One-glance verdict
Overvalued
$74.40 our estimate vs market $130.10
Wall Street consensus: $152.07 (104.4% higher than our fair-value estimate)
75% above our estimate, beyond the bull case
Fundamentals snapshot
Prologis, Inc.
PLD · NYQ · Real Estate · REIT - Industrial
Current price
$130.10
52-week range
$121.40 - $153.35
Market cap
$126.49B
Balance sheet
Stretched
3.51x Stretched
Net debt $35.20B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 1.8% last year.
- Reward Returns 7.7% on equity, ahead of 33% of its peers.
- Risk Forward P/E (36.1x) is higher than trailing (28.7x) - earnings are expected to drop.
- Risk Net debt grew 42.5% over 3 years.
What this company does
Prologis, Inc.
Prologis, Inc. builds and manages industrial warehouses and logistics facilities that are crucial for moving goods around the world. Their main source of money comes from rent paid by businesses that use these spaces, which is a predictable income stream. This is important because these warehouses are a key part of the modern supply chain (the system that gets products from where they are made to where they are sold), and Prologis's role helps businesses operate more efficiently.
How the company got here
Prologis has roots stretching back to 1983, initially as AMB Property Corporation, which focused on managing real estate investments for large institutions. The modern Prologis was formed in 2011 through a significant merger between AMB Property Corporation and ProLogis. Over the years, Prologis has strategically grown by acquiring other companies, such as DCT Industrial Trust in 2018, Liberty Property Trust in 2020, and Duke Realty in 2022, solidifying its position as a global leader in logistics real estate. The company's history is marked by a deliberate pivot towards industrial properties and a focus on e-commerce-driven markets, positioning it at the forefront of modern supply chain needs.
What it actually does
Prologis is a global real estate investment trust (REIT) that owns, manages, and develops logistics facilities, primarily warehouses and distribution centers. Think of them as the landlords for the buildings where goods are stored and moved before they reach consumers. Their properties are strategically located near major transportation hubs like ports and highways, as well as in densely populated areas, to help businesses efficiently manage their supply chains. Prologis essentially provides the physical infrastructure that powers global commerce, connecting the digital and physical worlds of trade.
Real Estate Operations
This is the core of Prologis' business, making up the vast majority of its revenue. It involves owning, operating, and leasing industrial properties, such as warehouses and distribution centers, to a wide range of customers, including e-commerce companies, retailers, and logistics providers. Prologis generates income by collecting rent from these tenants, aiming to maintain high occupancy rates and increase rental income over time as leases are renewed. This segment also includes the development of new logistics facilities on land the company owns or redevelops existing properties to meet market demand.
Strategic Capital
This segment represents Prologis' business of managing investment ventures and capital on behalf of institutional partners, like pension funds or insurance companies. Essentially, Prologis partners with other investors to acquire and develop properties, leveraging their expertise in logistics real estate. Prologis earns fees for managing these assets and capital, which provides a steady stream of income. This allows Prologis to grow its portfolio and reach without having to fund all acquisitions solely with its own capital.
What management is betting on now
Prologis is focused on several key strategies to drive future growth. They are actively working to increase rental income from their existing properties by aligning lease renewals with current market rates, a concept known as embedded rent growth. The company is also expanding its Prologis Essentials offerings, which provide additional services to their tenants beyond just leasing space, such as energy solutions, solar power, and electric vehicle charging infrastructure. Furthermore, Prologis continues to grow its Strategic Capital business, attracting more institutional investment to fund expansion and generate fee income.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$2.30B
Net income
$981.98M
Diluted EPS
1.05
Operating cash flow
$1.29B
Free cash flow
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Revenue
$2.25B
Net income
$1.40B
Diluted EPS
1.49
Operating cash flow
$1.16B
Free cash flow
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Revenue
$2.21B
Net income
$764.27M
Diluted EPS
0.82
Operating cash flow
$1.45B
Free cash flow
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Revenue
$2.18B
Net income
$571.23M
Diluted EPS
0.61
Operating cash flow
$1.24B
Free cash flow
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Revenue
$2.14B
Net income
$592.95M
Diluted EPS
0.63
Operating cash flow
$1.16B
Free cash flow
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Revenue
$2.20B
Net income
$1.28B
Diluted EPS
1.37
Operating cash flow
$1.34B
Free cash flow
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Revenue
$2.04B
Net income
$1.01B
Diluted EPS
1.08
Operating cash flow
$1.43B
Free cash flow
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Revenue
$2.01B
Net income
$861.35M
Diluted EPS
0.92
Operating cash flow
$1.09B
Free cash flow
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Is it cheap or expensive?
Fair value $74.40 vs current price $130.10
Wall Street consensus is the average analyst price target: $152.07 (104.4% higher than our fair-value estimate).
Our most-likely fair value is $74.40 a share — about 42.8% below today's price of $130.10, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $35.2B. Interest coverage 3.5x.
Net debt
$35.20B
Interest coverage
3.51x
Prologis, Inc.'s profit covers its interest bill about 3.5 times over.
Stretched
Worse cushion
Baseline
Better cushion
PLD
BASELINE
Prologis, Inc.
Total debt $37.49B Interest coverage 3.51x This is the baseline the peer rows are being compared against.
Total debt $2.78B Interest coverage 3.63x +3% vs PLD Has roughly the same debt cushion as PLD.
Total debt $2.66B Interest coverage 3.62x +3% vs PLD Has roughly the same debt cushion as PLD.
Total debt $1.85B Interest coverage 9.82x +180% vs PLD Carries about 2.8x more debt cushion than PLD.
Total debt $898.60M Interest coverage 5.86x +67% vs PLD Carries about 1.7x more debt cushion than PLD.
Total debt $3.46B Interest coverage 2.42x -31% vs PLD Carries about 1.5x less debt cushion than PLD.
What you should know
The case for and against PLD
3 Rewards
3 Risks
Rewards
-
Revenue grew 1.8% last year.
-
Returns 7.7% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (36.1x) is higher than trailing (28.7x) - earnings are expected to drop.
-
Net debt grew 42.5% over 3 years.
-
Insider ownership is only 0.3% (peer median: 0.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
28.66x
Forward P/E
36.11x
P/B
2.21x
P/S
12.79x
EV/EBITDA
23.72x
PEG ratio
2.91x
Profitability
How much profit each dollar creates
Gross margin
75.7%
Operating margin
42.9%
Net margin
43.1%
ROE
7.7%
ROA
2.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.62x
Current ratio
0.73x
Quick ratio
0.57x
Total debt
$37.49B
Total cash
$2.29B
Growth
How the business has been compounding
Revenue TTM
$8.95B
Revenue 5Y CAGR
16.6%
EPS TTM
4.54
EPS 5Y CAGR
-5.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.14B
Free CF TTM
$5.01B
FCF margin
56.0%
Dividend
Shareholder payout
Yield
3.3%
Payout ratio
93.0%
Last ex-div date
2026-09-16