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 is not valued too expensively and it also shows a decent 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
PSA's Return On Assets of 9.84% is amongst the best of the industry. PSA outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 19.46%, PSA belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of PSA (9.55%) is better than 92.86% of its industry peers.
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
The Profit Margin of PSA (43.14%) is better than 89.29% of its industry peers.
In the last couple of years the Profit Margin of PSA has declined.
Looking at the Operating Margin, with a value of 51.41%, PSA belongs to the top 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's Gross Margin of 74.59% is fine compared to the rest of the industry. PSA outperforms 60.71% of its industry peers.
PSA's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSA is still creating some value.
PSA has more shares outstanding than it did 1 year ago.
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 3.40. This indicates that PSA is financially healthy and has little risk of bankruptcy at the moment.
PSA's Altman-Z score of 3.40 is amongst the best of the industry. PSA outperforms 100.00% of its industry peers.
PSA has a debt to FCF ratio of 4.67. This is a neutral value as PSA would need 4.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.67, PSA belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that PSA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, PSA is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.67 | ||
| Altman-Z | 3.4 |
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 has a Current ratio of 0.62. This is in the lower half of the industry: PSA underperforms 60.71% of its industry peers.
A Quick Ratio of 0.62 indicates that PSA may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, PSA perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
The current and quick ratio evaluation for PSA is rather negative, while it does have 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
PSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.28%, which is quite impressive.
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.
PSA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.36% yearly.
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
PSA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.04% yearly.
PSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.74% yearly.
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
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 18.49 indicates a rather expensive valuation of PSA.
Based on the Price/Earnings ratio, PSA is valued cheaper than 82.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of PSA to the average of the S&P500 Index (25.20), we can say PSA is valued slightly cheaper.
A Price/Forward Earnings ratio of 25.00 indicates a rather expensive valuation of PSA.
Based on the Price/Forward Earnings ratio, PSA is valued a bit cheaper than 64.29% of the companies in the same industry.
PSA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 25 |
4.2 Price Multiples
PSA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PSA is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.65 | ||
| EV/EBITDA | 16.65 |
4.3 Compensation for Growth
PSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.29
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
118.33% of the earnings are spent on dividend by PSA. This is not a sustainable payout ratio.
DP118.33%
EPS Next 2Y4.29%
EPS Next 3Y2.89%
PUBLIC STORAGE
NYSE:PSA (4/23/2024, 7:20:29 PM)
After market: 262.22 0 (0%)262.22
+0.78 (+0.3%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
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Market Cap46.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 25 | ||
| 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)2.29
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
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