PUBLIC STORAGE (PSA)

US74460D1090 - REIT

282.24  +0.72 (+0.26%)

Fundamental Rating

6

PSA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 is not valued too expensively and it also shows a decent growth rate.



8

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 4 of the past 5 years.
PSA had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

PSA has a Return On Assets of 9.67%. This is amongst the best in the industry. PSA outperforms 100.00% of its industry peers.
PSA has a better Return On Equity (19.01%) than 89.29% of its industry peers.
The Return On Invested Capital of PSA (9.50%) is better than 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PSA is above the industry average of 4.87%.
The last Return On Invested Capital (9.50%) for PSA is above the 3 year average (9.20%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.67%
ROE 19.01%
ROIC 9.5%
ROA(3y)14.29%
ROA(5y)13.54%
ROE(3y)24.17%
ROE(5y)20.58%
ROIC(3y)9.2%
ROIC(5y)9.77%

1.3 Margins

PSA has a better Profit Margin (43.22%) than 92.86% of its industry peers.
In the last couple of years the Profit Margin of PSA has grown nicely.
PSA has a Operating Margin of 51.99%. This is amongst the best in the industry. PSA outperforms 82.14% of its industry peers.
PSA's Operating Margin has been stable in the last couple of years.
PSA has a Gross Margin of 74.88%. 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 RankSector Rank
OM 51.99%
PM (TTM) 43.22%
GM 74.88%
OM growth 3Y-0.46%
OM growth 5Y-1.01%
PM growth 3Y30.49%
PM growth 5Y17.67%
GM growth 3Y1.52%
GM growth 5Y0.37%

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSA is still creating some value.
There is no outstanding debt for PSA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 3.64 indicates that PSA is not in any danger for bankruptcy at the moment.
PSA has a better Altman-Z score (3.64) than 100.00% of its industry peers.
PSA has a debt to FCF ratio of 4.79. This is a neutral value as PSA would need 4.79 years to pay back of all of its debts.
PSA has a Debt to FCF ratio of 4.79. This is amongst the best in the industry. PSA outperforms 96.43% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that PSA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.89, PSA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 4.79
Altman-Z 3.64
ROIC/WACC1.08
WACC8.76%

2.3 Liquidity

A Current Ratio of 0.98 indicates that PSA may have some problems paying its short term obligations.
The Current ratio of PSA (0.98) is better than 64.29% of its industry peers.
PSA has a Quick Ratio of 0.98. 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 Quick ratio of 0.98 is fine compared to the rest of the industry. PSA outperforms 64.29% 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 RankSector Rank
Current Ratio 0.98
Quick Ratio 0.98

4

3. Growth

3.1 Past

The earnings per share for PSA have decreased by -3.83% in the last year.
The Earnings Per Share has been growing by 10.97% on average over the past years. This is quite good.
Looking at the last year, PSA shows a quite strong growth in Revenue. The Revenue has grown by 10.66% in the last year.
Measured over the past years, PSA shows a quite strong growth in Revenue. The Revenue has been growing by 9.40% on average per year.
EPS 1Y (TTM)-3.83%
EPS 3Y16.11%
EPS 5Y10.97%
EPS growth Q2Q31.21%
Revenue 1Y (TTM)10.66%
Revenue growth 3Y13.57%
Revenue growth 5Y9.4%
Revenue growth Q2Q5.12%

3.2 Future

PSA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.54% yearly.
PSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.43% yearly.
EPS Next Y-0.17%
EPS Next 2Y0.98%
EPS Next 3Y1.23%
EPS Next 5Y2.54%
Revenue Next Year8.75%
Revenue Next 2Y7.07%
Revenue Next 3Y5.71%
Revenue Next 5Y5.43%

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

4. Valuation

4.1 Price/Earnings Ratio

PSA is valuated rather expensively with a Price/Earnings ratio of 23.44.
82.14% of the companies in the same industry are more expensive than PSA, based on the Price/Earnings ratio.
PSA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.18, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.26, which indicates a rather expensive current valuation of PSA.
Based on the Price/Forward Earnings ratio, PSA is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
PSA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.51.
Industry RankSector Rank
PE 23.44
Fwd PE 24.26

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSA.
PSA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSA is cheaper than 60.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 26.32
EV/EBITDA 17.98

4.3 Compensation for Growth

The excellent profitability rating of PSA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.14
EPS Next 2Y0.98%
EPS Next 3Y1.23%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.19%, PSA is a good candidate for dividend investing.
PSA's Dividend Yield is comparable with the industry average which is at 4.78.
Compared to an average S&P500 Dividend Yield of 2.48, PSA pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.19%

5.2 History

The dividend of PSA is nicely growing with an annual growth rate of 18.88%!
PSA has paid a dividend for at least 10 years, which is a reliable track record.
PSA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)18.88%
Div Incr Years2
Div Non Decr Years13

5.3 Sustainability

PSA pays out 110.77% 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.
DP110.77%
EPS Next 2Y0.98%
EPS Next 3Y1.23%

PUBLIC STORAGE

NYSE:PSA (2/20/2024, 10:41:55 AM)

282.24

+0.72 (+0.26%)

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 Cap49.63B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.19%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
PT rev (3m)
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)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 23.44
Fwd PE 24.26
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)2.14
Profitability
Industry RankSector Rank
ROA 9.67%
ROE 19.01%
ROCE
ROIC
ROICexc
ROICexgc
OM 51.99%
PM (TTM) 43.22%
GM 74.88%
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 Turnover0.22
Health
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.98
Quick Ratio 0.98
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)-3.83%
EPS 3Y16.11%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.66%
Revenue growth 3Y13.57%
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