EXTRA SPACE STORAGE INC (EXR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EXR - US30225T1025 - REIT
143.76 USD
-1.66 (-1.14%)
143.76 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. 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.
- In the past year EXR had a positive cash flow from operations.
- In the past 5 years EXR has always been profitable.
- EXR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 3.24%, EXR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- The Return On Equity of EXR (6.96%) 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.
- 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
- The Profit Margin of EXR (28.35%) is better than 70.00% of its industry peers.
- In the last couple of years the Profit Margin of EXR has declined.
- The Operating Margin of EXR (43.52%) is better than 70.00% of its industry peers.
- EXR's Operating Margin has declined in the last couple of years.
- 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
- 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.
- Compared to 5 years ago, EXR has more shares outstanding
- Compared to 1 year ago, EXR has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.37, we must say that EXR is in the distress zone and has some risk of bankruptcy.
- EXR has a better Altman-Z score (1.37) than 66.67% of its industry peers.
- 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.
- 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.
- With a Debt to Equity ratio value of 0.95, EXR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 15.11 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.53
WACC7.76%
2.3 Liquidity
- A Current Ratio of 0.32 indicates that EXR may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.32, EXR is doing worse than 76.67% of the companies in the same industry.
- A Quick Ratio of 0.32 indicates that EXR may have some problems paying its short term obligations.
- EXR has a Quick ratio of 0.32. This is in the lower half of the industry: EXR underperforms 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.
- The Earnings Per Share has been growing slightly by 6.33% on average over the past years.
- Looking at the last year, EXR shows a small growth in Revenue. The Revenue has grown by 3.38% in the last year.
- 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)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
- 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
- A Price/Earnings ratio of 32.09 indicates a quite expensive valuation of EXR.
- Compared to the rest of the industry, the Price/Earnings ratio of EXR is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.32. EXR is around the same levels.
- With a Price/Forward Earnings ratio of 28.95, EXR can be considered very expensive at the moment.
- EXR's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, EXR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.09 | ||
| Fwd PE | 28.95 |
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.
- EXR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.73 | ||
| EV/EBITDA | 19.97 |
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)2.85
PEG (5Y)5.07
EPS Next 2Y6.84%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.40%, EXR is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.65, EXR is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.83, EXR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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 2Y6.84%
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%.