EXTRA SPACE STORAGE INC (EXR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EXR - US30225T1025 - REIT
138.87 USD
+1.71 (+1.25%)
138.87 USD
0 (0%)
Overall EXR gets a fundamental rating of 4 out of 10. We evaluated EXR against 30 industry peers in the Specialized REITs industry. There are concerns on the financial health of EXR while its profitability can be described as average. EXR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- EXR had positive earnings in the past year.
- In the past year EXR had a positive cash flow from operations.
- In the past 5 years EXR has always been profitable.
- In the past 5 years EXR always reported a positive cash flow from operatings.
1.2 Ratios
- EXR has a Return On Assets of 3.24%. This is in the better half of the industry: EXR outperforms 66.67% of its industry peers.
- EXR's Return On Equity of 6.96% is in line compared to the rest of the industry. EXR outperforms 60.00% of its industry peers.
- With a Return On Invested Capital value of 4.10%, EXR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- EXR had an Average Return On Invested Capital over the past 3 years of 4.86%. This is in line with the industry average of 4.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 6.96% | ||
| ROIC | 4.1% |
ROA(3y)4.31%
ROA(5y)5.19%
ROE(3y)12.69%
ROE(5y)16.69%
ROIC(3y)4.86%
ROIC(5y)5.36%
1.3 Margins
- With a decent Profit Margin value of 28.35%, EXR is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of EXR has declined.
- With a decent Operating Margin value of 43.52%, EXR is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- EXR's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 70.74%, EXR is in line with its industry, outperforming 50.00% of the companies in the same industry.
- 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 | 43.52% | ||
| PM (TTM) | 28.35% | ||
| GM | 70.74% |
OM growth 3Y-6.69%
OM growth 5Y-2.35%
PM growth 3Y-20.63%
PM growth 5Y-3.95%
GM growth 3Y-0.98%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EXR is destroying value.
- EXR has more shares outstanding than it did 1 year ago.
- EXR has more shares outstanding than it did 5 years ago.
- EXR has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.30, we must say that EXR is in the distress zone and has some risk of bankruptcy.
- EXR has a Altman-Z score of 1.30. This is in the better half of the industry: EXR outperforms 63.33% of its industry peers.
- The Debt to FCF ratio of EXR is 15.11, which is on the high side as it means it would take EXR, 15.11 years of fcf income to pay off all of its debts.
- EXR has a Debt to FCF ratio (15.11) which is comparable to the rest of the industry.
- EXR has a Debt/Equity ratio of 0.95. This is a neutral value indicating EXR is somewhat dependend on debt financing.
- EXR has a Debt to Equity ratio (0.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 15.11 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.53
WACC7.72%
2.3 Liquidity
- A Current Ratio of 0.32 indicates that EXR may have some problems paying its short term obligations.
- With a Current ratio value of 0.32, EXR is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
- A Quick Ratio of 0.32 indicates that EXR may have some problems paying its short term obligations.
- The Quick ratio of EXR (0.32) is worse than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
- EXR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.47%, which is quite good.
- Measured over the past 5 years, EXR shows a small growth in Earnings Per Share. The EPS has been growing by 6.33% on average per year.
- EXR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.38%.
- EXR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.01% yearly.
EPS 1Y (TTM)8.47%
EPS 3Y-11.05%
EPS 5Y6.33%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y27.34%
Revenue growth 5Y20.01%
Sales Q2Q%3.48%
3.2 Future
- EXR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.17% yearly.
- The Revenue is expected to grow by 3.05% on average over the next years.
EPS Next Y8.74%
EPS Next 2Y6.26%
EPS Next 3Y5.65%
EPS Next 5Y6.17%
Revenue Next Year1.82%
Revenue Next 2Y3.31%
Revenue Next 3Y3.61%
Revenue Next 5Y3.05%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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 31.00, EXR can be considered very expensive at the moment.
- EXR's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of EXR to the average of the S&P500 Index (28.39), we can say EXR is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 28.27, the valuation of EXR can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as EXR.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, EXR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31 | ||
| Fwd PE | 28.27 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EXR.
- EXR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.51 | ||
| EV/EBITDA | 19.17 |
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)3.55
PEG (5Y)4.89
EPS Next 2Y6.26%
EPS Next 3Y5.65%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.51%, EXR is a good candidate for dividend investing.
- EXR's Dividend Yield is slightly below the industry average, which is at 5.51.
- Compared to an average S&P500 Dividend Yield of 1.82, EXR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
5.2 History
- The dividend of EXR is nicely growing with an annual growth rate of 12.75%!
- EXR has been paying a dividend for at least 10 years, so it has a reliable track record.
- EXR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.75%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
- EXR pays out 145.22% 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.
DP145.22%
EPS Next 2Y6.26%
EPS Next 3Y5.65%
EXTRA SPACE STORAGE INC / EXR FAQ
What is the fundamental rating for EXR stock?
ChartMill assigns a fundamental rating of 4 / 10 to EXR.
What is the valuation status of EXTRA SPACE STORAGE INC (EXR) stock?
ChartMill assigns a valuation rating of 2 / 10 to EXTRA SPACE STORAGE INC (EXR). This can be considered as Overvalued.
What is the profitability of EXR stock?
EXTRA SPACE STORAGE INC (EXR) has a profitability rating of 5 / 10.
What is the earnings growth outlook for EXTRA SPACE STORAGE INC?
The Earnings per Share (EPS) of EXTRA SPACE STORAGE INC (EXR) is expected to grow by 8.74% in the next year.
Is the dividend of EXTRA SPACE STORAGE INC sustainable?
The dividend rating of EXTRA SPACE STORAGE INC (EXR) is 6 / 10 and the dividend payout ratio is 145.22%.