PUBLIC STORAGE (PSA)
US74460D1090 - REIT
We assign a fundamental rating of 5 out of 10 to PSA. PSA was compared to 28 industry peers in the Specialized REITs industry. PSA scores excellent on profitability, but there are some minor concerns on its financial health. PSA is valued expensive and it does not seem to be growing.
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.
PSA had positive earnings in each of the past 5 years.
Each year in the past 5 years PSA had a positive operating cash flow.
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's Return On Equity of 17.67% is amongst the best of the industry. PSA outperforms 82.14% of its industry peers.
The Return On Invested Capital of PSA (9.18%) is better than 89.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PSA is above the industry average of 5.21%.
The last Return On Invested Capital (9.18%) for PSA is above the 3 year average (9.09%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
PSA has a better Profit Margin (36.30%) than 85.71% of its industry peers.
PSA's Profit Margin has declined in the last couple of years.
PSA's Operating Margin of 47.64% is fine compared to the rest of the industry. PSA outperforms 75.00% of its industry peers.
PSA's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 73.53%, PSA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Gross Margin of PSA has remained more or less at the same level.
| Industry Rank | Sector 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%
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.
Compared to 1 year ago, PSA has more shares outstanding
PSA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PSA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.65 indicates that PSA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.65, PSA belongs to the top 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.
PSA has a better Debt to FCF ratio (4.48) than 96.43% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that PSA is somewhat dependend on debt financing.
PSA's Debt to Equity ratio of 0.99 is in line compared to the rest of the industry. PSA outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.12
WACC8.2%
2.3 Liquidity
PSA has a Current Ratio of 0.97. This is a bad value and indicates that PSA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.97, PSA is doing good in the industry, outperforming 67.86% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that PSA may have some problems paying its short term obligations.
PSA's Quick ratio of 0.97 is fine compared to the rest of the industry. PSA outperforms 71.43% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
PSA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.73%.
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
Based on estimates for the next years, PSA will show a small growth in Earnings Per Share. The EPS will grow by 3.14% on average per year.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y-6.84%
EPS Next 2Y-1.68%
EPS Next 3Y0.66%
EPS Next 5Y3.14%
Revenue Next Year3.55%
Revenue Next 2Y3.34%
Revenue Next 3Y3.83%
Revenue Next 5Y4.66%
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.
4. Valuation
4.1 Price/Earnings Ratio
PSA is valuated quite expensively with a Price/Earnings ratio of 30.72.
Compared to the rest of the industry, the Price/Earnings ratio of PSA indicates a somewhat cheap valuation: PSA is cheaper than 60.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.48. PSA is around the same levels.
With a Price/Forward Earnings ratio of 27.67, PSA can be considered very expensive at the moment.
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 23.73, PSA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.72 | ||
| Fwd PE | 27.67 |
4.2 Price Multiples
PSA's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PSA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.49 | ||
| EV/EBITDA | 18.27 |
4.3 Compensation for Growth
The excellent profitability rating of PSA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.04
EPS Next 2Y-1.68%
EPS Next 3Y0.66%
5. Dividend
5.1 Amount
PSA has a Yearly Dividend Yield of 4.05%, which is a nice return.
Compared to an average industry Dividend Yield of 4.85, PSA is paying slightly less dividend.
PSA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
5.2 History
On average, the dividend of PSA grows each year by 7.23%, which is quite nice.
PSA has paid a dividend for at least 10 years, which is a reliable track record.
PSA has decreased its dividend recently.
Dividend Growth(5Y)7.23%
Div Incr Years0
Div Non Decr Years1
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-1.68%
EPS Next 3Y0.66%
PUBLIC STORAGE
NYSE:PSA (1/6/2025, 5:05:00 PM)
After market: 295.83 0 (0%)295.83
-4.62 (-1.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners80.95%
Inst Owner Change0%
Ins Owners10.11%
Ins Owner Change1.3%
Market Cap51.80B
Analysts73.33
Price Target358.92 (21.33%)
Short Float %2.41%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Dividend Growth(5Y)7.23%
DP135.62%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.29%
Min EPS beat(2)-17.82%
Max EPS beat(2)1.25%
EPS beat(4)2
Avg EPS beat(4)-8.06%
Min EPS beat(4)-19.79%
Max EPS beat(4)4.13%
EPS beat(8)4
Avg EPS beat(8)-5.36%
EPS beat(12)8
Avg EPS beat(12)5.55%
EPS beat(16)11
Avg EPS beat(16)6.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-1.49%
Max Revenue beat(2)-0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-1.49%
Max Revenue beat(4)0.07%
Revenue beat(8)2
Avg Revenue beat(8)-0.5%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)9
Avg Revenue beat(16)0.68%
PT rev (1m)1.21%
PT rev (3m)3.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)-1.67%
EPS NY rev (3m)-3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.72 | ||
| Fwd PE | 27.67 | ||
| P/S | 11.07 | ||
| P/FCF | 24.49 | ||
| P/OCF | 16.44 | ||
| P/B | 5.39 | ||
| P/tB | 5.56 | ||
| EV/EBITDA | 18.27 |
EPS(TTM)9.63
EY3.26%
EPS(NY)10.69
Fwd EY3.61%
FCF(TTM)12.08
FCFY4.08%
OCF(TTM)18
OCFY6.08%
SpS26.71
BVpS54.88
TBVpS53.2
PEG (NY)N/A
PEG (5Y)4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.57% | ||
| ROE | 17.67% | ||
| ROCE | 11.62% | ||
| ROIC | 9.18% | ||
| ROICexc | 9.47% | ||
| ROICexgc | 9.77% | ||
| OM | 47.64% | ||
| PM (TTM) | 36.3% | ||
| GM | 73.53% | ||
| FCFM | 45.23% |
ROA(3y)14.47%
ROA(5y)12.78%
ROE(3y)26.38%
ROE(5y)21.2%
ROIC(3y)9.09%
ROIC(5y)9.54%
ROICexc(3y)9.43%
ROICexc(5y)9.87%
ROICexgc(3y)9.74%
ROICexgc(5y)10.21%
ROCE(3y)11.51%
ROCE(5y)12.08%
ROICexcg growth 3Y-1.07%
ROICexcg growth 5Y-2.44%
ROICexc growth 3Y-1.12%
ROICexc growth 5Y-2.47%
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%
F-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 4.48 | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 91.13% | ||
| Cap/Sales | 22.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.65% | ||
| Profit Quality | 124.6% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 3.65 |
F-Score5
WACC8.2%
ROIC/WACC1.12
Cap/Depr(3y)363.71%
Cap/Depr(5y)295.33%
Cap/Sales(3y)76.43%
Cap/Sales(5y)60.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.73%
EPS 3Y20.76%
EPS 5Y7.59%
EPS Q2Q%-32.5%
EPS Next Y-6.84%
EPS Next 2Y-1.68%
EPS Next 3Y0.66%
EPS Next 5Y3.14%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y15.72%
Revenue growth 5Y10.36%
Sales Q2Q%3.84%
Revenue Next Year3.55%
Revenue Next 2Y3.34%
Revenue Next 3Y3.83%
Revenue Next 5Y4.66%
EBIT growth 1Y-3.6%
EBIT growth 3Y17.73%
EBIT growth 5Y10.27%
EBIT Next Year44.31%
EBIT Next 3Y15.84%
EBIT Next 5Y10.73%
FCF growth 1Y667.93%
FCF growth 3Y29.78%
FCF growth 5Y6.8%
OCF growth 1Y1.34%
OCF growth 3Y16.7%
OCF growth 5Y9.49%