, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 984 million square feet (91 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfillment.

How the Company Makes Money

Prologis generates revenue primarily through leasing its industrial properties to a diverse clientele, including logistics companies, retailers, and manufacturers. The company earns rental income from long-term leases, which provide a stable cash flow. Additionally, Prologis benefits from property management fees and development profits when it builds new facilities or redevelops existing ones. Strategic partnerships with major e-commerce and logistics firms also enhance its market position and contribute to its earnings, as these companies often seek high-quality, strategically located distribution centers to optimize their supply chains. Furthermore, Prologis engages in joint ventures and co-investments, which allow it to share risks and returns while expanding its portfolio.

Prologis Financial Statement Overview

Summary

Prologis exhibits strong financial performance with significant revenue growth, profitability, and efficient cash flow management. However, the increasing debt and slight decline in gross profit margin are areas of concern.

Income Statement

Prologis demonstrates robust financial performance with significant revenue growth over the years. The TTM data shows a healthy gross profit margin of 67.7% and a net profit margin of 44.6%, indicating strong profitability. The revenue growth is evident with a 4.7% increase from the previous annual report. However, a slight decline in gross profit margin compared to the previous year suggests potential cost pressures.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.62, highlighting a moderate level of leverage suitable for a REIT. The equity ratio of 55.7% showcases strong equity backing relative to total assets. The return on equity (ROE) is consistent at 7.0%, indicating stable returns to shareholders. However, the increase in total debt over the past year is a point of concern and should be monitored.

Cash Flow

Prologis exhibits strong cash flow management with a positive free cash flow of $4.81 billion in the TTM, growing from $4.91 billion in the previous annual report. The operating cash flow to net income ratio of 1.34 indicates efficient cash generation relative to reported earnings. Nonetheless, the slight decrease in free cash flow from the prior period warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.38B	8.20B	8.02B	5.97B	4.76B	4.44B
Gross Profit	6.31B	6.14B	6.01B	4.46B	3.51B	3.27B
EBITDA	7.60B	7.53B	6.57B	5.80B	5.15B	3.61B
Net Income	3.74B	3.73B	3.06B	3.36B	2.94B	1.48B
Balance Sheet
Total Assets	95.99B	95.33B	93.02B	87.90B	58.49B	56.07B
Cash, Cash Equivalents and Short-Term Investments	671.12M	1.32B	530.39M	278.48M	556.12M	598.09M
Total Debt	32.26B	31.49B	29.60B	24.51B	18.16B	17.34B
Total Liabilities	37.92B	36.71B	35.20B	30.03B	20.74B	19.74B
Stockholders Equity	53.47B	53.95B	53.18B	53.24B	33.43B	31.97B
Cash Flow
Free Cash Flow	4.81B	4.91B	5.37B	3.58B	2.50B	1.69B
Operating Cash Flow	5.02B	4.91B	5.37B	4.13B	3.00B	2.94B
Investing Cash Flow	-3.56B	-3.10B	-6.42B	-4.50B	-1.99B	-3.07B
Financing Cash Flow	-1.28B	-999.96M	1.32B	115.79M	-1.01B	-372.16M

Prologis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 112.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLD, the sentiment is Positive. The current price of 112.28 is above the 20-day moving average (MA) of 106.98, above the 50-day MA of 107.11, and above the 200-day MA of 108.67, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 77.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLD.

Prologis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLD	77 Outperform	$105.28B	30.18	6.50%	3.58%	10.20%	23.28%
TRNO	75 Outperform	$5.75B	22.17	6.85%	3.52%	22.17%	40.80%
FR	74 Outperform	$6.91B	24.74	10.33%	3.26%	9.66%	-4.60%
REXR	74 Outperform	$9.34B	29.34	3.74%	4.31%	13.66%	11.34%
STAG	73 Outperform	$6.88B	28.56	6.89%	4.14%	8.56%	22.20%
LXP	69 Neutral	$2.56B	31.26	4.15%	6.15%	6.64%	210.89%
Sector *	62 Neutral	$6.93B	13.52	-0.57%	7.16%	3.62%	-22.63%

Prologis Corporate Events

Prologis Reports Q2 2025 Revenue Growth to $2.18B

On July 16, 2025, Prologis, Inc. announced its financial results for the second quarter of 2025, highlighting a total revenue increase to $2.18 billion from $2.01 billion in the same quarter of the previous year. Despite a decrease in net earnings attributable to common stockholders, the company reported growth in Core FFO and AFFO, reflecting strong operational performance and strategic capital revenues. The announcement underscores Prologis’ robust market positioning and its continued expansion in the logistics real estate sector, which is crucial for stakeholders monitoring the company’s financial health and strategic direction.

Prologis Reports Q2 2025 Financial Results

On July 16, 2025, Prologis, Inc. announced its financial results for the second quarter of 2025, highlighting a total revenue increase to $2.18 billion from $2.01 billion in the same period last year. The company’s net earnings attributable to common stockholders were $570 million, a decrease from $860 million in the previous year, reflecting changes in market conditions and operational adjustments. Prologis continues to show strong performance in its core business areas, with significant investments in development and strategic capital, positioning itself well for future growth.

Prologis CIO Joseph Ghazal to Step Down

On June 17, 2025, Prologis announced that its Chief Investment Officer, Joseph Ghazal, has decided to step down from his executive role effective July 1, 2025. Ghazal will continue with the company until July 10, 2026, to ensure a smooth transition, which may impact the company’s strategic investment operations during this period.

Prologis CIO Joseph Ghazal to Step Down

On June 17, 2025, Prologis announced that Joseph Ghazal, the Chief Investment Officer, will step down from his executive role effective July 1, 2025. Ghazal will remain with the company until July 10, 2026, to ensure a smooth transition, which may impact Prologis’s investment strategies and stakeholder relations during this period.

Prologis Enters $3 Billion Global Credit Agreement

On May 22, 2025, Prologis, L.P. and its affiliates entered into an Amended and Restated Global Senior Credit Agreement, known as the 2025 Global Facility, with various lenders and Bank of America, N.A. This agreement allows Prologis to obtain loans and issue letters of credit up to $3 billion, with the facility maturing in 2029 and options to extend. The agreement includes two tranches in U.S. Dollars and Euros, and its terms are influenced by Prologis’ public debt ratings. This strategic financial move is expected to enhance Prologis’ operational flexibility and strengthen its position in the logistics real estate market.

Prologis Secures $3 Billion Global Credit Facility

On May 22, 2025, Prologis, L.P. and its affiliates entered into an Amended and Restated Global Senior Credit Agreement with various lenders and Bank of America, N.A. as the Global Administrative Agent. This agreement, known as the 2025 Global Facility, allows the company to obtain loans and issue letters of credit up to $3 billion, with the possibility of increasing this by an additional $1 billion. The facility includes a U.S. Dollar Tranche and a Euro Tranche, and is set to mature on June 29, 2029, with options for two six-month extensions. The agreement includes customary financial covenants and guarantees, and its terms are influenced by the public debt ratings of the Operating Partnership.