EXTRA SPACE STORAGE INC (EXR) Stock Fundamental Analysis
NYSE:EXR - New York Stock Exchange, Inc. - US30225T1025 - REIT - Currency: USD
Taking everything into account, EXR scores 4 out of 10 in our fundamental rating. EXR was compared to 29 industry peers in the Specialized REITs industry. While EXR is still in line with the averages on profitability rating, there are concerns on its financial health. EXR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EXR had positive earnings in the past year.
EXR had a positive operating cash flow in the past year.
Each year in the past 5 years EXR has been profitable.
Of the past 5 years EXR 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.88%, EXR is in line with its industry, outperforming 53.57% of the companies in the same industry.
EXR's Return On Equity of 5.76% is in line compared to the rest of the industry. EXR outperforms 50.00% of its industry peers.
The Return On Invested Capital of EXR (4.12%) is worse than 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EXR is in line with the industry average of 5.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.76% | ||
| ROIC | 4.12% |
ROA(3y)4.32%
ROA(5y)5.19%
ROE(3y)12.69%
ROE(5y)16.69%
ROIC(3y)4.86%
ROIC(5y)5.36%
1.3 Margins
EXR's Profit Margin of 24.96% is fine compared to the rest of the industry. EXR outperforms 67.86% of its industry peers.
EXR's Profit Margin has declined in the last couple of years.
The Operating Margin of EXR (43.45%) is better than 60.71% of its industry peers.
In the last couple of years the Operating Margin of EXR has declined.
EXR has a Gross Margin of 72.71%. This is comparable to the rest of the industry: EXR outperforms 53.57% of its industry peers.
In the last couple of years the Gross Margin of EXR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.45% | ||
| PM (TTM) | 24.96% | ||
| GM | 72.71% |
OM growth 3Y-6.69%
OM growth 5Y-2.35%
PM growth 3Y-20.59%
PM growth 5Y-3.92%
GM growth 3Y-1.68%
GM growth 5Y-0.49%
2. Health
2.1 Basic Checks
EXR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for EXR has been increased compared to 1 year ago.
The number of shares outstanding for EXR has been increased compared to 5 years ago.
EXR has a worse debt/assets ratio than last year.
2.2 Solvency
EXR has an Altman-Z score of 1.59. This is a bad value and indicates that EXR is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.59, EXR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
EXR has a debt to FCF ratio of 9.58. This is a negative value and a sign of low solvency as EXR would need 9.58 years to pay back of all of its debts.
EXR has a Debt to FCF ratio of 9.58. This is in the better half of the industry: EXR outperforms 75.00% of its industry peers.
EXR has a Debt/Equity ratio of 0.82. This is a neutral value indicating EXR is somewhat dependend on debt financing.
EXR has a better Debt to Equity ratio (0.82) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 9.58 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.53
WACC7.74%
2.3 Liquidity
A Current Ratio of 0.27 indicates that EXR may have some problems paying its short term obligations.
EXR has a worse Current ratio (0.27) than 82.14% of its industry peers.
EXR has a Quick Ratio of 0.27. This is a bad value and indicates that EXR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.27, EXR is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
EXR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.94%.
EXR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.33% yearly.
Looking at the last year, EXR shows a very strong growth in Revenue. The Revenue has grown by 27.21%.
Measured over the past years, EXR shows a very strong growth in Revenue. The Revenue has been growing by 20.01% on average per year.
EPS 1Y (TTM)-11.94%
EPS 3Y-11.05%
EPS 5Y6.33%
EPS Q2Q%21.57%
Revenue 1Y (TTM)27.21%
Revenue growth 3Y27.34%
Revenue growth 5Y20.01%
Sales Q2Q%1.47%
3.2 Future
Based on estimates for the next years, EXR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.85% on average per year.
Based on estimates for the next years, EXR will show a small growth in Revenue. The Revenue will grow by 3.73% on average per year.
EPS Next Y8.61%
EPS Next 2Y7.73%
EPS Next 3Y10.4%
EPS Next 5Y8.85%
Revenue Next Year2.48%
Revenue Next 2Y2.92%
Revenue Next 3Y2.21%
Revenue Next 5Y3.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 35.40, EXR can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as EXR.
EXR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.75.
A Price/Forward Earnings ratio of 32.59 indicates a quite expensive valuation of EXR.
EXR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of EXR to the average of the S&P500 Index (22.44), we can say EXR is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.4 | ||
| Fwd PE | 32.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EXR is valued a bit more expensive than 71.43% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as EXR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.14 | ||
| EV/EBITDA | 20.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EXR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.11
PEG (5Y)5.59
EPS Next 2Y7.73%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
EXR has a Yearly Dividend Yield of 4.25%, which is a nice return.
Compared to an average industry Dividend Yield of 4.49, EXR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, EXR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
5.2 History
On average, the dividend of EXR grows each year by 12.53%, which is quite nice.
EXR has paid a dividend for at least 10 years, which is a reliable track record.
EXR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.53%
Div Incr Years14
Div Non Decr Years15
5.3 Sustainability
EXR pays out 170.20% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EXR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP170.2%
EPS Next 2Y7.73%
EPS Next 3Y10.4%
153.99
+1.43 (+0.94%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.98%
Inst Owner Change-2.12%
Ins Owners0.96%
Ins Owner Change-0.51%
Market Cap32.64B
Analysts66.96
Price Target171.66 (11.47%)
Short Float %1.49%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
Yearly Dividend6.06
Dividend Growth(5Y)12.53%
DP170.2%
Div Incr Years14
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.86%
Min EPS beat(2)-19.64%
Max EPS beat(2)13.92%
EPS beat(4)2
Avg EPS beat(4)-5.37%
Min EPS beat(4)-19.64%
Max EPS beat(4)13.92%
EPS beat(8)5
Avg EPS beat(8)1.75%
EPS beat(12)9
Avg EPS beat(12)6.63%
EPS beat(16)13
Avg EPS beat(16)11.97%
Revenue beat(2)0
Avg Revenue beat(2)-6.17%
Min Revenue beat(2)-7.05%
Max Revenue beat(2)-5.29%
Revenue beat(4)0
Avg Revenue beat(4)-5.48%
Min Revenue beat(4)-7.05%
Max Revenue beat(4)-4.26%
Revenue beat(8)2
Avg Revenue beat(8)0.91%
Revenue beat(12)6
Avg Revenue beat(12)6.94%
Revenue beat(16)10
Avg Revenue beat(16)10.05%
PT rev (1m)0.07%
PT rev (3m)-3.56%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-1.06%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.4 | ||
| Fwd PE | 32.59 | ||
| P/S | 10.1 | ||
| P/FCF | 27.14 | ||
| P/OCF | 17.71 | ||
| P/B | 2.33 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 20.01 |
EPS(TTM)4.35
EY2.82%
EPS(NY)4.72
Fwd EY3.07%
FCF(TTM)5.67
FCFY3.68%
OCF(TTM)8.7
OCFY5.65%
SpS15.25
BVpS66.09
TBVpS65.1
PEG (NY)4.11
PEG (5Y)5.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.76% | ||
| ROCE | 5.21% | ||
| ROIC | 4.12% | ||
| ROICexc | 4.13% | ||
| ROICexgc | 4.16% | ||
| OM | 43.45% | ||
| PM (TTM) | 24.96% | ||
| GM | 72.71% | ||
| FCFM | 37.21% |
ROA(3y)4.32%
ROA(5y)5.19%
ROE(3y)12.69%
ROE(5y)16.69%
ROIC(3y)4.86%
ROIC(5y)5.36%
ROICexc(3y)4.89%
ROICexc(5y)5.4%
ROICexgc(3y)5.01%
ROICexgc(5y)5.51%
ROCE(3y)6.15%
ROCE(5y)6.79%
ROICexcg growth 3Y-15.16%
ROICexcg growth 5Y-8.38%
ROICexc growth 3Y-15.27%
ROICexc growth 5Y-8.37%
OM growth 3Y-6.69%
OM growth 5Y-2.35%
PM growth 3Y-20.59%
PM growth 5Y-3.92%
GM growth 3Y-1.68%
GM growth 5Y-0.49%
F-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 9.58 | ||
| Debt/EBITDA | 5.27 | ||
| Cap/Depr | 81.85% | ||
| Cap/Sales | 19.82% | ||
| Interest Coverage | 2.74 | ||
| Cash Conversion | 84.27% | ||
| Profit Quality | 149.07% | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 1.59 |
F-Score5
WACC7.74%
ROIC/WACC0.53
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.94%
EPS 3Y-11.05%
EPS 5Y6.33%
EPS Q2Q%21.57%
EPS Next Y8.61%
EPS Next 2Y7.73%
EPS Next 3Y10.4%
EPS Next 5Y8.85%
Revenue 1Y (TTM)27.21%
Revenue growth 3Y27.34%
Revenue growth 5Y20.01%
Sales Q2Q%1.47%
Revenue Next Year2.48%
Revenue Next 2Y2.92%
Revenue Next 3Y2.21%
Revenue Next 5Y3.73%
EBIT growth 1Y21.05%
EBIT growth 3Y18.82%
EBIT growth 5Y17.19%
EBIT Next Year50.72%
EBIT Next 3Y18.39%
EBIT Next 5Y12.03%
FCF growth 1Y40.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.82%
OCF growth 3YN/A
OCF growth 5YN/A