PUBLIC STORAGE (PSA) Stock Fundamental Analysis
NYSE:PSA - New York Stock Exchange, Inc. - US74460D1090 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to PSA. PSA was compared to 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
PSA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PSA has a better Return On Assets (9.03%) than 96.67% of its industry peers.
The Return On Equity of PSA (18.52%) is better than 90.00% of its industry peers.
PSA has a Return On Invested Capital of 9.51%. This is amongst the best in the industry. PSA outperforms 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 5.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 18.52% | ||
| ROIC | 9.51% |
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 has a Profit Margin of 37.52%. This is amongst the best in the industry. PSA outperforms 86.67% of its industry peers.
In the last couple of years the Profit Margin of PSA has declined.
PSA has a better Operating Margin (46.98%) than 76.67% of its industry peers.
In the last couple of years the Operating Margin of PSA has declined.
PSA has a Gross Margin (73.20%) 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 | 46.98% | ||
| PM (TTM) | 37.52% | ||
| GM | 73.2% |
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
PSA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
PSA has a worse debt/assets ratio than last year.
2.2 Solvency
PSA has an Altman-Z score of 3.42. This indicates that PSA is financially healthy and has little risk of bankruptcy at the moment.
PSA has a better Altman-Z score (3.42) than 100.00% of its industry peers.
The Debt to FCF ratio of PSA is 4.54, which is a neutral value as it means it would take PSA, 4.54 years of fcf income to pay off all of its debts.
PSA has a better Debt to FCF ratio (4.54) than 93.33% of its industry peers.
PSA has a Debt/Equity ratio of 0.92. This is a neutral value indicating PSA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, PSA is in line with its industry, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.21
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.24 indicates that PSA may have some problems paying its short term obligations.
With a Current ratio value of 0.24, PSA is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.24 indicates that PSA may have some problems paying its short term obligations.
PSA has a Quick ratio of 0.24. This is amonst the worse of the industry: PSA underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
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 3.94% in the last year.
Measured over the past years, PSA shows a quite strong growth in Revenue. The Revenue has been growing by 10.46% on average per year.
EPS 1Y (TTM)-14.06%
EPS 3Y2.5%
EPS 5Y7.84%
EPS Q2Q%-33.83%
Revenue 1Y (TTM)3.94%
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 4.47% yearly.
Based on estimates for the next years, PSA will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y-6.42%
EPS Next 2Y0.1%
EPS Next 3Y4.89%
EPS Next 5Y4.47%
Revenue Next Year2%
Revenue Next 2Y2.95%
Revenue Next 3Y3.81%
Revenue Next 5Y4.71%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.41, the valuation of PSA can be described as expensive.
PSA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.82. PSA is around the same levels.
With a Price/Forward Earnings ratio of 26.18, PSA can be considered very expensive at the moment.
70.00% of the companies in the same industry are more expensive than PSA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, PSA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.41 | ||
| Fwd PE | 26.18 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than PSA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSA indicates a somewhat cheap valuation: PSA is cheaper than 63.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.56 | ||
| EV/EBITDA | 17.35 |
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)3.88
EPS Next 2Y0.1%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.41%, PSA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.91, PSA is paying slightly less dividend.
PSA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
5.2 History
On average, the dividend of PSA grows each year by 7.24%, which is quite nice.
PSA has paid a dividend for at least 10 years, which is 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 129.87% 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.
DP129.87%
EPS Next 2Y0.1%
EPS Next 3Y4.89%
278.89
+6.95 (+2.56%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners82.01%
Inst Owner Change0.08%
Ins Owners10.1%
Ins Owner Change-0.12%
Market Cap48.93B
Analysts76.8
Price Target343.8 (23.27%)
Short Float %1.89%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
Yearly Dividend13.11
Dividend Growth(5Y)7.24%
DP129.87%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.03%
Min EPS beat(2)-15.67%
Max EPS beat(2)23.73%
EPS beat(4)2
Avg EPS beat(4)-2.13%
Min EPS beat(4)-17.82%
Max EPS beat(4)23.73%
EPS beat(8)5
Avg EPS beat(8)-1.14%
EPS beat(12)7
Avg EPS beat(12)1.5%
EPS beat(16)11
Avg EPS beat(16)6.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-1.49%
Max Revenue beat(4)0.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.57%
Revenue beat(12)5
Avg Revenue beat(12)-0.27%
Revenue beat(16)8
Avg Revenue beat(16)0.12%
PT rev (1m)0.02%
PT rev (3m)2.28%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.41 | ||
| Fwd PE | 26.18 | ||
| P/S | 10.36 | ||
| P/FCF | 23.56 | ||
| P/OCF | 15.44 | ||
| P/B | 5.11 | ||
| P/tB | 5.26 | ||
| EV/EBITDA | 17.35 |
EPS(TTM)9.17
EY3.29%
EPS(NY)10.65
Fwd EY3.82%
FCF(TTM)11.84
FCFY4.25%
OCF(TTM)18.06
OCFY6.47%
SpS26.91
BVpS54.53
TBVpS53.03
PEG (NY)N/A
PEG (5Y)3.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 18.52% | ||
| ROCE | 12.04% | ||
| ROIC | 9.51% | ||
| ROICexc | 9.66% | ||
| ROICexgc | 9.96% | ||
| OM | 46.98% | ||
| PM (TTM) | 37.52% | ||
| GM | 73.2% | ||
| FCFM | 43.99% |
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-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 96.77% | ||
| Cap/Sales | 23.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.68% | ||
| Profit Quality | 117.23% | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 3.42 |
F-Score6
WACC7.83%
ROIC/WACC1.21
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-6.42%
EPS Next 2Y0.1%
EPS Next 3Y4.89%
EPS Next 5Y4.47%
Revenue 1Y (TTM)3.94%
Revenue growth 3Y11.19%
Revenue growth 5Y10.46%
Sales Q2Q%2.38%
Revenue Next Year2%
Revenue Next 2Y2.95%
Revenue Next 3Y3.81%
Revenue Next 5Y4.71%
EBIT growth 1Y-3.06%
EBIT growth 3Y9.28%
EBIT growth 5Y8.34%
EBIT Next Year42.54%
EBIT Next 3Y15.94%
EBIT Next 5Y10.8%
FCF growth 1Y21.97%
FCF growth 3YN/A
FCF growth 5Y12.79%
OCF growth 1Y0.31%
OCF growth 3Y7.14%
OCF growth 5Y8.63%