LIFE STORAGE INC (LSI)
US53223X1072 - REIT
Overall LSI gets a fundamental rating of 4 out of 10. We evaluated LSI against 28 industry peers in the Specialized REITs industry. LSI has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, LSI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
LSI had positive earnings in the past year.
LSI had a positive operating cash flow in the past year.
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
The Return On Assets of LSI (4.96%) is better than 73.33% of its industry peers.
The Return On Equity of LSI (10.27%) is better than 66.67% of its industry peers.
The Return On Invested Capital of LSI (5.20%) is comparable to the rest of the industry.
LSI had an Average Return On Invested Capital over the past 3 years of 4.37%. This is in line with the industry average of 5.08%.
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
With a decent Profit Margin value of 33.96%, LSI is doing good in the industry, outperforming 76.67% of the companies in the same industry.
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.
LSI has a Gross Margin (73.35%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LSI is destroying value.
LSI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LSI has been increased compared to 5 years ago.
Compared to 1 year ago, LSI has a worse debt to assets ratio.
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.
LSI has a Altman-Z score of 2.07. This is amongst the best in the industry. LSI outperforms 83.33% of its industry peers.
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 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.
Looking at the Current ratio, with a value of 0.50, LSI is doing worse than 70.00% of the companies in the same industry.
LSI has a Quick 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 Quick 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.
| 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.
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.
Looking at the last year, LSI shows a very strong growth in Revenue. 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 growth Q2Q9.09%
Revenue 1Y (TTM)26.83%
Revenue growth 3Y21.79%
Revenue growth 5Y14.4%
Revenue growth Q2Q17.18%
3.2 Future
The Earnings Per Share is expected to grow by 5.56% on average over the next years.
LSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.90% yearly.
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
LSI is valuated quite expensively with a Price/Earnings ratio of 30.88.
LSI's Price/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/Earnings ratio to 28.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.73, LSI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LSI is on the same level as its industry peers.
LSI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.47.
| 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 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
With a Yearly Dividend Yield of 2.70%, LSI has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.70, LSI pays less dividend than the industry average, which is at 4.94. 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 2.34.
| Industry Rank | Sector 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
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%
LIFE STORAGE INC
NYSE:LSI (7/19/2023, 7:23:04 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 26.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.8
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 10.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 44.13% | ||
| PM (TTM) | 33.96% | ||
| GM | 73.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)26.02%
EPS 3Y23.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.83%
Revenue growth 3Y21.79%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y