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Tejon Ranch Company (TRC)
NYSE:TRC

Tejon Ranch Company (TRC) AI Stock Analysis

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Tejon Ranch Company

(NYSE:TRC)

51Neutral
Tejon Ranch Company faces challenges with declining profitability and inconsistent cash flow, reflected in the financial performance score. While technical indicators show some stability, the high P/E ratio suggests overvaluation. The appointment of a new CEO with relevant experience is a positive strategic move, indicating potential for future growth.

Tejon Ranch Company (TRC) vs. S&P 500 (SPY)

Tejon Ranch Company Business Overview & Revenue Model

Company DescriptionTejon Ranch Co., together with its subsidiaries, operates as a diversified real estate development and agribusiness company. It operates through five segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations. The Commercial/Industrial Real Estate Development segment engages in the planning and permitting of land for development; construction of infrastructure projects, pre-leased buildings, and buildings to be leased or sold; and sale of land to third parties for their own development. It is also involved in the activities related to communications leases, and landscape maintenance. This segment leases land to two auto service stations with convenience stores, 13 fast-food operations, a motel, an antique shop, and a post office; various microwave repeater locations, radio and cellular transmitter sites, and fiber optic cable routes; and 32 acres of land for an electric power plant. The Resort/Residential Real Estate Development segment engages in land entitlement, planning, pre-construction engineering, stewardship, and conservation activities. The Mineral Resources segment includes oil and gas royalties, rock and aggregate royalties, and royalties from a cement operation leased to National Cement Company of California, Inc.; and the management of water assets and infrastructure projects. The Farming segment farms permanent crops, such as wine grapes in 1,036 acres, almonds in 2,262 acres, and pistachios in 1,053 acres. It also manages the farming of alfalfa and forage mix on 626 acres in the Antelope Valley; and leases 720 acres of land for growing vegetables, as well as almonds. The Ranch Operations segment provides game management and ancillary land services comprising grazing leases and filming, as well as various guided hunts. Tejon Ranch Co. was founded in 1843 and is based in Lebec, California.
How the Company Makes MoneyTejon Ranch Company generates revenue primarily through its real estate development projects and agribusiness operations. The company monetizes its extensive land holdings by developing and selling residential, commercial, and industrial properties, often in master-planned communities. Additionally, TRC earns income from leasing land for various uses such as agriculture, energy production, and commercial activities. The company also benefits from its agricultural operations which involve the cultivation of crops and livestock management. Partnerships with developers and other businesses for joint ventures in real estate or resource utilization further contribute to the company's earnings.

Tejon Ranch Company Financial Statement Overview

Summary
Tejon Ranch Company's financial performance shows challenges in revenue and profitability, with declining income and negative margins. Despite a strong balance sheet supported by equity, the negative return on equity and inconsistent cash flow management highlight areas needing improvement.
Income Statement
35
Negative
The income statement reflects declining revenue with a negative growth trend from 2023 to 2024. Gross profit margin is consistent at 100%, but the company struggles with profitability, evidenced by negative EBIT and net income margins in 2024. Revenue growth has been inconsistent, with a significant drop in 2024 compared to previous years.
Balance Sheet
60
Neutral
The balance sheet shows a strong equity position with an equity ratio of about 77.9% in 2024. The debt-to-equity ratio is manageable at approximately 0.14, indicating low leverage. However, the declining net income impacts the return on equity, which is negative in 2024, highlighting potential risks in profitability.
Cash Flow
45
Neutral
Cash flow analysis indicates positive operating cash flow in 2024, but free cash flow has only recently turned positive. The operating cash flow to net income ratio indicates poor conversion of net income to cash, and the free cash flow growth rate is volatile, reflecting inconsistent cash management.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
41.89M44.74M79.22M55.61M37.83M
Gross Profit
1.89M6.17M23.43M9.58M2.68M
EBIT
-9.20M-3.70M13.73M-317.00K-6.75M
EBITDA
-9.20M969.00K17.72M4.33M-1.70M
Net Income Common Stockholders
2.69M3.27M15.81M5.35M-747.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
53.71M64.46M72.56M47.18M58.09M
Total Assets
608.00M577.52M566.79M546.04M536.35M
Total Debt
66.94M47.94M49.94M52.63M56.88M
Net Debt
27.68M16.04M10.82M16.43M1.56M
Total Liabilities
119.04M94.43M89.20M89.53M91.02M
Stockholders Equity
473.59M467.73M462.23M441.15M429.96M
Cash FlowFree Cash Flow
14.31M-13.71M-15.06M-20.48M-10.35M
Operating Cash Flow
14.31M13.65M8.53M2.82M15.48M
Investing Cash Flow
-25.75M-14.00M-1.89M-14.65M19.78M
Financing Cash Flow
18.79M-6.87M-4.42M-6.09M-7.04M

Tejon Ranch Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.76
Price Trends
50DMA
15.92
Negative
100DMA
15.89
Negative
200DMA
16.61
Negative
Market Momentum
MACD
0.04
Positive
RSI
49.83
Neutral
STOCH
30.28
Neutral
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 15.76 is below the 20-day moving average (MA) of 16.00, below the 50-day MA of 15.92, and below the 200-day MA of 16.61, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 30.28 is Neutral, 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 29 risk factors in its most recent earnings report. Tejon Ranch Company reported the most risks in the “Production” 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FPFPI
72
Outperform
$513.47M10.7911.91%2.21%1.32%108.94%
71
Outperform
$5.97B30.215.59%3.31%18.24%6.95%
CTCTO
68
Neutral
$616.47M36.87-0.37%8.04%14.11%-667.02%
62
Neutral
$8.08B13.633.82%3.13%3.58%-14.35%
61
Neutral
$306.95M40.964.34%1.76%2.39%
58
Neutral
$380.30M1.89%5.33%-5.73%-5.33%
TRTRC
51
Neutral
$423.44M157.440.57%-6.38%-17.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TRC
Tejon Ranch Company
15.76
0.64
4.23%
CTO
CTO Realty Growth
18.90
3.44
22.25%
LMNR
Limoneira Co
17.01
-2.26
-11.73%
TRNO
Terreno Realty
57.91
-3.54
-5.76%
LAND
Gladstone Land
10.51
-1.91
-15.38%
FPI
Farmland
10.88
1.40
14.77%

Tejon Ranch Company Corporate Events

Executive/Board ChangesShareholder Meetings
Tejon Ranch Co. Announces Board Size Reduction
Neutral
Mar 17, 2025

On March 12, 2025, Tejon Ranch Co. announced that Director Rhea Frawn Morgan will not seek reelection at the 2025 annual meeting, concluding her term. Subsequently, the Board decided to reduce its size from eleven to ten members effective immediately after the meeting. Morgan, who joined the board in January 2021, contributed significantly through her roles on various committees and her expertise in community development and private equity.

Executive/Board ChangesBusiness Operations and Strategy
Tejon Ranch Company Appoints Matthew Walker as New CEO
Positive
Feb 11, 2025

On February 11, 2025, Tejon Ranch Company announced the appointment of Matthew Walker as the new President and CEO, effective March 31, 2025, succeeding Gregory S. Bielli who is retiring. Walker, with a 24-year career in real estate at Lowe Enterprises, brings extensive experience in resort and residential development, which will be crucial for Tejon Ranch’s future growth. The company plans to build on the success of its Tejon Ranch Commerce Center and its master planned communities, aiming to provide economic development opportunities and shareholder value.

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.