LIFE STORAGE INC (LSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LSI - US53223X1072 - REIT
133.1 USD
-1.02 (-0.76%)
133.7 USD
+0.6 (+0.45%)
LSI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. There are concerns on the financial health of LSI while its profitability can be described as average. LSI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- LSI had positive earnings in the past year.
- LSI had a positive operating cash flow in the past year.
1.2 Ratios
- LSI has a Return On Assets of 4.96%. This is in the better half of the industry: LSI outperforms 73.33% of its industry peers.
- LSI has a better Return On Equity (10.27%) than 66.67% of its industry peers.
- The Return On Invested Capital of LSI (5.20%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LSI is in line with the industry average of 4.86%.
- The last Return On Invested Capital (5.20%) for LSI is above the 3 year average (4.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 10.27% | ||
| ROIC | 5.2% |
ROA(3y)3.95%
ROA(5y)4.66%
ROE(3y)7.88%
ROE(5y)9.16%
ROIC(3y)4.37%
ROIC(5y)4.38%
1.3 Margins
- Looking at the Profit Margin, with a value of 33.96%, LSI is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
- LSI's Profit Margin has improved in the last couple of years.
- LSI's Operating Margin of 44.13% is fine compared to the rest of the industry. LSI outperforms 76.67% of its industry peers.
- LSI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 73.35%, LSI is in line with its industry, outperforming 50.00% of the companies in the same industry.
- LSI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.13% | ||
| PM (TTM) | 33.96% | ||
| GM | 73.35% |
OM growth 3Y4.08%
OM growth 5Y6.35%
PM growth 3Y-8.49%
PM growth 5Y13.65%
GM growth 3Y3.43%
GM growth 5Y2.08%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LSI is destroying value.
- Compared to 1 year ago, LSI has more shares outstanding
- Compared to 1 year ago, LSI has a worse debt to assets ratio.
2.2 Solvency
- LSI has an Altman-Z score of 2.07. This is not the best score and indicates that LSI is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of LSI (2.07) is better than 83.33% of its industry peers.
- A Debt/Equity ratio of 0.95 indicates that LSI is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.95, LSI is in line with its industry, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.07 |
ROIC/WACC0.66
WACC7.85%
2.3 Liquidity
- LSI has a Current Ratio of 0.50. This is a bad value and indicates that LSI is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of LSI (0.50) is worse than 70.00% of its industry peers.
- A Quick Ratio of 0.50 indicates that LSI may have some problems paying its short term obligations.
- The Quick ratio of LSI (0.50) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.02% over the past year.
- LSI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.29% yearly.
- LSI shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.83%.
- Measured over the past years, LSI shows a quite strong growth in Revenue. The Revenue has been growing by 14.40% on average per year.
EPS 1Y (TTM)26.02%
EPS 3Y23.24%
EPS 5Y22.29%
EPS Q2Q%9.09%
Revenue 1Y (TTM)26.83%
Revenue growth 3Y21.79%
Revenue growth 5Y14.4%
Sales Q2Q%17.18%
3.2 Future
- LSI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.56% yearly.
- LSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.90% yearly.
EPS Next Y6.43%
EPS Next 2Y8.5%
EPS Next 3Y8.37%
EPS Next 5Y5.56%
Revenue Next Year2.51%
Revenue Next 2Y3.8%
Revenue Next 3Y5.26%
Revenue Next 5Y7.9%
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.
- 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 30.88 indicates a quite expensive valuation of LSI.
- LSI's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. LSI is around the same levels.
- LSI is valuated quite expensively with a Price/Forward Earnings ratio of 26.73.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LSI is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. LSI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 26.73 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LSI indicates a slightly more expensive valuation: LSI is more expensive than 76.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.93 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LSI does not grow enough to justify the current Price/Earnings ratio.
- LSI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.8
PEG (5Y)1.39
EPS Next 2Y8.5%
EPS Next 3Y8.37%
5. Dividend
5.1 Amount
- LSI has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
- With a Dividend Yield of 2.70, LSI pays less dividend than the industry average, which is at 5.51. 83.33% of the companies listed in the same industry pay a better dividend than LSI!
- LSI's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
- The dividend of LSI is nicely growing with an annual growth rate of 9.59%!
- LSI has been paying a dividend for over 5 years, so it has already some track record.
- LSI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.59%
Div Incr Years3
Div Non Decr Years12
5.3 Sustainability
- 100.86% of the earnings are spent on dividend by LSI. This is not a sustainable payout ratio.
- The dividend of LSI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP100.86%
EPS Next 2Y8.5%
EPS Next 3Y8.37%
LIFE STORAGE INC / LSI FAQ
What is the ChartMill fundamental rating of LIFE STORAGE INC (LSI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to LSI.
Can you provide the valuation status for LIFE STORAGE INC?
ChartMill assigns a valuation rating of 2 / 10 to LIFE STORAGE INC (LSI). This can be considered as Overvalued.
How profitable is LIFE STORAGE INC (LSI) stock?
LIFE STORAGE INC (LSI) has a profitability rating of 7 / 10.
What is the financial health of LIFE STORAGE INC (LSI) stock?
The financial health rating of LIFE STORAGE INC (LSI) is 2 / 10.
Can you provide the dividend sustainability for LSI stock?
The dividend rating of LIFE STORAGE INC (LSI) is 4 / 10 and the dividend payout ratio is 100.86%.