(TRC) Tejon Ranch - Ratings and Ratios

Tejon Ranch Co. (NYSE:TRC) is a diversified real estate development and agribusiness company with a rich history dating back to 1843. Headquartered in Lebec, California, the company operates through five distinct business segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations. Its operations span across large landholdings, leveraging its strategic location in Southern California for various commercial, industrial, and agricultural activities.

The Commercial/Industrial Real Estate Development segment focuses on land planning, infrastructure construction, and pre-leased buildings. It also manages a diverse portfolio of leases, including auto service stations, fast-food outlets, and telecommunications sites. This segment plays a critical role in generating consistent cash flow through long-term agreements with tenants across different industries.

The Resort/Residential Real Estate Development segment is centered on land entitlement, pre-construction planning, and conservation efforts. This segment positions the company for future growth in the residential and resort markets, particularly in high-demand areas of California. Its emphasis on stewardship and conservation aligns with increasing environmental regulations and community expectations.

The Mineral Resources segment generates revenue through oil, gas, and aggregate royalties, as well as water asset management. A key contributor to this segment is the cement operation leased to National Cement Company of California, Inc., highlighting the companys ability to monetize its natural resources effectively.

The Farming segment is a significant contributor to the companys agribusiness operations, focusing on high-value crops such as almonds, pistachios, and wine grapes. It also leases land for vegetable farming and manages alfalfa production in the Antelope Valley, diversifying its agricultural revenue streams.

The Ranch Operations segment offers a mix of game management, grazing leases, and filming services. This segment capitalizes on the companys vast landholdings to provide unique recreational and commercial opportunities, further diversifying its income sources.

3-Month Forecast: Based on the provided and , TRCs stock is expected to face downward pressure in the near term. The declining SMA 20 and SMA 50 relative to the SMA 200 suggest a bearish trend. Support levels may form near $15.00, with resistance at $16.50. The high P/S ratio and negative RoE indicate challenges in generating profitability, which could weigh on investor sentiment. However, the low P/B ratio of 0.89 suggests undervaluation, potentially offering a buying opportunity for long-term investors. Short-term traders may consider selling rallies toward the $16.00 level, while long-term investors might await clearer signs of operational turnaround before accumulating positions.