EXTRA SPACE STORAGE INC (EXR) Stock Fundamental Analysis
NYSE:EXR - New York Stock Exchange, Inc. - US30225T1025 - REIT - Currency: USD
Overall EXR gets a fundamental rating of 4 out of 10. We evaluated EXR against 30 industry peers in the Specialized REITs industry. There are concerns on the financial health of EXR while its profitability can be described as average. EXR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EXR was profitable.
In the past year EXR had a positive cash flow from operations.
In the past 5 years EXR has always been profitable.
Each year in the past 5 years EXR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EXR (3.32%) is better than 63.33% of its industry peers.
EXR has a Return On Equity of 7.07%. This is in the better half of the industry: EXR outperforms 66.67% of its industry peers.
EXR has a Return On Invested Capital (4.02%) which is comparable to the rest of the industry.
EXR had an Average Return On Invested Capital over the past 3 years of 4.86%. This is in line with the industry average of 5.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 7.07% | ||
| ROIC | 4.02% |
ROA(3y)4.31%
ROA(5y)5.19%
ROE(3y)12.69%
ROE(5y)16.69%
ROIC(3y)4.86%
ROIC(5y)5.36%
1.3 Margins
EXR's Profit Margin of 29.46% is fine compared to the rest of the industry. EXR outperforms 73.33% of its industry peers.
In the last couple of years the Profit Margin of EXR has declined.
EXR's Operating Margin of 43.33% is fine compared to the rest of the industry. EXR outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of EXR has declined.
The Gross Margin of EXR (71.25%) is comparable to the rest of the industry.
EXR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.33% | ||
| PM (TTM) | 29.46% | ||
| GM | 71.25% |
OM growth 3Y-6.69%
OM growth 5Y-2.35%
PM growth 3Y-20.63%
PM growth 5Y-3.95%
GM growth 3Y-0.98%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EXR is destroying value.
Compared to 1 year ago, EXR has more shares outstanding
The number of shares outstanding for EXR has been increased compared to 5 years ago.
Compared to 1 year ago, EXR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that EXR is in the distress zone and has some risk of bankruptcy.
EXR's Altman-Z score of 1.31 is fine compared to the rest of the industry. EXR outperforms 66.67% of its industry peers.
EXR has a debt to FCF ratio of 16.42. This is a negative value and a sign of low solvency as EXR would need 16.42 years to pay back of all of its debts.
EXR has a Debt to FCF ratio of 16.42. This is comparable to the rest of the industry: EXR outperforms 53.33% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that EXR is somewhat dependend on debt financing.
EXR's Debt to Equity ratio of 0.94 is in line compared to the rest of the industry. EXR outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 16.42 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.53
WACC7.6%
2.3 Liquidity
EXR has a Current Ratio of 0.30. This is a bad value and indicates that EXR is not financially healthy enough and could expect problems in meeting its short term obligations.
EXR has a Current ratio of 0.30. This is amonst the worse of the industry: EXR underperforms 80.00% of its industry peers.
A Quick Ratio of 0.30 indicates that EXR may have some problems paying its short term obligations.
The Quick ratio of EXR (0.30) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
EXR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.29%, which is quite good.
Measured over the past 5 years, EXR shows a small growth in Earnings Per Share. The EPS has been growing by 6.33% on average per year.
The Revenue has been growing slightly by 4.83% in the past year.
The Revenue has been growing by 20.01% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)10.29%
EPS 3Y-11.05%
EPS 5Y6.33%
EPS Q2Q%-0.84%
Revenue 1Y (TTM)4.83%
Revenue growth 3Y27.34%
Revenue growth 5Y20.01%
Sales Q2Q%3.43%
3.2 Future
Based on estimates for the next years, EXR will show a small growth in Earnings Per Share. The EPS will grow by 7.12% on average per year.
The Revenue is expected to grow by 3.57% on average over the next years.
EPS Next Y10.09%
EPS Next 2Y5.63%
EPS Next 3Y6.2%
EPS Next 5Y7.12%
Revenue Next Year2.35%
Revenue Next 2Y2.78%
Revenue Next 3Y3.96%
Revenue Next 5Y3.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.73 indicates a quite expensive valuation of EXR.
Compared to the rest of the industry, the Price/Earnings ratio of EXR indicates a somewhat cheap valuation: EXR is cheaper than 63.33% of the companies listed in the same industry.
EXR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.24, which means the current valuation is very expensive for EXR.
Based on the Price/Forward Earnings ratio, EXR is valued a bit cheaper than 66.67% of the companies in the same industry.
EXR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 28.24 |
4.2 Price Multiples
EXR's Enterprise Value to EBITDA is on the same level as the industry average.
60.00% of the companies in the same industry are cheaper than EXR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37 | ||
| EV/EBITDA | 19.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EXR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.95
PEG (5Y)4.69
EPS Next 2Y5.63%
EPS Next 3Y6.2%
5. Dividend
5.1 Amount
EXR has a Yearly Dividend Yield of 4.74%, which is a nice return.
EXR's Dividend Yield is slightly below the industry average, which is at 6.03.
Compared to an average S&P500 Dividend Yield of 2.36, EXR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
The dividend of EXR is nicely growing with an annual growth rate of 12.75%!
EXR has paid a dividend for at least 10 years, which is a reliable track record.
EXR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.75%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
141.12% of the earnings are spent on dividend by EXR. This is not a sustainable payout ratio.
EXR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP141.12%
EPS Next 2Y5.63%
EPS Next 3Y6.2%
137.05
+0.42 (+0.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.69%
Inst Owner Change-1.39%
Ins Owners0.9%
Ins Owner Change4.03%
Market Cap29.08B
Analysts69.6
Price Target166.03 (21.15%)
Short Float %1.95%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend6.5
Dividend Growth(5Y)12.75%
DP141.12%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.34%
Min EPS beat(2)1.04%
Max EPS beat(2)23.64%
EPS beat(4)3
Avg EPS beat(4)5.35%
Min EPS beat(4)-19.64%
Max EPS beat(4)23.64%
EPS beat(8)6
Avg EPS beat(8)6.42%
EPS beat(12)9
Avg EPS beat(12)4.81%
EPS beat(16)13
Avg EPS beat(16)8.4%
Revenue beat(2)0
Avg Revenue beat(2)-7.48%
Min Revenue beat(2)-8.65%
Max Revenue beat(2)-6.31%
Revenue beat(4)0
Avg Revenue beat(4)-7.46%
Min Revenue beat(4)-8.65%
Max Revenue beat(4)-6.31%
Revenue beat(8)1
Avg Revenue beat(8)-2.58%
Revenue beat(12)3
Avg Revenue beat(12)0.16%
Revenue beat(16)7
Avg Revenue beat(16)5.19%
PT rev (1m)-0.46%
PT rev (3m)0.99%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)1.32%
EPS NY rev (1m)0%
EPS NY rev (3m)5.76%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 28.24 | ||
| P/S | 8.79 | ||
| P/FCF | 37 | ||
| P/OCF | 15.29 | ||
| P/B | 2.11 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 19.18 |
EPS(TTM)4.61
EY3.36%
EPS(NY)4.85
Fwd EY3.54%
FCF(TTM)3.7
FCFY2.7%
OCF(TTM)8.96
OCFY6.54%
SpS15.59
BVpS64.99
TBVpS64.08
PEG (NY)2.95
PEG (5Y)4.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 7.07% | ||
| ROCE | 5.09% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 4.07% | ||
| OM | 43.33% | ||
| PM (TTM) | 29.46% | ||
| GM | 71.25% | ||
| FCFM | 23.76% |
ROA(3y)4.31%
ROA(5y)5.19%
ROE(3y)12.69%
ROE(5y)16.69%
ROIC(3y)4.86%
ROIC(5y)5.36%
ROICexc(3y)4.89%
ROICexc(5y)5.4%
ROICexgc(3y)4.99%
ROICexgc(5y)5.5%
ROCE(3y)6.15%
ROCE(5y)6.79%
ROICexcg growth 3Y-15.49%
ROICexcg growth 5Y-8.59%
ROICexc growth 3Y-15.27%
ROICexc growth 5Y-8.37%
OM growth 3Y-6.69%
OM growth 5Y-2.35%
PM growth 3Y-20.63%
PM growth 5Y-3.95%
GM growth 3Y-0.98%
GM growth 5Y-0.06%
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 16.42 | ||
| Debt/EBITDA | 5.91 | ||
| Cap/Depr | 149% | ||
| Cap/Sales | 33.73% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 87.14% | ||
| Profit Quality | 80.65% | ||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 1.31 |
F-Score5
WACC7.6%
ROIC/WACC0.53
Cap/Depr(3y)221.95%
Cap/Depr(5y)275.25%
Cap/Sales(3y)37.71%
Cap/Sales(5y)44.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.29%
EPS 3Y-11.05%
EPS 5Y6.33%
EPS Q2Q%-0.84%
EPS Next Y10.09%
EPS Next 2Y5.63%
EPS Next 3Y6.2%
EPS Next 5Y7.12%
Revenue 1Y (TTM)4.83%
Revenue growth 3Y27.34%
Revenue growth 5Y20.01%
Sales Q2Q%3.43%
Revenue Next Year2.35%
Revenue Next 2Y2.78%
Revenue Next 3Y3.96%
Revenue Next 5Y3.57%
EBIT growth 1Y2.75%
EBIT growth 3Y18.82%
EBIT growth 5Y17.19%
EBIT Next Year51.1%
EBIT Next 3Y17.19%
EBIT Next 5Y12.21%
FCF growth 1Y399.44%
FCF growth 3YN/A
FCF growth 5Y29.67%
OCF growth 1Y54.98%
OCF growth 3Y25.61%
OCF growth 5Y21.68%