LIFE STORAGE INC (LSI) Fundamental Analysis & Valuation

NYSE:LSI • US53223X1072

Current stock price

133.1 USD
-1.02 (-0.76%)
At close:
133.7 USD
+0.6 (+0.45%)
After Hours:

This LSI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. LSI Profitability Analysis

1.1 Basic Checks

  • LSI had positive earnings in the past year.
  • In the past year LSI had a positive cash flow from operations.
LSI Yearly Net Income VS EBIT VS OCF VS FCFLSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M -500M -1B

1.2 Ratios

  • LSI has a better Return On Assets (4.96%) than 73.33% of its industry peers.
  • LSI has a better Return On Equity (10.27%) than 66.67% of its industry peers.
  • LSI's Return On Invested Capital of 5.20% is in line compared to the rest of the industry. LSI outperforms 60.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LSI is in line with the industry average of 5.05%.
  • The 3 year average ROIC (4.37%) for LSI is below the current ROIC(5.20%), indicating increased profibility in the last year.
Industry RankSector 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%
LSI Yearly ROA, ROE, ROICLSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2 4 6 8 10

1.3 Margins

  • LSI has a better Profit Margin (33.96%) than 76.67% of its industry peers.
  • LSI's Profit Margin has improved in the last couple of years.
  • LSI has a better Operating Margin (44.13%) than 76.67% of its industry peers.
  • In the last couple of years the Operating Margin of LSI has grown nicely.
  • 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 RankSector 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%
LSI Yearly Profit, Operating, Gross MarginsLSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 20 40 60

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2

2. LSI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
LSI Yearly Shares OutstandingLSI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
LSI Yearly Total Debt VS Total AssetsLSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 2.07 indicates that LSI is not a great score, but indicates 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.
  • A Debt/Equity ratio of 0.95 indicates that LSI is somewhat dependend on debt financing.
  • LSI's Debt to Equity ratio of 0.95 is in line compared to the rest of the industry. LSI outperforms 56.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF N/A
Altman-Z 2.07
ROIC/WACC0.66
WACC7.85%
LSI Yearly LT Debt VS Equity VS FCFLSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B -1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 0.50 indicates that LSI may have some problems paying its short term obligations.
  • LSI has a worse Current ratio (0.50) 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 RankSector Rank
Current Ratio 0.5
Quick Ratio 0.5
LSI Yearly Current Assets VS Current LiabilitesLSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. LSI Growth Analysis

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.
  • The Earnings Per Share has been growing by 22.29% on average over the past years. This is a very strong growth
  • Looking at the last year, LSI shows a very strong growth in Revenue. 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

  • The Earnings Per Share is expected to grow by 5.56% on average over the next years.
  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LSI Yearly Revenue VS EstimatesLSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
LSI Yearly EPS VS EstimatesLSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4 5

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1

4. LSI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 30.88, LSI can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of LSI is on the same level as its industry peers.
  • LSI is valuated rather expensively when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 26.73, the valuation of LSI can be described as expensive.
  • LSI's Price/Forward Earnings is on the same level as the industry average.
  • LSI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.83.
Industry RankSector Rank
PE 30.88
Fwd PE 26.73
LSI Price Earnings VS Forward Price EarningsLSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, LSI is valued a bit more expensive than 76.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 21.93
LSI Per share dataLSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. LSI Dividend Analysis

5.1 Amount

  • LSI has a Yearly Dividend Yield of 2.70%.
  • Compared to an average industry Dividend Yield of 5.49, 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 1.91, LSI pays a bit more dividend than the S&P500 average.
Industry RankSector 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
LSI Yearly Dividends per shareLSI Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 1 2 3 4

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%
LSI Yearly Income VS Free CF VS DividendLSI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 -500M -1B
LSI Dividend Payout.LSI Dividend Payout, showing the Payout Ratio.LSI Dividend Payout.PayoutRetained Earnings

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LSI Fundamentals: All Metrics, Ratios and Statistics

LIFE STORAGE INC

NYSE:LSI (7/19/2023, 8:23:04 PM)

After market: 133.7 +0.6 (+0.45%)

133.1

-1.02 (-0.76%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)05-02
Earnings (Next)08-01
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis 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%.