PUBLIC STORAGE (PSA) Stock Fundamental Analysis
NYSE:PSA - New York Stock Exchange, Inc. - US74460D1090 - REIT - Currency: USD
Overall PSA gets a fundamental rating of 5 out of 10. We evaluated PSA against 30 industry peers in the Specialized REITs industry. While PSA belongs to the best of the industry regarding profitability, 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.
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 9.48%, PSA belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
The Return On Equity of PSA (19.28%) is better than 86.67% of its industry peers.
PSA has a better Return On Invested Capital (9.07%) than 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSA is above the industry average of 5.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 19.28% | ||
| ROIC | 9.07% |
ROA(3y)14.31%
ROA(5y)12.44%
ROE(3y)26.62%
ROE(5y)22.25%
ROIC(3y)9.56%
ROIC(5y)9.28%
1.3 Margins
With an excellent Profit Margin value of 39.88%, PSA belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PSA has declined.
PSA's Operating Margin of 46.88% is fine compared to the rest of the industry. PSA outperforms 76.67% of its industry peers.
In the last couple of years the Operating Margin of PSA has declined.
PSA has a Gross Margin (73.21%) which is in line with its industry peers.
PSA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.88% | ||
| PM (TTM) | 39.88% | ||
| GM | 73.21% |
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.
PSA has about the same amout of shares outstanding than it did 1 year ago.
PSA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PSA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.63 indicates that PSA is not in any danger for bankruptcy at the moment.
The Altman-Z score of PSA (3.63) is better than 100.00% of its industry peers.
PSA has a debt to FCF ratio of 4.42. This is a neutral value as PSA would need 4.42 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.42, PSA belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
A Debt/Equity ratio of 0.96 indicates that PSA is somewhat dependend on debt financing.
PSA has a Debt to Equity ratio (0.96) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.13
WACC8.02%
2.3 Liquidity
PSA has a Current Ratio of 0.76. 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 Current ratio (0.76) which is comparable to the rest of the industry.
PSA has a Quick Ratio of 0.76. 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 (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
PSA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.89%.
PSA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.84% yearly.
PSA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.94%.
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)-3.89%
EPS 3Y2.5%
EPS 5Y7.84%
EPS Q2Q%45.25%
Revenue 1Y (TTM)3.94%
Revenue growth 3Y11.19%
Revenue growth 5Y10.46%
Sales Q2Q%1.51%
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 4.33% on average per year.
Based on estimates for the next years, PSA will show a small growth in Revenue. The Revenue will grow by 4.67% on average per year.
EPS Next Y-4.14%
EPS Next 2Y0.58%
EPS Next 3Y4.89%
EPS Next 5Y4.33%
Revenue Next Year1.66%
Revenue Next 2Y2.78%
Revenue Next 3Y3.72%
Revenue Next 5Y4.67%
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 27.64, the valuation of PSA can be described as expensive.
PSA's Price/Earnings ratio is a bit cheaper when compared to the industry. PSA is cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, PSA is valued at the same level.
A Price/Forward Earnings ratio of 28.83 indicates a quite expensive valuation of PSA.
Based on the Price/Forward Earnings ratio, PSA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PSA to the average of the S&P500 Index (21.65), we can say PSA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 28.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSA.
66.67% 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 | 24.38 | ||
| EV/EBITDA | 18.15 |
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)3.53
EPS Next 2Y0.58%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
PSA has a Yearly Dividend Yield of 4.05%, which is a nice return.
Compared to an average industry Dividend Yield of 5.81, PSA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.51, PSA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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 122.92% 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.
DP122.92%
EPS Next 2Y0.58%
EPS Next 3Y4.89%
293.79
-1.44 (-0.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners82.55%
Inst Owner Change0.35%
Ins Owners10.11%
Ins Owner Change1.33%
Market Cap51.54B
Analysts74.17
Price Target342.08 (16.44%)
Short Float %2.07%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend13.11
Dividend Growth(5Y)7.24%
DP122.92%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.95%
Min EPS beat(2)-17.82%
Max EPS beat(2)23.73%
EPS beat(4)3
Avg EPS beat(4)2.82%
Min EPS beat(4)-17.82%
Max EPS beat(4)23.73%
EPS beat(8)5
Avg EPS beat(8)0.5%
EPS beat(12)8
Avg EPS beat(12)3.83%
EPS beat(16)12
Avg EPS beat(16)8.48%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1.49%
Max Revenue beat(4)-0.27%
Revenue beat(8)2
Avg Revenue beat(8)-0.55%
Revenue beat(12)4
Avg Revenue beat(12)-0.41%
Revenue beat(16)8
Avg Revenue beat(16)0.35%
PT rev (1m)-0.95%
PT rev (3m)-4.69%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-3.61%
EPS NY rev (1m)-4.19%
EPS NY rev (3m)-4.69%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 28.83 | ||
| P/S | 10.98 | ||
| P/FCF | 24.38 | ||
| P/OCF | 16.47 | ||
| P/B | 5.31 | ||
| P/tB | 5.46 | ||
| EV/EBITDA | 18.15 |
EPS(TTM)10.63
EY3.62%
EPS(NY)10.19
Fwd EY3.47%
FCF(TTM)12.05
FCFY4.1%
OCF(TTM)17.83
OCFY6.07%
SpS26.77
BVpS55.37
TBVpS53.76
PEG (NY)N/A
PEG (5Y)3.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 19.28% | ||
| ROCE | 11.48% | ||
| ROIC | 9.07% | ||
| ROICexc | 9.29% | ||
| ROICexgc | 9.58% | ||
| OM | 46.88% | ||
| PM (TTM) | 39.88% | ||
| GM | 73.21% | ||
| FCFM | 45.02% |
ROA(3y)14.31%
ROA(5y)12.44%
ROE(3y)26.62%
ROE(5y)22.25%
ROIC(3y)9.56%
ROIC(5y)9.28%
ROICexc(3y)9.85%
ROICexc(5y)9.57%
ROICexgc(3y)10.17%
ROICexgc(5y)9.89%
ROCE(3y)12.1%
ROCE(5y)11.74%
ROICexcg growth 3Y4.01%
ROICexcg growth 5Y-3.47%
ROICexc growth 3Y4.06%
ROICexc growth 5Y-3.36%
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 | 0.96 | ||
| Debt/FCF | 4.42 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 89.78% | ||
| Cap/Sales | 21.6% | ||
| Interest Coverage | 8.17 | ||
| Cash Conversion | 93.92% | ||
| Profit Quality | 112.88% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 3.63 |
F-Score6
WACC8.02%
ROIC/WACC1.13
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)-3.89%
EPS 3Y2.5%
EPS 5Y7.84%
EPS Q2Q%45.25%
EPS Next Y-4.14%
EPS Next 2Y0.58%
EPS Next 3Y4.89%
EPS Next 5Y4.33%
Revenue 1Y (TTM)3.94%
Revenue growth 3Y11.19%
Revenue growth 5Y10.46%
Sales Q2Q%1.51%
Revenue Next Year1.66%
Revenue Next 2Y2.78%
Revenue Next 3Y3.72%
Revenue Next 5Y4.67%
EBIT growth 1Y-5.18%
EBIT growth 3Y9.28%
EBIT growth 5Y8.34%
EBIT Next Year43.46%
EBIT Next 3Y16.04%
EBIT Next 5Y10.8%
FCF growth 1Y8.52%
FCF growth 3YN/A
FCF growth 5Y12.79%
OCF growth 1Y-3.65%
OCF growth 3Y7.14%
OCF growth 5Y8.63%