PUBLIC STORAGE (PSA) Stock Fundamental Analysis
NYSE:PSA - New York Stock Exchange, Inc. - US74460D1090 - REIT - Currency: USD
Taking everything into account, PSA scores 5 out of 10 in our fundamental rating. PSA was compared to 30 industry peers in the Specialized REITs industry. While PSA has a great profitability rating, there are some minor concerns on its financial health. PSA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PSA was profitable.
In the past year PSA had a positive cash flow from operations.
Each year in the past 5 years PSA has been profitable.
In the past 5 years PSA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.03%, PSA belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
PSA's Return On Equity of 18.52% is amongst the best of the industry. PSA outperforms 90.00% of its industry peers.
The Return On Invested Capital of PSA (9.51%) is better than 90.00% of its industry peers.
PSA had an Average Return On Invested Capital over the past 3 years of 9.80%. This is above the industry average of 5.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 18.52% | ||
| ROIC | 9.51% |
ROA(3y)14.31%
ROA(5y)12.44%
ROE(3y)26.62%
ROE(5y)22.25%
ROIC(3y)9.8%
ROIC(5y)9.42%
1.3 Margins
With an excellent Profit Margin value of 37.52%, PSA belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
PSA's Profit Margin has declined in the last couple of years.
PSA has a Operating Margin of 46.98%. This is in the better half of the industry: PSA outperforms 76.67% of its industry peers.
In the last couple of years the Operating Margin of PSA has declined.
The Gross Margin of PSA (73.20%) is comparable to the rest of the industry.
PSA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.98% | ||
| PM (TTM) | 37.52% | ||
| GM | 73.2% |
OM growth 3Y-1.72%
OM growth 5Y-1.92%
PM growth 3Y-7.7%
PM growth 5Y-2.2%
GM growth 3Y0.07%
GM growth 5Y0.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSA is still creating some value.
PSA has about the same amout of shares outstanding than it did 1 year ago.
PSA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PSA is higher compared to a year ago.
2.2 Solvency
PSA has an Altman-Z score of 3.53. This indicates that PSA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.53, PSA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of PSA is 4.54, which is a neutral value as it means it would take PSA, 4.54 years of fcf income to pay off all of its debts.
PSA's Debt to FCF ratio of 4.54 is amongst the best of the industry. PSA outperforms 93.33% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that PSA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, PSA is in line with its industry, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.18
WACC8.03%
2.3 Liquidity
PSA has a Current Ratio of 0.24. This is a bad value and indicates that PSA is not financially healthy enough and could expect problems in meeting its short term obligations.
PSA's Current ratio of 0.24 is on the low side compared to the rest of the industry. PSA is outperformed by 83.33% of its industry peers.
A Quick Ratio of 0.24 indicates that PSA may have some problems paying its short term obligations.
With a Quick ratio value of 0.24, PSA is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
PSA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.54%.
PSA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.84% yearly.
Looking at the last year, PSA shows a small growth in Revenue. The Revenue has grown by 3.08% in the last year.
Measured over the past years, PSA shows a quite strong growth in Revenue. The Revenue has been growing by 10.46% on average per year.
EPS 1Y (TTM)-8.54%
EPS 3Y2.5%
EPS 5Y7.84%
EPS Q2Q%-21.54%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y11.19%
Revenue growth 5Y10.46%
Sales Q2Q%2.24%
3.2 Future
The Earnings Per Share is expected to grow by 4.47% on average over the next years.
The Revenue is expected to grow by 4.71% on average over the next years.
EPS Next Y-6.42%
EPS Next 2Y0.1%
EPS Next 3Y4.89%
EPS Next 5Y4.47%
Revenue Next Year2%
Revenue Next 2Y2.95%
Revenue Next 3Y3.81%
Revenue Next 5Y4.71%
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.
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
A Price/Earnings ratio of 28.71 indicates a quite expensive valuation of PSA.
Based on the Price/Earnings ratio, PSA is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
PSA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 27.15, PSA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSA indicates a somewhat cheap valuation: PSA is cheaper than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. PSA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.71 | ||
| Fwd PE | 27.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSA is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
63.33% of the companies in the same industry are more expensive than PSA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.42 | ||
| EV/EBITDA | 17.89 |
4.3 Compensation for Growth
The decent profitability rating of PSA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.66
EPS Next 2Y0.1%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
PSA has a Yearly Dividend Yield of 4.15%, which is a nice return.
Compared to an average industry Dividend Yield of 5.78, PSA is paying slightly less dividend.
PSA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
5.2 History
The dividend of PSA is nicely growing with an annual growth rate of 7.24%!
PSA has been paying a dividend for at least 10 years, so it has a reliable track record.
PSA has decreased its dividend recently.
Dividend Growth(5Y)7.24%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
129.87% of the earnings are spent on dividend by PSA. This is not a sustainable payout ratio.
The dividend of PSA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP129.87%
EPS Next 2Y0.1%
EPS Next 3Y4.89%
289.13
+0.29 (+0.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners82.01%
Inst Owner Change0%
Ins Owners10.1%
Ins Owner Change-0.12%
Market Cap50.72B
Analysts76.8
Price Target343.74 (18.89%)
Short Float %1.93%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend13.11
Dividend Growth(5Y)7.24%
DP129.87%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.03%
Min EPS beat(2)-15.67%
Max EPS beat(2)23.73%
EPS beat(4)2
Avg EPS beat(4)-2.13%
Min EPS beat(4)-17.82%
Max EPS beat(4)23.73%
EPS beat(8)5
Avg EPS beat(8)-1.14%
EPS beat(12)7
Avg EPS beat(12)1.5%
EPS beat(16)11
Avg EPS beat(16)6.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-1.49%
Max Revenue beat(4)0.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.57%
Revenue beat(12)5
Avg Revenue beat(12)-0.27%
Revenue beat(16)8
Avg Revenue beat(16)0.12%
PT rev (1m)0%
PT rev (3m)0.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)-1.94%
EPS NY rev (3m)-2.61%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.71 | ||
| Fwd PE | 27.15 | ||
| P/S | 10.74 | ||
| P/FCF | 24.42 | ||
| P/OCF | 16.01 | ||
| P/B | 5.3 | ||
| P/tB | 5.45 | ||
| EV/EBITDA | 17.89 |
EPS(TTM)10.07
EY3.48%
EPS(NY)10.65
Fwd EY3.68%
FCF(TTM)11.84
FCFY4.09%
OCF(TTM)18.06
OCFY6.25%
SpS26.91
BVpS54.53
TBVpS53.03
PEG (NY)N/A
PEG (5Y)3.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 18.52% | ||
| ROCE | 12.04% | ||
| ROIC | 9.51% | ||
| ROICexc | 9.66% | ||
| ROICexgc | 9.96% | ||
| OM | 46.98% | ||
| PM (TTM) | 37.52% | ||
| GM | 73.2% | ||
| FCFM | 43.99% |
ROA(3y)14.31%
ROA(5y)12.44%
ROE(3y)26.62%
ROE(5y)22.25%
ROIC(3y)9.8%
ROIC(5y)9.42%
ROICexc(3y)10.11%
ROICexc(5y)9.73%
ROICexgc(3y)10.44%
ROICexgc(5y)10.05%
ROCE(3y)12.41%
ROCE(5y)11.93%
ROICexcg growth 3Y5.29%
ROICexcg growth 5Y-2.76%
ROICexc growth 3Y5.3%
ROICexc growth 5Y-2.67%
OM growth 3Y-1.72%
OM growth 5Y-1.92%
PM growth 3Y-7.7%
PM growth 5Y-2.2%
GM growth 3Y0.07%
GM growth 5Y0.47%
F-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 96.77% | ||
| Cap/Sales | 23.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.68% | ||
| Profit Quality | 117.23% | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 3.53 |
F-Score6
WACC8.03%
ROIC/WACC1.18
Cap/Depr(3y)132.03%
Cap/Depr(5y)277.82%
Cap/Sales(3y)28.99%
Cap/Sales(5y)58.08%
Profit Quality(3y)83.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.54%
EPS 3Y2.5%
EPS 5Y7.84%
EPS Q2Q%-21.54%
EPS Next Y-6.42%
EPS Next 2Y0.1%
EPS Next 3Y4.89%
EPS Next 5Y4.47%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y11.19%
Revenue growth 5Y10.46%
Sales Q2Q%2.24%
Revenue Next Year2%
Revenue Next 2Y2.95%
Revenue Next 3Y3.81%
Revenue Next 5Y4.71%
EBIT growth 1Y-3.06%
EBIT growth 3Y9.28%
EBIT growth 5Y8.34%
EBIT Next Year42.54%
EBIT Next 3Y15.94%
EBIT Next 5Y10.8%
FCF growth 1Y21.97%
FCF growth 3YN/A
FCF growth 5Y12.79%
OCF growth 1Y0.31%
OCF growth 3Y7.14%
OCF growth 5Y8.63%