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LIFE STORAGE INC (LSI) Stock Fundamental Analysis

NYSE:LSI - New York Stock Exchange, Inc. - US53223X1072 - REIT - Currency: USD

133.1  -1.02 (-0.76%)

After market: 133.7 +0.6 (+0.45%)

Fundamental Rating

4

Taking everything into account, LSI scores 4 out of 10 in our fundamental rating. LSI was compared to 30 industry peers in the Specialized REITs industry. While LSI belongs to the best of the industry regarding profitability, there are concerns on its financial health. LSI is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year LSI was profitable.
LSI had a positive operating cash flow in the past year.
Each year in the past 5 years LSI has been profitable.
In the past 5 years LSI always reported a positive cash flow from operatings.
LSI Yearly Net Income VS EBIT VS OCF VS FCFLSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 500M -500M -1B

1.2 Ratios

The Return On Assets of LSI (4.96%) is better than 73.33% of its industry peers.
With a decent Return On Equity value of 10.27%, LSI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
LSI has a Return On Invested Capital (5.20%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for LSI is in line with the industry average of 5.28%.
The last Return On Invested Capital (5.20%) for LSI is above the 3 year average (4.37%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.96%
ROE 10.27%
ROIC 5.2%
ROA(3y)3.95%
ROA(5y)4.66%
ROE(3y)7.88%
ROE(5y)9.16%
ROIC(3y)4.37%
ROIC(5y)4.38%
LSI Yearly ROA, ROE, ROICLSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2 4 6 8 10

1.3 Margins

The Profit Margin of LSI (33.96%) is better than 76.67% of its industry peers.
In the last couple of years the Profit Margin of LSI has grown nicely.
The Operating Margin of LSI (44.13%) is better than 76.67% of its industry peers.
In the last couple of years the Operating Margin of LSI has grown nicely.
LSI's Gross Margin of 73.35% is in line compared to the rest of the industry. LSI outperforms 50.00% of its industry peers.
LSI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 44.13%
PM (TTM) 33.96%
GM 73.35%
OM growth 3Y4.08%
OM growth 5Y6.35%
PM growth 3Y-8.49%
PM growth 5Y13.65%
GM growth 3Y3.43%
GM growth 5Y2.08%
LSI Yearly Profit, Operating, Gross MarginsLSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 20 40 60

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2

2. Health

2.1 Basic Checks

LSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LSI has been increased compared to 1 year ago.
Compared to 1 year ago, LSI has a worse debt to assets ratio.
LSI Yearly Shares OutstandingLSI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
LSI Yearly Total Debt VS Total AssetsLSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B

2.2 Solvency

LSI has an Altman-Z score of 2.07. This is not the best score and indicates that LSI is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of LSI (2.07) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that LSI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.95, LSI is in line with its industry, outperforming 56.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF N/A
Altman-Z 2.07
ROIC/WACC0.66
WACC7.85%
LSI Yearly LT Debt VS Equity VS FCFLSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 1B -1B 2B 3B

2.3 Liquidity

LSI has a Current Ratio of 0.50. This is a bad value and indicates that LSI is not financially healthy enough and could expect problems in meeting its short term obligations.
LSI has a worse Current ratio (0.50) than 70.00% of its industry peers.
A Quick Ratio of 0.50 indicates that LSI may have some problems paying its short term obligations.
The Quick ratio of LSI (0.50) is worse than 70.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.5
Quick Ratio 0.5
LSI Yearly Current Assets VS Current LiabilitesLSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 26.02% over the past year.
The Earnings Per Share has been growing by 22.29% on average over the past years. This is a very strong growth
LSI shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.83%.
Measured over the past years, LSI shows a quite strong growth in Revenue. The Revenue has been growing by 14.40% on average per year.
EPS 1Y (TTM)26.02%
EPS 3Y23.24%
EPS 5Y22.29%
EPS Q2Q%9.09%
Revenue 1Y (TTM)26.83%
Revenue growth 3Y21.79%
Revenue growth 5Y14.4%
Sales Q2Q%17.18%

3.2 Future

Based on estimates for the next years, LSI will show a small growth in Earnings Per Share. The EPS will grow by 5.56% on average per year.
Based on estimates for the next years, LSI will show a small growth in Revenue. The Revenue will grow by 7.90% on average per year.
EPS Next Y6.43%
EPS Next 2Y8.5%
EPS Next 3Y8.37%
EPS Next 5Y5.56%
Revenue Next Year2.51%
Revenue Next 2Y3.8%
Revenue Next 3Y5.26%
Revenue Next 5Y7.9%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LSI Yearly Revenue VS EstimatesLSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
LSI Yearly EPS VS EstimatesLSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4 5

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 30.88, the valuation of LSI can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as LSI.
The average S&P500 Price/Earnings ratio is at 26.68. LSI is around the same levels.
A Price/Forward Earnings ratio of 26.73 indicates a quite expensive valuation of LSI.
LSI's Price/Forward Earnings is on the same level as the industry average.
LSI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 30.88
Fwd PE 26.73
LSI Price Earnings VS Forward Price EarningsLSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LSI is valued a bit more expensive than 76.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 21.93
LSI Per share dataLSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LSI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.8
PEG (5Y)1.39
EPS Next 2Y8.5%
EPS Next 3Y8.37%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.70%, LSI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.67, LSI's dividend is way lower than its industry peers. On top of this 83.33% of the companies listed in the same industry pay a better dividend than LSI!
LSI's Dividend Yield is comparable with the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 2.7%

5.2 History

The dividend of LSI is nicely growing with an annual growth rate of 9.59%!
LSI has been paying a dividend for over 5 years, so it has already some track record.
LSI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.59%
Div Incr Years3
Div Non Decr Years12
LSI Yearly Dividends per shareLSI Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 1 2 3 4

5.3 Sustainability

100.86% of the earnings are spent on dividend by LSI. This is not a sustainable payout ratio.
LSI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP100.86%
EPS Next 2Y8.5%
EPS Next 3Y8.37%
LSI Yearly Income VS Free CF VS DividendLSI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 -500M -1B
LSI Dividend Payout.LSI Dividend Payout, showing the Payout Ratio.LSI Dividend Payout.PayoutRetained Earnings

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LIFE STORAGE INC

NYSE:LSI (7/19/2023, 8:23:04 PM)

After market: 133.7 +0.6 (+0.45%)

133.1

-1.02 (-0.76%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)05-02 2023-05-02/amc
Earnings (Next)08-01 2023-08-01/amc
Inst Owners0%
Inst Owner Change0%
Ins Owners0.78%
Ins Owner Change0%
Market Cap11.33B
Analysts71.43
Price Target143.82 (8.05%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
Yearly Dividend4.16
Dividend Growth(5Y)9.59%
DP100.86%
Div Incr Years3
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.82%
Min EPS beat(2)-7.42%
Max EPS beat(2)1.79%
EPS beat(4)3
Avg EPS beat(4)1.63%
Min EPS beat(4)-7.42%
Max EPS beat(4)8.14%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.31%
Min Revenue beat(2)0.96%
Max Revenue beat(2)5.66%
Revenue beat(4)4
Avg Revenue beat(4)3.45%
Min Revenue beat(4)0.96%
Max Revenue beat(4)5.66%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.16%
PT rev (3m)0.95%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)-2.31%
EPS NY rev (3m)-2.31%
Revenue NQ rev (1m)-4.94%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-6.28%
Revenue NY rev (3m)-6.28%
Valuation
Industry RankSector Rank
PE 30.88
Fwd PE 26.73
P/S 10.5
P/FCF N/A
P/OCF 18.8
P/B 3.18
P/tB 3.19
EV/EBITDA 21.93
EPS(TTM)4.31
EY3.24%
EPS(NY)4.98
Fwd EY3.74%
FCF(TTM)-1.3
FCFYN/A
OCF(TTM)7.08
OCFY5.32%
SpS12.67
BVpS41.9
TBVpS41.68
PEG (NY)4.8
PEG (5Y)1.39
Profitability
Industry RankSector Rank
ROA 4.96%
ROE 10.27%
ROCE N/A
ROIC 5.2%
ROICexc 5.22%
ROICexgc 5.24%
OM 44.13%
PM (TTM) 33.96%
GM 73.35%
FCFM N/A
ROA(3y)3.95%
ROA(5y)4.66%
ROE(3y)7.88%
ROE(5y)9.16%
ROIC(3y)4.37%
ROIC(5y)4.38%
ROICexc(3y)4.42%
ROICexc(5y)4.43%
ROICexgc(3y)4.45%
ROICexgc(5y)4.45%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y5.05%
ROICexcg growth 5Y6.86%
ROICexc growth 3Y5.13%
ROICexc growth 5Y6.9%
OM growth 3Y4.08%
OM growth 5Y6.35%
PM growth 3Y-8.49%
PM growth 5Y13.65%
GM growth 3Y3.43%
GM growth 5Y2.08%
F-Score6
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF N/A
Debt/EBITDA 5.08
Cap/Depr 366.87%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.5
Quick Ratio 0.5
Altman-Z 2.07
F-Score6
WACC7.85%
ROIC/WACC0.66
Cap/Depr(3y)559.87%
Cap/Depr(5y)366.07%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.02%
EPS 3Y23.24%
EPS 5Y22.29%
EPS Q2Q%9.09%
EPS Next Y6.43%
EPS Next 2Y8.5%
EPS Next 3Y8.37%
EPS Next 5Y5.56%
Revenue 1Y (TTM)26.83%
Revenue growth 3Y21.79%
Revenue growth 5Y14.4%
Sales Q2Q%17.18%
Revenue Next Year2.51%
Revenue Next 2Y3.8%
Revenue Next 3Y5.26%
Revenue Next 5Y7.9%
EBIT growth 1Y30.73%
EBIT growth 3Y26.76%
EBIT growth 5Y21.66%
EBIT Next Year56.6%
EBIT Next 3Y22.08%
EBIT Next 5Y20.96%
FCF growth 1Y-141.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y87.63%
OCF growth 3Y28.16%
OCF growth 5Y18.74%