EXTRA SPACE STORAGE INC (EXR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EXR - US30225T1025 - REIT
141.52 USD
-2.24 (-1.56%)
141.52 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to EXR. EXR was compared to 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.
- Each year in the past 5 years EXR has been profitable.
- Each year in the past 5 years EXR had a positive operating cash flow.
1.2 Ratios
- EXR's Return On Assets of 3.24% is fine compared to the rest of the industry. EXR outperforms 66.67% of its industry peers.
- EXR has a Return On Equity (6.96%) which is comparable to the rest of the industry.
- EXR has a Return On Invested Capital (4.10%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for EXR 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
- Looking at the Profit Margin, with a value of 28.35%, EXR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- EXR's Profit Margin has declined in the last couple of years.
- EXR has a Operating Margin of 43.52%. This is in the better half of the industry: EXR outperforms 70.00% of its industry peers.
- In the last couple of years the Operating Margin of EXR has declined.
- EXR has a Gross Margin of 70.74%. This is comparable to the rest of the industry: EXR outperforms 50.00% 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 | 43.52% | ||
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EXR is destroying value.
- Compared to 1 year ago, EXR has more shares outstanding
- Compared to 5 years ago, EXR has more shares outstanding
- The debt/assets ratio for EXR is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.36, we must say that EXR is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.36, EXR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- EXR has a debt to FCF ratio of 15.11. This is a negative value and a sign of low solvency as EXR would need 15.11 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 15.11, EXR is in line with its industry, outperforming 53.33% of the companies in the same industry.
- A Debt/Equity ratio of 0.95 indicates that EXR is somewhat dependend on debt financing.
- EXR has a Debt to Equity ratio (0.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 15.11 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.53
WACC7.74%
2.3 Liquidity
- EXR has a Current Ratio of 0.32. This is a bad value and indicates that EXR is not financially healthy enough and could expect problems in meeting its short term obligations.
- EXR has a Current ratio of 0.32. This is in the lower half of the industry: EXR underperforms 76.67% of its industry peers.
- A Quick Ratio of 0.32 indicates that EXR may have some problems paying its short term obligations.
- EXR's Quick ratio of 0.32 is on the low side compared to the rest of the industry. EXR is outperformed by 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
- The Earnings Per Share is expected to grow by 6.17% on average over the next years.
- The Revenue is expected to grow by 3.05% on average over the next years.
EPS Next Y11.25%
EPS Next 2Y6.84%
EPS Next 3Y6.16%
EPS Next 5Y6.17%
Revenue Next Year2.48%
Revenue Next 2Y3.32%
Revenue Next 3Y3.69%
Revenue Next 5Y3.05%
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 stable.
- 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
- EXR is valuated quite expensively with a Price/Earnings ratio of 31.59.
- EXR's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, EXR is valued at the same level.
- The Price/Forward Earnings ratio is 28.50, which means the current valuation is very expensive for EXR.
- EXR's Price/Forward Earnings is on the same level as the industry average.
- EXR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.59 | ||
| Fwd PE | 28.5 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXR is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EXR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.17 | ||
| EV/EBITDA | 19.81 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.81
PEG (5Y)4.99
EPS Next 2Y6.84%
EPS Next 3Y6.16%
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 1.81, 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 paid a dividend for at least 10 years, which is 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
- 145.22% of the earnings are spent on dividend by EXR. 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 2Y6.84%
EPS Next 3Y6.16%
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 11.25% 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%.