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 30 industry peers in the Specialized REITs industry. LSI has an excellent profitability rating, but 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.
LSI had a positive operating cash flow in the past year.
LSI had positive earnings in each of the past 5 years.
In the past 5 years LSI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LSI (4.96%) is better 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.
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 4.77%.
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
LSI has a Profit Margin of 33.96%. This is in the better half of the industry: LSI outperforms 76.67% of its industry peers.
In the last couple of years the Profit Margin of LSI has grown nicely.
Looking at the Operating Margin, with a value of 44.13%, LSI is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
LSI's Operating Margin has improved in the last couple of years.
LSI has a Gross Margin of 73.35%. This is comparable to the rest of the industry: LSI outperforms 50.00% of its industry peers.
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
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
The debt/assets ratio for LSI is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 2.07, LSI belongs to the top 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 of 0.95. This is comparable to the rest of the industry: LSI outperforms 56.67% of 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
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's Current ratio of 0.50 is on the low side compared to the rest of the industry. LSI is outperformed by 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
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.
Looking at the last year, LSI shows a very strong growth in Revenue. The Revenue has grown by 26.83%.
The Revenue has been growing by 14.40% on average over the past years. This is quite good.
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.
Based on estimates for the next years, LSI will show a small growth in Revenue. The Revenue will grow by 7.90% on average per year.
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
LSI is valuated quite expensively with a Price/Earnings ratio of 30.88.
LSI's Price/Earnings ratio is in line with the industry average.
LSI is valuated rather expensively when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.73, which means the current valuation is very expensive for LSI.
LSI's Price/Forward Earnings ratio is in line with the industry average.
LSI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| 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%.
With a Dividend Yield of 2.70, LSI pays less dividend than the industry average, which is at 6.26. 83.33% of the companies listed in the same industry pay a better dividend than LSI!
LSI's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
On average, the dividend of LSI grows each year by 9.59%, which is quite nice.
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
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%
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.