PUBLIC STORAGE (PSA) Stock Fundamental Analysis
USA - NYSE:PSA - US74460D1090 - REIT
294.42 USD
+0.41 (+0.14%)
294.42 USD
0 (0%)
Overall PSA gets a fundamental rating of 4 out of 10. We evaluated PSA against 29 industry peers in the Specialized REITs industry. PSA has an excellent profitability rating, but there are some minor concerns on its financial health. PSA has a expensive valuation and it also scores bad on growth.
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.
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
PSA has a Return On Assets of 7.85%. This is amongst the best in the industry. PSA outperforms 89.66% of its industry peers.
PSA's Return On Equity of 17.20% is amongst the best of the industry. PSA outperforms 89.66% 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 93.10% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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 79.31% of its industry peers.
In the last couple of years the Profit Margin of PSA has declined.
PSA has a better Operating Margin (46.96%) than 79.31% of its industry peers.
PSA's Operating Margin has declined in the last couple of years.
The Gross Margin of PSA (73.00%) 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.
Compared to 5 years ago, PSA has more shares outstanding
The debt/assets ratio for PSA is higher compared to a year ago.
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.
PSA has a Altman-Z score of 3.27. This is amongst the best in 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.
PSA's Debt to FCF ratio of 5.31 is amongst the best of the industry. PSA outperforms 93.10% 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.
With a Debt to Equity ratio value of 1.04, PSA perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 3.27 |
ROIC/WACC1.17
WACC7.8%
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.
With a Quick ratio value of 0.84, PSA perfoms like the industry average, outperforming 58.62% 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.
The Earnings Per Share has been growing slightly by 7.84% on average over the past years.
Looking at the last year, PSA shows a small growth in Revenue. The Revenue has grown by 2.49% in the last year.
PSA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.46% yearly.
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
PSA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.90% yearly.
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
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
Based on the Price/Earnings ratio of 32.11, the valuation of PSA can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as PSA.
When comparing the Price/Earnings ratio of PSA to the average of the S&P500 Index (27.02), we can say PSA is valued inline with the index average.
The Price/Forward Earnings ratio is 27.92, which means the current valuation is very expensive for PSA.
PSA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PSA is cheaper than 65.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PSA to the average of the S&P500 Index (22.57), we can say PSA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.11 | ||
| Fwd PE | 27.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSA.
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 | 26.3 | ||
| EV/EBITDA | 18.14 |
4.3 Compensation for Growth
The decent profitability rating of PSA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.1
EPS Next 2Y-0.41%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, PSA is a good candidate for dividend investing.
PSA's Dividend Yield is slightly below the industry average, which is at 6.05.
Compared to an average S&P500 Dividend Yield of 2.44, PSA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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.
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%
294.42
+0.41 (+0.14%)
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 Change0%
Ins Owners10.1%
Ins Owner Change0.17%
Market Cap51.66B
Analysts75.83
Price Target332.22 (12.84%)
Short Float %1.83%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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)-1.23%
PT rev (3m)-3.35%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)-10.93%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.11 | ||
| Fwd PE | 27.92 | ||
| P/S | 10.88 | ||
| P/FCF | 26.3 | ||
| P/OCF | 16.42 | ||
| P/B | 5.51 | ||
| P/tB | 5.66 | ||
| EV/EBITDA | 18.14 |
EPS(TTM)9.17
EY3.11%
EPS(NY)10.54
Fwd EY3.58%
FCF(TTM)11.2
FCFY3.8%
OCF(TTM)17.93
OCFY6.09%
SpS27.07
BVpS53.42
TBVpS51.97
PEG (NY)N/A
PEG (5Y)4.1
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
WACC7.8%
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)-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%