Terreno Realty Corporation Common Stock (TRNO)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $209 million in annual free cash flow (3.0% yield on market cap)
• Solid return on equity of 10.3% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.23, providing financial flexibility
• Superior net profit margin of 33.1% indicating pricing power and operational efficiency
• Revenue growth of 32.6% demonstrates strong top-line momentum

AI Analysis

Terreno Realty Corporation Common Stock is a small-cap real estate company valued at $7.0 billion. The business generates $476 million in annual revenue with a 33.1% net margin and $209 million in free cash flow. From a quality standpoint, Terreno shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.5. On valuation, the stock is reasonably priced at 17.0x earnings, with trades above its Graham Number with a negative 11% margin. Growth dynamics show revenue growing at 32.6% and profit growth of 107.9%. The 3.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 76/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Terreno's 33% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $209 million in annual free cash flow (3.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the real estate space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer