LIFE STORAGE INC (LSI) Stock Fundamental Analysis
USA - NYSE:LSI - US53223X1072 - REIT
133.1 USD
-1.02 (-0.76%)
133.7 USD
+0.6 (+0.45%)
We assign a fundamental rating of 4 out of 10 to LSI. LSI was compared to 30 industry peers in the Specialized REITs industry. LSI has an excellent profitability rating, but there are concerns on its financial health. LSI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LSI was profitable.
In the past year LSI had a positive cash flow from operations.
LSI had positive earnings in each of the past 5 years.
Each year in the past 5 years LSI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.96%, LSI is doing good in the industry, outperforming 73.33% of the companies in the same industry.
LSI has a better Return On Equity (10.27%) than 66.67% of its industry peers.
LSI has a Return On Invested Capital of 5.20%. This is comparable to the rest of the industry: LSI outperforms 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LSI is in line with the industry average of 4.81%.
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 Rank | Sector 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%
1.3 Margins
LSI has a better Profit Margin (33.96%) than 76.67% of its industry peers.
LSI's Profit Margin has improved in the last couple of years.
LSI has a better Operating Margin (44.13%) than 76.67% of its industry peers.
In the last couple of years the Operating Margin of LSI has grown nicely.
With a Gross Margin value of 73.35%, LSI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
LSI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LSI is destroying value.
Compared to 1 year ago, LSI has more shares outstanding
LSI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.07 indicates that LSI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.07, LSI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.95 indicates that LSI is somewhat dependend on debt financing.
LSI has a Debt to Equity ratio (0.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.07 |
ROIC/WACC0.66
WACC7.85%
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.
Looking at the Quick ratio, with a value of 0.50, LSI is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
LSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.02%, which is quite impressive.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
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.
LSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
LSI is valuated quite expensively with a Price/Forward Earnings ratio of 26.73.
LSI's Price/Forward Earnings ratio is in line with the industry average.
LSI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 26.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LSI indicates a slightly more expensive valuation: LSI is more expensive than 76.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LSI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LSI may justify a higher PE ratio.
PEG (NY)4.8
PEG (5Y)1.39
EPS Next 2Y8.5%
EPS Next 3Y8.37%
5. Dividend
5.1 Amount
LSI has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.70, LSI pays less dividend than the industry average, which is at 6.28. 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
On average, the dividend of LSI grows each year by 9.59%, which is quite nice.
LSI has been paying a dividend for over 5 years, so it has already some track record.
LSI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.59%
Div Incr Years3
Div Non Decr Years12
5.3 Sustainability
LSI pays out 100.86% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LSI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP100.86%
EPS Next 2Y8.5%
EPS Next 3Y8.37%
133.1
-1.02 (-0.76%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners0.78%
Ins Owner Change0%
Market Cap11.33B
Revenue(TTM)1.08B
Net Income(TTM)366.16M
Analysts71.43
Price Target143.82 (8.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Graham NumberN/A
Profitability
| Industry Rank | Sector 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
ROICexgc growth 3Y5.05%
ROICexgc 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 Rank | Sector 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%
LIFE STORAGE INC / LSI FAQ
What is the ChartMill fundamental rating of LIFE STORAGE INC (LSI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to LSI.
What is the valuation status for LSI stock?
ChartMill assigns a valuation rating of 2 / 10 to LIFE STORAGE INC (LSI). This can be considered as Overvalued.
How profitable is LIFE STORAGE INC (LSI) stock?
LIFE STORAGE INC (LSI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for LSI stock?
The Price/Earnings (PE) ratio for LIFE STORAGE INC (LSI) is 30.88 and the Price/Book (PB) ratio is 3.18.
What is the earnings growth outlook for LIFE STORAGE INC?
The Earnings per Share (EPS) of LIFE STORAGE INC (LSI) is expected to grow by 6.43% in the next year.