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. PSA has an excellent profitability rating, but 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.
Each year in the past 5 years PSA has been profitable.
Each year in the past 5 years PSA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.84%, PSA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of PSA (19.46%) is better than 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.55%, PSA belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
PSA had an Average Return On Invested Capital over the past 3 years of 9.10%. This is above the industry average of 5.04%.
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.
In the last couple of years the Profit Margin of PSA has declined.
With an excellent Operating Margin value of 51.41%, PSA belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
In the last couple of years the Operating Margin of PSA has remained more or less at the same level.
PSA has a Gross Margin of 74.59%. This is in the better half of the industry: PSA outperforms 60.71% of its industry peers.
In the last couple of years the Gross Margin of PSA has remained more or less at the same level.
| 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.
PSA has more shares outstanding than it did 1 year ago.
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 3.38. This indicates that PSA is financially healthy and has little risk of bankruptcy at the moment.
PSA's Altman-Z score of 3.38 is amongst the best of the industry. PSA outperforms 100.00% of its industry peers.
The Debt to FCF ratio of PSA is 4.67, which is a neutral value as it means it would take PSA, 4.67 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PSA (4.67) is better than 96.43% of its industry peers.
PSA has a Debt/Equity ratio of 0.91. This is a neutral value indicating PSA is somewhat dependend on debt financing.
PSA has a Debt to Equity ratio (0.91) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.67 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.13
WACC8.43%
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.
PSA's Current ratio of 0.62 is on the low side compared to the rest of the industry. PSA is outperformed by 60.71% of its industry peers.
PSA has a Quick 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.
PSA has a Quick ratio of 0.62. This is comparable to the rest of the industry: PSA outperforms 42.86% of its industry peers.
PSA does not score too well on the current and quick ratio evaluation. However, as it has 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
The Earnings Per Share has grown by an impressive 24.28% over the past year.
Measured over the past years, PSA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.06% on average per year.
Looking at the last year, PSA shows a quite strong growth in Revenue. The Revenue has grown by 8.02% in the last year.
The Revenue has been growing by 10.36% on average over the past years. This is quite good.
EPS 1Y (TTM)24.28%
EPS 3Y21.63%
EPS 5Y8.06%
EPS growth Q2Q103.88%
Revenue 1Y (TTM)8.02%
Revenue growth 3Y15.72%
Revenue growth 5Y10.36%
Revenue growth Q2Q6.55%
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 4.04% on average per year.
The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y-7.16%
EPS Next 2Y4.29%
EPS Next 3Y2.89%
EPS Next 5Y4.04%
Revenue Next Year3.76%
Revenue Next 2Y2.89%
Revenue Next 3Y4.6%
Revenue Next 5Y4.74%
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
PSA is valuated rather expensively with a Price/Earnings ratio of 18.37.
82.14% of the companies in the same industry are more expensive than PSA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PSA to the average of the S&P500 Index (24.75), we can say PSA is valued slightly cheaper.
PSA is valuated rather expensively with a Price/Forward Earnings ratio of 24.83.
Based on the Price/Forward Earnings ratio, PSA is valued a bit cheaper than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.23, PSA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 24.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSA.
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 | 23.5 | ||
| EV/EBITDA | 16.55 |
4.3 Compensation for Growth
PSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.28
EPS Next 2Y4.29%
EPS Next 3Y2.89%
5. Dividend
5.1 Amount
PSA has a Yearly Dividend Yield of 4.61%, which is a nice return.
PSA's Dividend Yield is comparable with the industry average which is at 5.04.
PSA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
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 3Y2.89%
PUBLIC STORAGE
NYSE:PSA (4/22/2024, 2:46:00 PM)
260.48
+0.1 (+0.04%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap45.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 24.83 | ||
| 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)2.28
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)
Growth
EPS 1Y (TTM)24.28%
EPS 3Y21.63%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.02%
Revenue growth 3Y15.72%
Revenue growth 5Y
Revenue growth 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