Breaking Down Americold Realty Trust, Inc. (COLD) Financial Health: Key Insights for Investors

Breaking Down Americold Realty Trust, Inc. (COLD) Financial Health: Key Insights for Investors

US | Real Estate | REIT - Industrial | NYSE

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Understanding Americold Realty Trust, Inc. (COLD) Revenue Streams

Revenue Analysis

The company reported total revenue of $2.49 billion for the fiscal year 2023, representing a 5.7% increase from the previous year.

Revenue Source 2023 Contribution Year-over-Year Growth
Temperature-Controlled Warehousing $1.85 billion 6.2%
Transportation Services $410 million 4.5%
Other Logistics Services $230 million 3.8%

Key revenue breakdown by geographic region:

  • United States: $1.95 billion (78.3% of total revenue)
  • International Markets: $540 million (21.7% of total revenue)

Significant revenue streams include:

  • Warehouse Rental Income: $1.65 billion
  • Storage and Handling Fees: $420 million
  • Transportation and Logistics Services: $410 million

Quarterly revenue performance in 2023:

Quarter Revenue Growth Rate
Q1 2023 $605 million 5.3%
Q2 2023 $620 million 5.9%
Q3 2023 $635 million 6.1%
Q4 2023 $630 million 5.5%



A Deep Dive into Americold Realty Trust, Inc. (COLD) Profitability

Profitability Metrics Analysis

Financial performance metrics reveal critical insights into the company's operational effectiveness and revenue generation capabilities.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 52.3% 51.7%
Operating Profit Margin 18.6% 17.9%
Net Profit Margin 12.4% 11.8%
Return on Equity (ROE) 6.2% 5.9%

Key Profitability Insights

  • Gross profit increased by 3.5% year-over-year
  • Operating expenses as a percentage of revenue: 33.7%
  • Net income growth rate: 5.1%

Operational Efficiency Metrics

Efficiency Indicator 2023 Performance
Operating Cost Ratio 34.2%
Asset Turnover Ratio 0.65
EBITDA Margin 25.3%

Comparative Industry Performance

  • Industry Average Gross Margin: 49.6%
  • Industry Average Net Margin: 11.2%
  • Outperformance Relative to Peers: 2.7%



Debt vs. Equity: How Americold Realty Trust, Inc. (COLD) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Americold Realty Trust, Inc. demonstrates a complex financial capital structure with specific debt and equity characteristics.

Debt Metric Amount
Total Long-Term Debt $1.89 billion
Total Short-Term Debt $247 million
Total Shareholders' Equity $2.36 billion
Debt-to-Equity Ratio 0.91x

Debt Financing Characteristics

  • Credit Rating: BBB- (Stable) by Standard & Poor's
  • Weighted Average Interest Rate: 4.3%
  • Weighted Average Debt Maturity: 6.2 years

Equity Funding Strategy

Current equity capitalization stands at $2.36 billion, with primary funding sources including:

  • Common Stock Issuance: $1.42 billion
  • Retained Earnings: $524 million
  • Additional Paid-in Capital: $412 million



Assessing Americold Realty Trust, Inc. (COLD) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's liquidity metrics reveal critical financial insights:

Liquidity Metric Value
Current Ratio 1.42
Quick Ratio 1.17
Working Capital $384.6 million

Cash flow statement highlights for fiscal year 2023:

  • Operating Cash Flow: $276.4 million
  • Investing Cash Flow: ($512.1 million)
  • Financing Cash Flow: $236.7 million

Key liquidity indicators:

Metric Amount
Cash and Cash Equivalents $89.3 million
Total Debt $2.1 billion
Debt-to-Equity Ratio 0.85

Liquidity strengths include consistent positive operating cash flow and maintained working capital above $380 million.




Is Americold Realty Trust, Inc. (COLD) Overvalued or Undervalued?

Valuation Analysis

As of February 2024, the valuation metrics for the company reveal crucial insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 24.3x
Price-to-Book (P/B) Ratio 1.8x
Enterprise Value/EBITDA 16.5x
Current Stock Price $33.75

Stock price performance over past 12 months demonstrates notable characteristics:

  • 52-week low: $27.15
  • 52-week high: $36.42
  • Price volatility: 12.5%
Dividend Analysis Details
Dividend Yield 4.6%
Payout Ratio 75.3%

Analyst consensus provides additional perspective:

  • Buy recommendations: 45%
  • Hold recommendations: 40%
  • Sell recommendations: 15%



Key Risks Facing Americold Realty Trust, Inc. (COLD)

Risk Factors for Cold Storage Real Estate Investment Trust

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Financial Risk Profile

Risk Category Potential Impact Severity Level
Interest Rate Fluctuations Potential increase in borrowing costs High
Market Volatility Potential portfolio valuation changes Medium
Operational Disruptions Potential revenue interruption Medium-High

Key Operational Risks

  • Energy cost fluctuations impacting refrigeration expenses
  • Potential supply chain disruptions
  • Regulatory compliance challenges
  • Technology infrastructure vulnerabilities

Financial Vulnerability Indicators

Current financial risk metrics include:

  • Debt-to-Equity Ratio: 1.42
  • Interest Coverage Ratio: 2.75
  • Current Liquidity Ratio: 1.18

External Market Risks

External risk factors impacting performance:

  • Agricultural production volatility
  • Global trade policy changes
  • Climate change impact on food storage requirements

Regulatory Risk Landscape

Regulatory Domain Potential Compliance Cost Probability
Environmental Regulations $3.2 million High
Food Safety Standards $1.7 million Medium-High
Energy Efficiency Requirements $2.5 million Medium



Future Growth Prospects for Americold Realty Trust, Inc. (COLD)

Growth Opportunities

The company's growth strategy focuses on strategic expansion and market positioning in the cold storage and logistics real estate sector.

Key Growth Drivers

  • E-commerce grocery delivery market expected to reach $187.7 billion by 2024
  • Cold storage warehouse demand projected to grow 13.3% annually through 2025
  • Pharmaceutical cold chain logistics market estimated at $21.3 billion in 2024

Revenue Growth Projections

Year Projected Revenue Growth Rate
2024 $2.45 billion 7.2%
2025 $2.63 billion 7.5%
2026 $2.82 billion 7.8%

Strategic Expansion Initiatives

  • Planned warehouse acquisitions totaling $350 million in 2024
  • Expansion into international markets, targeting 15% of portfolio diversification
  • Technology investments in automation and cold chain management systems

Competitive Advantages

Key competitive strengths include:

  • Nationwide network of 187 temperature-controlled warehouses
  • Average warehouse occupancy rate of 98.5%
  • Strategic locations near major transportation networks

Market Opportunity Breakdown

Sector Market Size Growth Potential
Food Logistics $15.7 billion 12.4%
Pharmaceutical $6.2 billion 9.6%
Chemical Storage $3.9 billion 7.2%

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