Tejon Ranch Company (TRC) AI Stock Analysis

• Market Cap: $442.73M
• Dividend Yield: N/A
• Average Volume (3M): 114.40K
• Price to Earnings (P/E): 206.9
• Beta (1Y): 0.55
• Revenue Growth: 7.04%
• EPS Growth: 268.20%
• Country: US
• Employees: 82
• Sector: Industrials
• Sector Strength: 90
• Industry: Conglomerates
• EPS (TTM): -0.05
• Shares Outstanding: 26,881,174
• 10 Day Avg. Volume: 111,246
• 30 Day Avg. Volume: 114,404
• PEG Ratio: 0.16
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.13
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 147.47
• Enterprise Value/Ebitda: -22.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: $16.00 ▼(-0.37%Downside)

Tejon Ranch Company's financial performance is the primary concern, with fluctuating revenue and profitability issues. The technical indicators provide mixed signals, showing neither strong bullish nor bearish trends. Valuation metrics indicate significant overvaluation, further impacting the stock score negatively. With no earnings call or corporate events data available, the overall score is heavily influenced by these existing factors.

Tejon Ranch Company Business Overview & Revenue Model

Company Description

Tejon 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 Money

Tejon Ranch Company generates revenue through a multi-faceted business model. A significant portion of its income is derived from real estate development, where the company develops and sells residential, commercial, and industrial properties on its land holdings. This includes leasing land for commercial use, which provides a steady stream of lease income. Additionally, TRC earns revenue from agricultural operations, which involve the cultivation and sale of crops such as almonds, pistachios, and wine grapes. The company also engages in resource management activities, including mineral extraction and water rights management, which contribute to its earnings. Key partnerships and joint ventures with other developers and businesses help optimize their land use and maximize revenue potential.

Tejon Ranch Company Financial Statement Overview

Summary

Tejon Ranch Company faces challenges in maintaining revenue growth and profitability. The income statement indicates a negative trend in revenue with decreasing gross profit margins. The balance sheet is stable but reflects some inconsistencies in return on equity. The cash flow statement raises concerns due to negative free cash flow, indicating potential liquidity issues.

Income Statement

Tejon Ranch Company has experienced fluctuating revenue with a negative trend in recent years, as seen from the TTM data. Gross profit margin has decreased significantly, and net profit margins are low, indicating challenges in maintaining profitability. EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is moderate, suggesting manageable leverage. However, return on equity has been inconsistent due to fluctuating net income. The equity ratio is stable, indicating solid asset backing. Overall, the balance sheet shows a reasonable financial position with some room for improvement in profitability.

Cash Flow

Operating cash flow covers net income, but free cash flow is negative, reflecting high capital expenditures. The free cash flow growth rate is concerning, with significant negative figures in recent periods. This indicates potential liquidity issues if the trend continues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
42.69M	41.89M	44.74M	79.22M	55.61M	37.83M
	Gross Profit
3.46M	1.89M	6.17M	23.43M	9.58M	2.68M
	EBIT
-9.38M	-9.20M	-3.70M	13.73M	-317.00K	-6.75M
	EBITDA
-4.56M	-4.31M	969.00K	17.72M	4.33M	-1.70M
	Net Income Common Stockholders
2.14M	2.69M	3.27M	15.81M	5.35M	-747.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.93M	53.71M	64.46M	72.56M	47.18M	58.09M
	Total Assets
614.55M	608.00M	577.52M	566.79M	546.04M	536.35M
	Total Debt
74.44M	66.94M	47.94M	49.94M	52.63M	56.88M
	Net Debt
62.16M	27.68M	16.04M	10.82M	16.43M	1.56M
	Total Liabilities
126.72M	119.04M	94.43M	89.20M	89.53M	91.02M
	Stockholders Equity
472.48M	473.59M	467.73M	462.23M	441.15M	429.96M
Cash Flow		Free Cash Flow
-67.12M	-51.79M	-13.71M	-15.06M	-20.48M	-10.35M
	Operating Cash Flow
12.19M	14.31M	13.65M	8.53M	2.82M	15.48M
	Investing Cash Flow
-61.47M	-25.75M	-14.00M	-1.89M	-14.65M	19.78M
	Financing Cash Flow
26.01M	18.79M	-6.87M	-4.42M	-6.09M	-7.04M

Tejon Ranch Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRC, the sentiment is Positive. The current price of 16.06 is below the 20-day moving average (MA) of 16.38, below the 50-day MA of 16.46, and below the 200-day MA of 16.35, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 67.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRC.

Tejon Ranch Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDU	68 Neutral	$3.44B	13.16	9.63%	3.09%	-25.50%	-45.13%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
IRS	65 Neutral	$1.09B	7.67	11.71%	6.79%	-0.52%	―
SPLP	63 Neutral	$793.79M	3.59	24.14%	―	5.83%	72.33%
FIP	58 Neutral	$717.26M	―	-6.42%	1.92%	5.70%	36.39%
CRESY	55 Neutral	$669.02M	6.17	12.81%	10.94%	-3.07%	-18.57%
TRC	47 Neutral	$442.73M	206.90	0.46%	―	7.04%	268.20%

Tejon Ranch Company Corporate Events

Tejon Ranch Co. Confirms 2025 Shareholder Meeting Results

At the 2025 Annual Meeting of Shareholders held on May 13, 2025, Tejon Ranch Co. presented four proposals for voting, including the election of ten directors, ratification of Deloitte & Touche LLP as the independent accounting firm, approval of executive compensation, and a shareholder proposal regarding special meetings. The results, certified by First Coast Results, Inc., confirmed the election of directors such as Steven A. Betts and Andrew Dakos, the ratification of the accounting firm, approval of executive compensation, and rejection of the shareholder proposal on special meetings.

Tejon Ranch Co. Announces Board Size Reduction

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.