PUBLIC STORAGE (PSA)

US74460D1090 - REIT

336.73  +0.88 (+0.26%)

Fundamental Rating

5

PSA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Specialized REITs industry. While PSA has a great profitability rating, there are some minor concerns on its financial health. PSA is valued expensive and it does not seem to be growing.



8

1. Profitability

1.1 Basic Checks

In the past year PSA was profitable.
In the past year PSA had a positive cash flow from operations.
Each year in the past 5 years PSA has been profitable.
In the past 5 years PSA always reported a positive cash flow from operatings.

1.2 Ratios

PSA's Return On Assets of 8.57% is amongst the best of the industry. PSA outperforms 100.00% of its industry peers.
PSA has a better Return On Equity (17.67%) than 82.14% of its industry peers.
PSA has a Return On Invested Capital of 9.18%. This is amongst the best in the industry. PSA outperforms 89.29% of its industry peers.
PSA had an Average Return On Invested Capital over the past 3 years of 9.09%. This is above the industry average of 5.21%.
The 3 year average ROIC (9.09%) for PSA is below the current ROIC(9.18%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.57%
ROE 17.67%
ROIC 9.18%
ROA(3y)14.47%
ROA(5y)12.78%
ROE(3y)26.38%
ROE(5y)21.2%
ROIC(3y)9.09%
ROIC(5y)9.54%

1.3 Margins

Looking at the Profit Margin, with a value of 36.30%, PSA belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
PSA's Profit Margin has declined in the last couple of years.
PSA has a Operating Margin of 47.64%. This is in the better half of the industry: PSA outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of PSA has remained more or less at the same level.
Looking at the Gross Margin, with a value of 73.53%, PSA is in line with its industry, outperforming 57.14% of the companies in the same industry.
PSA's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 47.64%
PM (TTM) 36.3%
GM 73.53%
OM growth 3Y1.73%
OM growth 5Y-0.08%
PM growth 3Y4.61%
PM growth 5Y-4.38%
GM growth 3Y2.02%
GM growth 5Y0.55%

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSA is still creating some value.
The number of shares outstanding for PSA has been increased compared to 1 year ago.
The number of shares outstanding for PSA has been increased compared to 5 years ago.
Compared to 1 year ago, PSA has a worse debt to assets ratio.

2.2 Solvency

PSA has an Altman-Z score of 4.02. This indicates that PSA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.02, PSA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of PSA is 4.48, which is a neutral value as it means it would take PSA, 4.48 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 4.48, PSA belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
PSA has a Debt/Equity ratio of 0.99. This is a neutral value indicating PSA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.99, PSA perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.99
Debt/FCF 4.48
Altman-Z 4.02
ROIC/WACC1.13
WACC8.14%

2.3 Liquidity

A Current Ratio of 0.97 indicates that PSA may have some problems paying its short term obligations.
The Current ratio of PSA (0.97) is better than 67.86% of its industry peers.
A Quick Ratio of 0.97 indicates that PSA may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.97, PSA is doing good in the industry, outperforming 71.43% of the companies in the same industry.
PSA does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 0.97
Quick Ratio 0.97

3

3. Growth

3.1 Past

The earnings per share for PSA have decreased strongly by -11.73% in the last year.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
PSA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.21%.
PSA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.36% yearly.
EPS 1Y (TTM)-11.73%
EPS 3Y20.76%
EPS 5Y7.59%
EPS Q2Q%-32.5%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y15.72%
Revenue growth 5Y10.36%
Sales Q2Q%3.84%

3.2 Future

The Earnings Per Share is expected to grow by 3.84% on average over the next years.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-4.62%
EPS Next 2Y-1.53%
EPS Next 3Y0.9%
EPS Next 5Y3.84%
Revenue Next Year3.46%
Revenue Next 2Y3.49%
Revenue Next 3Y4.34%
Revenue Next 5Y5%

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.

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 34.97 indicates a quite expensive valuation of PSA.
The rest of the industry has a similar Price/Earnings ratio as PSA.
PSA is valuated rather expensively when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.40, which means the current valuation is very expensive for PSA.
PSA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PSA is cheaper than 60.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, PSA is valued a bit more expensive.
Industry RankSector Rank
PE 34.97
Fwd PE 31.4

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PSA is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
PSA's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 27.87
EV/EBITDA 20.12

4.3 Compensation for Growth

The excellent profitability rating of PSA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.6
EPS Next 2Y-1.53%
EPS Next 3Y0.9%

4

5. Dividend

5.1 Amount

PSA has a Yearly Dividend Yield of 3.62%.
PSA's Dividend Yield is slightly below the industry average, which is at 4.54.
Compared to an average S&P500 Dividend Yield of 2.23, PSA pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.62%

5.2 History

The dividend of PSA is nicely growing with an annual growth rate of 7.23%!
PSA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.23%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

PSA pays out 135.62% of its income as dividend. This is not a sustainable payout ratio.
PSA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP135.62%
EPS Next 2Y-1.53%
EPS Next 3Y0.9%

PUBLIC STORAGE

NYSE:PSA (11/22/2024, 11:06:03 AM)

336.73

+0.88 (+0.26%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap58.96B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.62%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 34.97
Fwd PE 31.4
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.6
Profitability
Industry RankSector Rank
ROA 8.57%
ROE 17.67%
ROCE
ROIC
ROICexc
ROICexgc
OM 47.64%
PM (TTM) 36.3%
GM 73.53%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.99
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.97
Quick Ratio 0.97
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-11.73%
EPS 3Y20.76%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.21%
Revenue growth 3Y15.72%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y