(TRC) Tejon Ranch - Ratings and Ratios

Tejon Ranch Co is a diversified real estate development and agribusiness company with a rich history dating back to 1843. The companys operations are segmented into five key areas: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations. Its diversified portfolio includes land development, infrastructure projects, mineral extraction, and agricultural production, making it a unique player in the US real estate and agriculture sectors.

The companys Commercial/Industrial Real Estate Development segment is a significant contributor, with a focus on planning, permitting, and constructing infrastructure projects, as well as leasing and selling land to third-party developers. Additionally, Tejon Ranch Co generates revenue from leasing land to various businesses, including convenience stores, restaurants, and telecommunications companies. Its Resort/Residential Real Estate Development segment is involved in land entitlement, planning, and conservation activities, positioning the company for long-term growth in the California real estate market.

Tejon Ranch Cos Mineral Resources segment provides a steady stream of income through oil and gas royalties, rock and aggregate royalties, and royalties from a cement operation. The companys Farming segment produces a range of crops, including wine grapes, almonds, pistachios, and hay, while also leasing land for vegetable production. The Ranch Operations segment includes grazing leases, game management, and land maintenance activities, as well as ancillary land uses such as filming and guided game hunts.

Analyzing the and , we can identify trends and insights that inform our forecast. The stocks current price is $16.48, with a 20-day SMA of $16.86 and a 50-day SMA of $16.24, indicating a potential short-term correction. The 200-day SMA is $16.50, suggesting a longer-term uptrend. With an ATR of 0.50, representing 3.06% volatility, we can expect price movements to be relatively contained. The 52-week high and low are $19.58 and $14.82, respectively, providing context for the stocks current valuation.

Using the , we note that Tejon Ranch Co has a market capitalization of $463.47M USD and a P/E ratio of 172.50, indicating a relatively high valuation. The P/E Forward ratio is similarly high at 172.41, suggesting that the market expects significant earnings growth in the future. However, the RoE is negative at -0.14, indicating that the company is currently unprofitable. Based on these metrics, our forecast is that Tejon Ranch Co will experience a short-term correction, potentially down to $15.50, before resuming its longer-term uptrend. We expect the companys diversified portfolio and strategic land holdings to drive growth in the Resort/Residential Real Estate Development and Mineral Resources segments, ultimately leading to improved profitability and a revaluation of the stock.