PUBLIC STORAGE (PSA)
US74460D1090 - REIT
Overall PSA gets a fundamental rating of 6 out of 10. We evaluated PSA against 28 industry peers in the Specialized REITs industry. While PSA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PSA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PSA was profitable.
PSA had a positive operating cash flow in the past year.
In the past 5 years PSA has always been profitable.
Each year in the past 5 years PSA had a positive operating cash flow.
1.2 Ratios
PSA has a Return On Assets of 9.84%. This is amongst the best in the industry. PSA outperforms 100.00% of its industry peers.
PSA's Return On Equity of 19.46% is amongst the best of the industry. PSA outperforms 85.71% of its industry peers.
The Return On Invested Capital of PSA (9.55%) is better than 89.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PSA is above the industry average of 5.21%.
The last Return On Invested Capital (9.55%) for PSA is above the 3 year average (9.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.84% | ||
| ROE | 19.46% | ||
| ROIC | 9.55% |
ROA(3y)14.47%
ROA(5y)12.78%
ROE(3y)26.38%
ROE(5y)21.2%
ROIC(3y)9.1%
ROIC(5y)9.55%
1.3 Margins
PSA has a better Profit Margin (43.14%) than 89.29% of its industry peers.
PSA's Profit Margin has declined in the last couple of years.
PSA has a Operating Margin of 51.41%. This is in the better half of the industry: PSA outperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of PSA has remained more or less at the same level.
PSA's Gross Margin of 74.59% is fine compared to the rest of the industry. PSA outperforms 60.71% of its industry peers.
PSA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.41% | ||
| PM (TTM) | 43.14% | ||
| GM | 74.59% |
OM growth 3Y1.78%
OM growth 5Y-0.05%
PM growth 3Y4.61%
PM growth 5Y-4.38%
GM growth 3Y2.02%
GM growth 5Y0.55%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PSA is creating some value.
Compared to 1 year ago, PSA has more shares outstanding
PSA has more shares outstanding than it did 5 years ago.
PSA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.76 indicates that PSA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.76, PSA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PSA has a debt to FCF ratio of 4.67. This is a neutral value as PSA would need 4.67 years to pay back of all of its debts.
PSA's Debt to FCF ratio of 4.67 is amongst the best of the industry. PSA outperforms 96.43% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that PSA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, PSA is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.67 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.2
WACC7.93%
2.3 Liquidity
PSA has a Current Ratio of 0.62. This is a bad value and indicates that PSA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.62, PSA is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that PSA may have some problems paying its short term obligations.
PSA has a worse Quick ratio (0.62) than 60.71% of its industry peers.
The current and quick ratio evaluation for PSA is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
PSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.13%, which is quite impressive.
The Earnings Per Share has been growing by 8.06% on average over the past years. This is quite good.
PSA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.02%.
The Revenue has been growing by 10.36% on average over the past years. This is quite good.
EPS 1Y (TTM)36.13%
EPS 3Y21.63%
EPS 5Y8.06%
EPS Q2Q%52.08%
Revenue 1Y (TTM)8.02%
Revenue growth 3Y15.72%
Revenue growth 5Y10.36%
Sales Q2Q%5.76%
3.2 Future
PSA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.39% yearly.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y-5.55%
EPS Next 2Y4.29%
EPS Next 3Y1.06%
EPS Next 5Y3.39%
Revenue Next Year3.54%
Revenue Next 2Y2.89%
Revenue Next 3Y4.66%
Revenue Next 5Y4.83%
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
Based on the Price/Earnings ratio of 19.33, the valuation of PSA can be described as rather expensive.
PSA's Price/Earnings ratio is rather cheap when compared to the industry. PSA is cheaper than 85.71% of the companies in the same industry.
PSA is valuated rather cheaply when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
PSA is valuated rather expensively with a Price/Forward Earnings ratio of 24.47.
PSA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PSA is cheaper than 67.86% of the companies in the same industry.
PSA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 24.47 |
4.2 Price Multiples
PSA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PSA is valued a bit cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.13 | ||
| EV/EBITDA | 18.39 |
4.3 Compensation for Growth
PSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.4
EPS Next 2Y4.29%
EPS Next 3Y1.06%
5. Dividend
5.1 Amount
PSA has a Yearly Dividend Yield of 3.95%.
Compared to an average industry Dividend Yield of 4.65, PSA has a dividend in line with its industry peers.
PSA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
5.2 History
PSA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PSA pays out 118.33% of its income as dividend. This is not a sustainable payout ratio.
DP118.33%
EPS Next 2Y4.29%
EPS Next 3Y1.06%
PUBLIC STORAGE
NYSE:PSA (7/26/2024, 7:04:00 PM)
After market: 300.74 0 (0%)300.74
+5.82 (+1.97%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
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Market Cap52.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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EPS NY rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 24.47 | ||
| 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)N/A
PEG (5Y)2.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.84% | ||
| ROE | 19.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 51.41% | ||
| PM (TTM) | 43.14% | ||
| GM | 74.59% | ||
| 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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)36.13%
EPS 3Y21.63%
EPS 5Y
EPS Q2Q%
EPS Next Y-5.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.02%
Revenue growth 3Y15.72%
Revenue growth 5Y
Sales 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