LIFE STORAGE INC (LSI) Stock Fundamental Analysis
USA - NYSE:LSI - US53223X1072 - REIT
133.1 USD
-1.02 (-0.76%)
133.7 USD
+0.6 (+0.45%)
Taking everything into account, LSI scores 4 out of 10 in our fundamental rating. LSI was compared to 29 industry peers in the Specialized REITs industry. LSI has an excellent profitability rating, but there are concerns on its financial health. 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.
Each year in the past 5 years LSI has been profitable.
Each year in the past 5 years LSI had a positive operating cash flow.
1.2 Ratios
LSI has a better Return On Assets (4.96%) than 73.33% of its industry peers.
With a decent Return On Equity value of 10.27%, LSI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
LSI has a Return On Invested Capital (5.20%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for LSI is in line with the industry average of 4.79%.
The 3 year average ROIC (4.37%) for LSI is below the current ROIC(5.20%), indicating increased profibility in the last year.
| 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.
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.
In the last couple of years the Operating Margin of LSI has grown nicely.
LSI has a Gross Margin (73.35%) which is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
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.
LSI has a Altman-Z score of 2.07. This is amongst the best in the industry. LSI outperforms 83.33% of its industry peers.
LSI has a Debt/Equity ratio of 0.95. This is a neutral value indicating LSI is somewhat dependend on debt financing.
The Debt to Equity ratio of LSI (0.95) is comparable to the rest of the 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.
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.
LSI has a Quick 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.
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.
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
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 30.88, the valuation of LSI can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as LSI.
LSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 26.73 indicates a quite expensive valuation of LSI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LSI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, LSI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 26.73 |
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 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.
The decent profitability rating of LSI 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%.
With a Dividend Yield of 2.70, LSI pays less dividend than the industry average, which is at 5.99. 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 2.38, LSI has a dividend comparable with the average S&P500 company.
| 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.59%
Div Incr Years3
Div Non Decr Years12
5.3 Sustainability
LSI pays out 100.86% of its income as dividend. 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
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
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
ROICexcg growth 3Y5.05%
ROICexcg 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%