PUBLIC STORAGE (PSA) Stock Fundamental Analysis
NYSE:PSA - US74460D1090 - REIT
293.71 USD
+6.95 (+2.42%)
293.71 USD
0 (0%)
Overall PSA gets a fundamental rating of 5 out of 10. We evaluated PSA against 30 industry peers in the Specialized REITs industry. PSA has an excellent profitability rating, but there are some minor concerns on its financial health. PSA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PSA had positive earnings in the past year.
PSA had a positive operating cash flow in the past year.
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's Return On Assets of 7.85% is amongst the best of the industry. PSA outperforms 90.00% of its industry peers.
Looking at the Return On Equity, with a value of 17.20%, PSA belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
PSA has a better Return On Invested Capital (9.16%) than 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 5.07%.
| 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
With a decent Profit Margin value of 33.95%, PSA is doing good in the industry, outperforming 80.00% of the companies in the same industry.
PSA's Profit Margin has declined in the last couple of years.
PSA has a better Operating Margin (46.96%) than 76.67% of its industry peers.
PSA's Operating Margin has declined in the last couple of years.
PSA has a Gross Margin of 73.00%. This is comparable 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 | 46.96% | ||
| 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.
The number of shares outstanding for PSA remains at a similar level compared to 1 year ago.
The number of shares outstanding for PSA has been increased compared to 5 years ago.
Compared to 1 year ago, PSA has a worse debt to assets ratio.
2.2 Solvency
PSA has an Altman-Z score of 3.27. This indicates that PSA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.27, 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 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.
Looking at the Debt to FCF ratio, with a value of 5.31, PSA belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
A Debt/Equity ratio of 1.04 is on the high side and indicates that PSA has dependencies on debt financing.
PSA has a Debt to Equity ratio (1.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 3.27 |
ROIC/WACC1.16
WACC7.9%
2.3 Liquidity
A Current Ratio of 0.84 indicates that PSA may have some problems paying its short term obligations.
PSA has a Current ratio (0.84) which is in line with its industry peers.
A Quick Ratio of 0.84 indicates that PSA may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, PSA perfoms like the industry average, 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
PSA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.06%.
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.
Looking at the last year, PSA shows a small growth in Revenue. The Revenue has grown by 2.49% in the last 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
Based on estimates for the next years, PSA will show a small growth in Earnings Per Share. The EPS will grow by 3.86% on average per year.
PSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.61% yearly.
EPS Next Y1.95%
EPS Next 2Y2.97%
EPS Next 3Y4.89%
EPS Next 5Y3.86%
Revenue Next Year2.02%
Revenue Next 2Y2.88%
Revenue Next 3Y3.68%
Revenue Next 5Y4.61%
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
A Price/Earnings ratio of 32.03 indicates a quite expensive valuation of PSA.
Compared to the rest of the industry, the Price/Earnings ratio of PSA is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.24, PSA is valued at the same level.
A Price/Forward Earnings ratio of 26.06 indicates a quite expensive valuation of PSA.
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 22.81. PSA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.03 | ||
| Fwd PE | 26.06 |
4.2 Price Multiples
63.33% of the companies in the same industry are more expensive than PSA, based on the Enterprise Value to EBITDA ratio.
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 | 26.23 | ||
| EV/EBITDA | 18.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PSA does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PSA may justify a higher PE ratio.
PEG (NY)16.42
PEG (5Y)4.09
EPS Next 2Y2.97%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.18%, PSA is a good candidate for dividend investing.
PSA's Dividend Yield is slightly below the industry average, which is at 6.02.
Compared to an average S&P500 Dividend Yield of 2.34, PSA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
On average, the dividend of PSA grows each year by 7.24%, which is quite nice.
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
PSA pays out 142.79% of its income as dividend. 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.
DP142.79%
EPS Next 2Y2.97%
EPS Next 3Y4.89%
293.71
+6.95 (+2.42%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners82.4%
Inst Owner Change-3.69%
Ins Owners10.1%
Ins Owner Change0.09%
Market Cap51.53B
Analysts76.8
Price Target336.36 (14.52%)
Short Float %1.83%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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)-2.16%
PT rev (3m)-0.12%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-4.07%
EPS NY rev (1m)8.95%
EPS NY rev (3m)6.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.03 | ||
| Fwd PE | 26.06 | ||
| P/S | 10.85 | ||
| P/FCF | 26.23 | ||
| P/OCF | 16.38 | ||
| P/B | 5.5 | ||
| P/tB | 5.65 | ||
| EV/EBITDA | 18.13 |
EPS(TTM)9.17
EY3.12%
EPS(NY)11.27
Fwd EY3.84%
FCF(TTM)11.2
FCFY3.81%
OCF(TTM)17.93
OCFY6.1%
SpS27.07
BVpS53.42
TBVpS51.97
PEG (NY)16.42
PEG (5Y)4.09
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%
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-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 | 3.27 |
F-Score4
WACC7.9%
ROIC/WACC1.16
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 Y1.95%
EPS Next 2Y2.97%
EPS Next 3Y4.89%
EPS Next 5Y3.86%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y11.19%
Revenue growth 5Y10.46%
Sales Q2Q%2.38%
Revenue Next Year2.02%
Revenue Next 2Y2.88%
Revenue Next 3Y3.68%
Revenue Next 5Y4.61%
EBIT growth 1Y-1.19%
EBIT growth 3Y9.28%
EBIT growth 5Y8.34%
EBIT Next Year42.58%
EBIT Next 3Y15.89%
EBIT Next 5Y10.8%
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%