Tejon Ranch Co Common Stock (TRC)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Tejon Ranch as a Graham-style asset play rather than a compounding business. It owns land and operates six segments across real estate development, mineral resources, farming, and ranch operations, with only 65 employees. At the 2026-10-13 close of $16.50, FairStock calculates P/B of 0.94, so the market values the equity slightly below book. That is the main attraction. FairStock's Lynch category is ASSET PLAY — Trades at 0.94× book value. But a low price-to-book is only a starting point. The earnings record is thin: in FY2025, the year ended 2025-12-31, revenue was $49.6 million and net income was $75,000, or $0.00 per diluted share. In FY2024, revenue was $41.9 million and net income was $2.7 million, or $0.10 per diluted share. The most recent filing is better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $14.3 million and net income was $2.6 million, or $0.10 per diluted share, versus a net loss of $1.7 million in fiscal Q2 2025. Still, trailing free cash flow is negative $30.4 million, a FairStock-calculated FCF yield of -6.8%. FairStock's ROE is 1.23% and ROCE is -0.07%, so capital is not earning much. The balance sheet is modestly levered with D/E 0.19 and a Piotroski F-Score of 7/9, but Altman Z-Score of 2.14 is in the gray zone. FairStock's Graham Number is $9.35, implying the price is 76.47% above that conservative earnings-based value. At P/E 75 and EV/EBITDA 86.03, the stock is not cheap on current profits. The question is whether land value and development eventually convert into cash earnings; today, the numbers show an asset-rich but low-return enterprise.

In plain English: Tejon Ranch develops land and runs farming and mineral operations on its property. Profits are tiny and uneven: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $14.3 million and net income $2.6 million, but FY2025 net income was only $75,000. At $16.50, the price looks low against the accounting value of its assets but high against its recent profits and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer