PUBLIC STORAGE (PSA) Stock Fundamental Analysis
USA - NYSE:PSA - US74460D1090 - REIT
292.32 USD
-2.6 (-0.88%)
289.21 USD
-3.11 (-1.06%)
We assign a fundamental rating of 5 out of 10 to PSA. PSA was compared to 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PSA was profitable.
In the past year PSA had a positive cash flow from operations.
In the past 5 years PSA has always been profitable.
In the past 5 years PSA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.85%, PSA belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
With an excellent Return On Equity value of 17.20%, PSA belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years 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
With a decent Profit Margin value of 33.95%, PSA is doing good in the industry, outperforming 79.31% of the companies in the same industry.
PSA's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 46.96%, PSA is doing good in the industry, outperforming 79.31% of the companies in the same industry.
In the last couple of years the Operating Margin of PSA has declined.
PSA has a Gross Margin of 73.00%. This is comparable to the rest of the industry: PSA outperforms 55.17% 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 | 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.
PSA has about the same amout of 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 3.26. This indicates that PSA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.26, PSA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PSA has a debt to FCF ratio of 5.31. This is a neutral value as PSA would need 5.31 years to pay back of all of its debts.
PSA has a better Debt to FCF ratio (5.31) than 93.10% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that PSA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.04, PSA is in line with its industry, outperforming 55.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 3.26 |
ROIC/WACC1.19
WACC7.73%
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.
With a Current ratio value of 0.84, PSA perfoms like the industry average, outperforming 51.72% of the companies in the same 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.
PSA has a Quick ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
PSA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.06%.
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 2.49%.
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)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.
PSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.63% yearly.
EPS Next Y1.95%
EPS Next 2Y2.97%
EPS Next 3Y4.89%
EPS Next 5Y3.9%
Revenue Next Year1.98%
Revenue Next 2Y2.81%
Revenue Next 3Y3.53%
Revenue Next 5Y4.63%
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.
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
A Price/Earnings ratio of 31.88 indicates a quite expensive valuation of PSA.
Based on the Price/Earnings ratio, PSA is valued a bit cheaper than 62.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. PSA is around the same levels.
The Price/Forward Earnings ratio is 25.93, which means the current valuation is very expensive for PSA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSA indicates a somewhat cheap valuation: PSA is cheaper than 68.97% of the companies listed in the same industry.
PSA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.88 | ||
| Fwd PE | 25.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSA is valued a bit cheaper than 68.97% of the companies in the same industry.
PSA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSA is cheaper than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.11 | ||
| EV/EBITDA | 18.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PSA does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PSA may justify a higher PE ratio.
PEG (NY)16.35
PEG (5Y)4.07
EPS Next 2Y2.97%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
PSA has a Yearly Dividend Yield of 5.82%, which is a nice return.
PSA's Dividend Yield is a higher than the industry average which is at 5.99.
Compared to an average S&P500 Dividend Yield of 2.38, PSA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.82% |
5.2 History
The dividend of PSA is nicely growing with an annual growth rate of 7.24%!
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
142.79% of the earnings are spent on dividend by PSA. 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 2Y2.97%
EPS Next 3Y4.89%
292.32
-2.6 (-0.88%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners82.4%
Inst Owner Change-3.69%
Ins Owners10.1%
Ins Owner Change0.09%
Market Cap51.29B
Analysts76.8
Price Target332.82 (13.85%)
Short Float %1.99%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.82% |
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)-2.7%
PT rev (3m)-3.18%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-0.68%
EPS NY rev (1m)8.95%
EPS NY rev (3m)6.84%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.88 | ||
| Fwd PE | 25.93 | ||
| P/S | 10.8 | ||
| P/FCF | 26.11 | ||
| P/OCF | 16.31 | ||
| P/B | 5.47 | ||
| P/tB | 5.62 | ||
| EV/EBITDA | 18.06 |
EPS(TTM)9.17
EY3.14%
EPS(NY)11.27
Fwd EY3.86%
FCF(TTM)11.2
FCFY3.83%
OCF(TTM)17.93
OCFY6.13%
SpS27.07
BVpS53.42
TBVpS51.97
PEG (NY)16.35
PEG (5Y)4.07
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 | 3.26 |
F-Score4
WACC7.73%
ROIC/WACC1.19
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 Y1.95%
EPS Next 2Y2.97%
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 2Y2.81%
Revenue Next 3Y3.53%
Revenue Next 5Y4.63%
EBIT growth 1Y-1.19%
EBIT growth 3Y9.28%
EBIT growth 5Y8.34%
EBIT Next Year42.58%
EBIT Next 3Y15.89%
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%