PUBLIC STORAGE (PSA) Stock Fundamental Analysis
NYSE:PSA - New York Stock Exchange, Inc. - US74460D1090 - REIT - Currency: USD
PSA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
PSA had positive earnings in the past year.
In the past year PSA had a positive cash flow from operations.
Each year in the past 5 years PSA has been profitable.
PSA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.03%, PSA belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
PSA has a better Return On Equity (18.52%) than 90.00% of its industry peers.
PSA has a Return On Invested Capital of 9.51%. This is amongst the best in the industry. PSA outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PSA is above the industry average of 5.28%.
| 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
PSA has a Profit Margin of 37.52%. This is amongst the best in the industry. PSA outperforms 86.67% of its industry peers.
In the last couple of years the Profit Margin of PSA has declined.
PSA's Operating Margin of 46.98% is fine compared to the rest of the industry. PSA outperforms 76.67% of its industry peers.
PSA's Operating Margin has declined in the last couple of years.
PSA's Gross Margin of 73.20% is in line compared to the rest of the industry. PSA outperforms 56.67% of its industry peers.
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
PSA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PSA has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PSA has more shares outstanding
PSA has a worse debt/assets ratio than last year.
2.2 Solvency
PSA has an Altman-Z score of 3.64. This indicates that PSA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.64, PSA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PSA has a debt to FCF ratio of 4.54. This is a neutral value as PSA would need 4.54 years to pay back of 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.
PSA has a Debt to Equity ratio (0.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.17
WACC8.14%
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.
PSA has a Quick 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.
The Quick ratio of PSA (0.24) is worse than 83.33% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 7.84% on average over the past years.
PSA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
The Revenue has been growing by 10.46% on average over the past years. This is quite good.
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 4.33% on average over the next years.
PSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y-4.57%
EPS Next 2Y0.15%
EPS Next 3Y4.89%
EPS Next 5Y4.33%
Revenue Next Year1.77%
Revenue Next 2Y2.9%
Revenue Next 3Y3.8%
Revenue Next 5Y4.67%
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
A Price/Earnings ratio of 30.08 indicates a quite expensive valuation of PSA.
66.67% of the companies in the same industry are more expensive than PSA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.52, PSA is valued at the same level.
A Price/Forward Earnings ratio of 28.41 indicates a quite expensive valuation of PSA.
Based on the Price/Forward Earnings ratio, PSA is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PSA to the average of the S&P500 Index (22.25), we can say PSA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.08 | ||
| Fwd PE | 28.41 |
4.2 Price Multiples
PSA's Enterprise Value to EBITDA is on the same level as the industry average.
PSA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.59 | ||
| EV/EBITDA | 18.49 |
4.3 Compensation for Growth
The decent profitability rating of PSA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.84
EPS Next 2Y0.15%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.99%, PSA has a reasonable but not impressive dividend return.
PSA's Dividend Yield is slightly below the industry average, which is at 5.62.
Compared to an average S&P500 Dividend Yield of 2.39, PSA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
5.2 History
On average, the dividend of PSA grows each year by 7.24%, which is quite nice.
PSA has paid a dividend for at least 10 years, which is 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
PSA pays out 129.87% of its income as dividend. This is not a sustainable payout ratio.
PSA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP129.87%
EPS Next 2Y0.15%
EPS Next 3Y4.89%
302.91
+2.45 (+0.82%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners82.55%
Inst Owner Change-0.39%
Ins Owners10.11%
Ins Owner Change-0.18%
Market Cap53.14B
Analysts77.5
Price Target343.74 (13.48%)
Short Float %1.85%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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)0.2%
PT rev (3m)-3.31%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-3.6%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-4.62%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.08 | ||
| Fwd PE | 28.41 | ||
| P/S | 11.25 | ||
| P/FCF | 25.59 | ||
| P/OCF | 16.78 | ||
| P/B | 5.55 | ||
| P/tB | 5.71 | ||
| EV/EBITDA | 18.49 |
EPS(TTM)10.07
EY3.32%
EPS(NY)10.66
Fwd EY3.52%
FCF(TTM)11.84
FCFY3.91%
OCF(TTM)18.06
OCFY5.96%
SpS26.91
BVpS54.53
TBVpS53.03
PEG (NY)N/A
PEG (5Y)3.84
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 | 3.64 |
F-Score6
WACC8.14%
ROIC/WACC1.17
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-4.57%
EPS Next 2Y0.15%
EPS Next 3Y4.89%
EPS Next 5Y4.33%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y11.19%
Revenue growth 5Y10.46%
Sales Q2Q%2.24%
Revenue Next Year1.77%
Revenue Next 2Y2.9%
Revenue Next 3Y3.8%
Revenue Next 5Y4.67%
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%