COLD

AMERICOLD REALTY TRUST holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 39.8/100 places it at rank #3556 in our full 7,333-stock universe. At $3.5B in market capitalization, AMERICOLD REALTY TRUST is a mid-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue is growing at 0%, though momentum at the 27th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.

The margin cascade tells an important story: gross margins of 32% (-44.5pp vs sector) narrow to operating margins of 4% (-12.9pp vs sector) and net margins of -1.2%, yielding a gross-to-net conversion rate of -4%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

We do not assign AMERICOLD REALTY TRUST a meaningful economic moat, scoring 18/100 on our composite assessment. The ROIC-WACC spread of -4.8% is the primary signal of economic value creation. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, margin superiority, reached only 6.4/20.

The strongest moat sources are margin superiority (6.4/20) and growth durability (5.5/20). GM 32% vs sector 77%, OM 4% vs sector 17%. Rev growth 0%, 8yr history. These pillars form the core of AMERICOLD REALTY TRUST's competitive identity and are the primary drivers of excess returns in our framework.

Areas of relative weakness include reinvestment efficiency (0/20) and financial resilience (2/20). Capital turnover 0.17x. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.

Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect AMERICOLD REALTY TRUST's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.

At a current price of $13.11, AMERICOLD REALTY TRUST is trading near fair value based on current fundamentals. Our value factor score of 42/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at EV/EBITDA of 35.8x (at a premium), P/B of 1.2x, P/S of 1.5x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.

Key profit drivers are not clearly identifiable from current fundamentals. This may reflect a company in transition, a cyclical downturn, or structural challenges in the business model. We assign a quality factor of 47/100 which further underscores our concern regarding earnings sustainability.

The margin profile shows gross margins of 32%, operating margins of 4%, net margins of -1.2%. Return metrics include ROE of -1.0% and ROA of -0.4%. Relative to the Finance, Insurance, And Real Estate sector, gross margins are 44.5 percentage points below the sector median of 77%, and ROE of -1.0% compares to a sector median of 8.9%.

The balance sheet reflects high leverage with D/E of 163%, which may limit financial flexibility, a dividend yield of 7.43%, revenue growth of 0%. The sector median D/E is 0%, putting AMERICOLD REALTY TRUST at higher leverage than the typical peer. Elevated leverage in combination with the current margin profile warrants close monitoring for any deterioration in debt-servicing capacity.

We assign a Very High uncertainty rating to AMERICOLD REALTY TRUST. The stock exhibits multiple compounding risk factors: significant leverage (163% debt-to-equity), current negative profitability (net margin -1.2%), below-average price stability (24th percentile). The extreme uncertainty around future cash flows makes precise valuation difficult, and the range of outcomes is exceptionally wide. Only investors with high risk tolerance and extended time horizons should consider this name.

Specific risk factors that inform our assessment include: significant leverage (163% debt-to-equity); current negative profitability (net margin -1.2%); below-average price stability (24th percentile); the combination of leverage (163% D/E) and thin margins (-1.2% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 24th percentile and quality factor at the 47th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: a 7.43% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate AMERICOLD REALTY TRUST's capital allocation as Poor. Key concerns include low returns on equity (-1.0%), elevated leverage (163% D/E), negative profitability, weak asset returns (ROA -0.4%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — AMERICOLD REALTY TRUST significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, AMERICOLD REALTY TRUST receives a Avoid rating with a composite score of 39.8/100 (rank #3556 of 7,333). Our quantitative framework assigns a No Moat (18/100, trend: stable), Very High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 36/100.

Our analysis does not support a constructive view on AMERICOLD REALTY TRUST at this time. The combination of limited competitive advantages, very high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.