LIFE STORAGE INC (LSI) Stock Fundamental Analysis
NYSE:LSI - New York Stock Exchange, Inc. - US53223X1072 - REIT - Currency: USD
Overall LSI gets a fundamental rating of 4 out of 10. We evaluated LSI against 30 industry peers in the Specialized REITs industry. LSI has an excellent profitability rating, but there are concerns on its financial health. LSI is valied quite expensively at the moment, while 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.
LSI had a positive operating cash flow in each of the past 5 years.
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.
The Return On Equity of LSI (10.27%) is better than 66.67% of its industry peers.
With a Return On Invested Capital value of 5.20%, LSI perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LSI is in line with the industry average of 5.28%.
The 3 year average ROIC (4.37%) for LSI is below the current ROIC(5.20%), indicating increased profibility in the last year.
| 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 Profit Margin of 33.96%. This is in the better half of the industry: LSI outperforms 76.67% of its industry peers.
LSI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 44.13%, LSI is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
LSI's Operating Margin has improved in the last couple of years.
The Gross Margin of LSI (73.35%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of LSI has grown nicely.
| 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
LSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LSI has more shares outstanding than it did 1 year ago.
The debt/assets ratio for LSI is higher compared to a year ago.
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.
With an excellent Altman-Z score value of 2.07, LSI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
LSI has a Debt/Equity ratio of 0.95. This is a neutral value indicating LSI is somewhat dependend on debt financing.
LSI has a Debt to Equity ratio (0.95) which is in line with its industry peers.
| 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's Current ratio of 0.50 is on the low side compared to the rest of the industry. LSI is outperformed by 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
The Earnings Per Share has grown by an impressive 26.02% over the past year.
Measured over the past years, LSI shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.29% on average per year.
LSI shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.83%.
The Revenue has been growing by 14.40% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 7.90% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.88, LSI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of LSI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.69, LSI is valued at the same level.
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 valuation a bit cheaper than the S&P500 average which is at 37.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 26.73 |
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 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 an expensive valuation of the company.
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.
Compared to an average industry Dividend Yield of 5.63, 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!
Compared to an average S&P500 Dividend Yield of 2.34, LSI has a dividend comparable with the average S&P500 company.
| 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
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
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
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 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%