PUBLIC STORAGE (PSA) Stock Fundamental Analysis
USA - NYSE:PSA - US74460D1090 - REIT
302.24 USD
-4.04 (-1.32%)
302.24 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PSA. PSA was compared to 30 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 is valued expensive and 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.
PSA had positive earnings in each of the past 5 years.
Each year in the past 5 years PSA had a positive operating cash flow.
1.2 Ratios
PSA has a Return On Assets of 7.85%. This is amongst the best in the industry. PSA outperforms 90.00% of its industry peers.
PSA has a better Return On Equity (17.20%) than 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.16%, PSA belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PSA is significantly above the industry average of 4.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 17.2% | ||
| ROIC | 9.16% |
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's Profit Margin of 33.95% is fine compared to the rest of the industry. PSA outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of PSA has declined.
Looking at the Operating Margin, with a value of 46.96%, PSA is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of PSA has declined.
PSA has a Gross Margin (73.00%) which 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 | 46.96% | ||
| PM (TTM) | 33.95% | ||
| GM | 73% |
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
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 about the same amount of shares outstanding.
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 3.39. This indicates that PSA is financially healthy and has little risk of bankruptcy at the moment.
PSA's Altman-Z score of 3.39 is amongst the best of the industry. PSA outperforms 100.00% of its industry peers.
The Debt to FCF ratio of PSA is 5.31, which is a neutral value as it means it would take PSA, 5.31 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PSA (5.31) is better than 93.33% of its industry peers.
PSA has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.04, PSA is in line with its industry, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 3.39 |
ROIC/WACC1.19
WACC7.72%
2.3 Liquidity
PSA has a Current Ratio of 0.84. 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 Current ratio of PSA (0.84) is comparable to the rest of the industry.
PSA has a Quick Ratio of 0.84. This is a bad value and indicates that PSA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.84, PSA is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for PSA have decreased strongly by -14.06% in the last year.
Measured over the past 5 years, PSA shows a small growth in Earnings Per Share. The EPS has been growing by 7.84% on average per year.
The Revenue has been growing slightly by 2.49% in the past year.
The Revenue has been growing by 10.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.06%
EPS 3Y2.5%
EPS 5Y7.84%
EPS Q2Q%-33.83%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y11.19%
Revenue growth 5Y10.46%
Sales Q2Q%2.38%
3.2 Future
The Earnings Per Share is expected to grow by 3.90% on average over the next years.
The Revenue is expected to grow by 3.32% on average over the next years.
EPS Next Y-9.19%
EPS Next 2Y-0.41%
EPS Next 3Y4.89%
EPS Next 5Y3.9%
Revenue Next Year1.98%
Revenue Next 2Y2.8%
Revenue Next 3Y3.54%
Revenue Next 5Y3.32%
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.
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
The Price/Earnings ratio is 32.96, which means the current valuation is very expensive for PSA.
Compared to the rest of the industry, the Price/Earnings ratio of PSA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.91. PSA is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 28.67, the valuation of PSA can be described as expensive.
Based on the Price/Forward Earnings ratio, PSA is valued a bit cheaper than 66.67% of the companies in the same industry.
PSA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.96 | ||
| Fwd PE | 28.67 |
4.2 Price Multiples
PSA's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.99 | ||
| EV/EBITDA | 18.79 |
4.3 Compensation for Growth
PSA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.21
EPS Next 2Y-0.41%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.92%, PSA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.76, PSA is paying slightly less dividend.
PSA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
5.2 History
The dividend of PSA is nicely growing with an annual growth rate of 7.24%!
PSA has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PSA decreased recently.
Dividend Growth(5Y)7.24%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
PSA pays out 142.79% 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.
DP142.79%
EPS Next 2Y-0.41%
EPS Next 3Y4.89%
302.24
-4.04 (-1.32%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners82.3%
Inst Owner Change-0.05%
Ins Owners10.1%
Ins Owner Change0.17%
Market Cap53.03B
Revenue(TTM)4.75B
Net Income(TTM)1.61B
Analysts75.83
Price Target332.22 (9.92%)
Short Float %1.82%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
Yearly Dividend13.11
Dividend Growth(5Y)7.24%
DP142.79%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.76%
Min EPS beat(2)-31.86%
Max EPS beat(2)-15.67%
EPS beat(4)1
Avg EPS beat(4)-10.41%
Min EPS beat(4)-31.86%
Max EPS beat(4)23.73%
EPS beat(8)4
Avg EPS beat(8)-5.4%
EPS beat(12)6
Avg EPS beat(12)-3.92%
EPS beat(16)10
Avg EPS beat(16)3.76%
Revenue beat(2)2
Avg Revenue beat(2)0.1%
Min Revenue beat(2)0.09%
Max Revenue beat(2)0.1%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)0.1%
Revenue beat(8)3
Avg Revenue beat(8)-0.41%
Revenue beat(12)5
Avg Revenue beat(12)-0.28%
Revenue beat(16)8
Avg Revenue beat(16)-0.03%
PT rev (1m)-0.18%
PT rev (3m)-3.37%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)-10.93%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.96 | ||
| Fwd PE | 28.67 | ||
| P/S | 11.17 | ||
| P/FCF | 26.99 | ||
| P/OCF | 16.86 | ||
| P/B | 5.66 | ||
| P/tB | 5.82 | ||
| EV/EBITDA | 18.79 |
EPS(TTM)9.17
EY3.03%
EPS(NY)10.54
Fwd EY3.49%
FCF(TTM)11.2
FCFY3.7%
OCF(TTM)17.93
OCFY5.93%
SpS27.07
BVpS53.42
TBVpS51.97
PEG (NY)N/A
PEG (5Y)4.21
Graham Number104.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 17.2% | ||
| ROCE | 11.6% | ||
| ROIC | 9.16% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 10.06% | ||
| OM | 46.96% | ||
| PM (TTM) | 33.95% | ||
| GM | 73% | ||
| FCFM | 41.36% |
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%
ROICexgc growth 3Y5.29%
ROICexgc 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-Score4
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.31 | ||
| Debt/EBITDA | 2.91 | ||
| Cap/Depr | 104.75% | ||
| Cap/Sales | 24.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.68% | ||
| Profit Quality | 121.84% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 3.39 |
F-Score4
WACC7.72%
ROIC/WACC1.19
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)-14.06%
EPS 3Y2.5%
EPS 5Y7.84%
EPS Q2Q%-33.83%
EPS Next Y-9.19%
EPS Next 2Y-0.41%
EPS Next 3Y4.89%
EPS Next 5Y3.9%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y11.19%
Revenue growth 5Y10.46%
Sales Q2Q%2.38%
Revenue Next Year1.98%
Revenue Next 2Y2.8%
Revenue Next 3Y3.54%
Revenue Next 5Y3.32%
EBIT growth 1Y-1.19%
EBIT growth 3Y9.28%
EBIT growth 5Y8.34%
EBIT Next Year42.63%
EBIT Next 3Y15.6%
EBIT Next 5Y10.85%
FCF growth 1Y11.53%
FCF growth 3YN/A
FCF growth 5Y12.79%
OCF growth 1Y-3.01%
OCF growth 3Y7.14%
OCF growth 5Y8.63%
PUBLIC STORAGE / PSA FAQ
What is the ChartMill fundamental rating of PUBLIC STORAGE (PSA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to PSA.
Can you provide the valuation status for PUBLIC STORAGE?
ChartMill assigns a valuation rating of 2 / 10 to PUBLIC STORAGE (PSA). This can be considered as Overvalued.
What is the profitability of PSA stock?
PUBLIC STORAGE (PSA) has a profitability rating of 7 / 10.
What is the valuation of PUBLIC STORAGE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PUBLIC STORAGE (PSA) is 32.96 and the Price/Book (PB) ratio is 5.66.
What is the expected EPS growth for PUBLIC STORAGE (PSA) stock?
The Earnings per Share (EPS) of PUBLIC STORAGE (PSA) is expected to decline by -9.19% in the next year.