Tejon Ranch Company (TRC) AI Stock Analysis

• Market Cap: $439.78M
• Dividend Yield: N/A
• Average Volume (3M): 135.38K
• Price to Earnings (P/E): 205.3
• Beta (1Y): 0.57
• Revenue Growth: 7.04%
• EPS Growth: 268.20%
• Country: US
• Employees: 82
• Sector: Industrials
• Sector Strength: 92
• Industry: Conglomerates
• EPS (TTM): -0.05
• Shares Outstanding: 26,881,174
• 10 Day Avg. Volume: 129,208
• 30 Day Avg. Volume: 135,384
• PEG Ratio: -8.06
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -71.61
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 248.40
• Enterprise Value/Ebitda: -19.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $16.50 ▲( 1.16% Upside)

TRC's overall stock score is primarily impacted by its financial challenges, including declining revenue and profitability. While the balance sheet is strong, the high P/E ratio suggests overvaluation. Technical analysis shows a neutral trend, providing little directional guidance.

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 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 faces challenges in sustaining revenue and profitability, evidenced by declining income and negative margins. The balance sheet is stable, supported by strong equity, but returns on this equity are concerning. Cash management shows some improvement, though historical volatility suggests room for improvement. Overall, the company's financial health is stable but with significant areas needing attention, particularly in profitability and cash flow generation.

Income Statement

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

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

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

Tejon Ranch Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.31
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 16.31 is below the 20-day moving average (MA) of 16.72, below the 50-day MA of 16.38, and below the 200-day MA of 16.40, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.14 is Neutral, neither overbought nor oversold. The STOCH value of 37.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$3.45B	13.20	9.63%	3.05%	-25.50%	-45.13%
IRS	65 Neutral	$1.19B	8.30	11.71%	6.27%	-0.52%	―
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
SPLP	58 Neutral	$744.00M	3.47	24.14%	―	5.83%	72.33%
FIP	55 Neutral	$573.81M	―	-6.42%	2.39%	5.70%	36.39%
TRC	49 Neutral	$439.78M	205.27	0.46%	―	7.04%	268.20%
CRESY	48 Neutral	$719.12M	6.73	12.81%	8.12%	-3.07%	-18.57%

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.