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%)
We assign a fundamental rating of 4 out of 10 to LSI. LSI was compared to 30 industry peers in the Specialized REITs industry. While LSI belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, LSI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
LSI had positive earnings in the past year.
In the past year LSI had a positive cash flow from operations.
Each year in the past 5 years LSI has been profitable.
LSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.96%, LSI is doing good in the industry, outperforming 73.33% of the companies in the same industry.
LSI's Return On Equity of 10.27% is fine compared to the rest of the industry. LSI outperforms 66.67% of its industry peers.
With a Return On Invested Capital value of 5.20%, LSI perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LSI is in line with the industry average of 4.78%.
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
With a decent Profit Margin value of 33.96%, LSI is doing good in the industry, outperforming 76.67% of the companies in the same industry.
In the last couple of years the Profit Margin of LSI has grown nicely.
LSI has a Operating Margin of 44.13%. This is in the better half 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.
In the last couple of years the Gross Margin of LSI has grown nicely.
| 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.
The number of shares outstanding for LSI has been increased compared to 1 year ago.
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.
With an excellent Altman-Z score value of 2.07, LSI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
LSI has a Debt/Equity ratio of 0.95. This is a neutral value indicating LSI is somewhat dependend on debt financing.
LSI 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 | N/A | ||
| Altman-Z | 2.07 |
ROIC/WACC0.66
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.50 indicates that LSI may have some problems paying its short term obligations.
LSI has a Current ratio of 0.50. This is in the lower half of the industry: LSI underperforms 70.00% of its industry peers.
A Quick Ratio of 0.50 indicates that LSI may have some problems paying its short term obligations.
LSI has a Quick ratio of 0.50. This is in the lower half of the industry: LSI underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
LSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.02%, which is quite impressive.
LSI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.29% yearly.
The Revenue has grown by 26.83% in the past year. This is a very strong growth!
LSI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.40% yearly.
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.
The Revenue is expected to grow by 7.90% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 30.88, which means the current valuation is very expensive for LSI.
LSI's Price/Earnings ratio is in line with the industry average.
LSI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.73 indicates a quite expensive valuation of LSI.
The rest of the industry has a similar Price/Forward Earnings ratio as LSI.
The average S&P500 Price/Forward Earnings ratio is at 23.83. LSI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 26.73 |
4.2 Price Multiples
LSI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LSI is more expensive than 76.67% of the companies 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 an expensive valuation of the company.
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
With a Yearly Dividend Yield of 2.70%, LSI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.77, LSI's dividend is way lower than its industry peers. On top of this 83.33% of the companies listed in the same industry pay a better dividend than LSI!
Compared to an average S&P500 Dividend Yield of 1.87, LSI pays a bit more dividend than the S&P500 average.
| 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.
LSI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP100.86%
EPS Next 2Y8.5%
EPS Next 3Y8.37%
133.1
-1.02 (-0.76%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners0.78%
Ins Owner Change0%
Market Cap11.33B
Revenue(TTM)1.08B
Net Income(TTM)366.16M
Analysts71.43
Price Target143.82 (8.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend4.16
Dividend Growth(5Y)9.59%
DP100.86%
Div Incr Years3
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.82%
Min EPS beat(2)-7.42%
Max EPS beat(2)1.79%
EPS beat(4)3
Avg EPS beat(4)1.63%
Min EPS beat(4)-7.42%
Max EPS beat(4)8.14%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.31%
Min Revenue beat(2)0.96%
Max Revenue beat(2)5.66%
Revenue beat(4)4
Avg Revenue beat(4)3.45%
Min Revenue beat(4)0.96%
Max Revenue beat(4)5.66%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.16%
PT rev (3m)0.95%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)-2.31%
EPS NY rev (3m)-2.31%
Revenue NQ rev (1m)-4.94%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-6.28%
Revenue NY rev (3m)-6.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 26.73 | ||
| P/S | 10.5 | ||
| P/FCF | N/A | ||
| P/OCF | 18.8 | ||
| P/B | 3.18 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 21.93 |
EPS(TTM)4.31
EY3.24%
EPS(NY)4.98
Fwd EY3.74%
FCF(TTM)-1.3
FCFYN/A
OCF(TTM)7.08
OCFY5.32%
SpS12.67
BVpS41.9
TBVpS41.68
PEG (NY)4.8
PEG (5Y)1.39
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 10.27% | ||
| ROCE | N/A | ||
| ROIC | 5.2% | ||
| ROICexc | 5.22% | ||
| ROICexgc | 5.24% | ||
| OM | 44.13% | ||
| PM (TTM) | 33.96% | ||
| GM | 73.35% | ||
| FCFM | N/A |
ROA(3y)3.95%
ROA(5y)4.66%
ROE(3y)7.88%
ROE(5y)9.16%
ROIC(3y)4.37%
ROIC(5y)4.38%
ROICexc(3y)4.42%
ROICexc(5y)4.43%
ROICexgc(3y)4.45%
ROICexgc(5y)4.45%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y5.05%
ROICexgc growth 5Y6.86%
ROICexc growth 3Y5.13%
ROICexc growth 5Y6.9%
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%
F-Score6
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 366.87% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 2.07 |
F-Score6
WACC7.85%
ROIC/WACC0.66
Cap/Depr(3y)559.87%
Cap/Depr(5y)366.07%
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)26.02%
EPS 3Y23.24%
EPS 5Y22.29%
EPS Q2Q%9.09%
EPS Next Y6.43%
EPS Next 2Y8.5%
EPS Next 3Y8.37%
EPS Next 5Y5.56%
Revenue 1Y (TTM)26.83%
Revenue growth 3Y21.79%
Revenue growth 5Y14.4%
Sales Q2Q%17.18%
Revenue Next Year2.51%
Revenue Next 2Y3.8%
Revenue Next 3Y5.26%
Revenue Next 5Y7.9%
EBIT growth 1Y30.73%
EBIT growth 3Y26.76%
EBIT growth 5Y21.66%
EBIT Next Year56.6%
EBIT Next 3Y22.08%
EBIT Next 5Y20.96%
FCF growth 1Y-141.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y87.63%
OCF growth 3Y28.16%
OCF growth 5Y18.74%
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.
What is the valuation status for LSI stock?
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.
Can you provide the PE and PB ratios for LSI stock?
The Price/Earnings (PE) ratio for LIFE STORAGE INC (LSI) is 30.88 and the Price/Book (PB) ratio is 3.18.
What is the earnings growth outlook for LIFE STORAGE INC?
The Earnings per Share (EPS) of LIFE STORAGE INC (LSI) is expected to grow by 6.43% in the next year.