DB:SOV

Stock Analysis Report

Executive Summary

Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self storage facilities.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Life Storage's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

SOV

-0.2%

DE REITs

1.4%

DE Market


1 Year Return

20.0%

SOV

24.9%

DE REITs

3.8%

DE Market

Return vs Industry: SOV underperformed the German REITs industry which returned 24.9% over the past year.

Return vs Market: SOV exceeded the German Market which returned 3.8% over the past year.


Shareholder returns

SOVIndustryMarket
7 Day-1.0%-0.2%1.4%
30 Day1.3%2.9%1.3%
90 Day11.2%9.4%3.1%
1 Year25.0%20.0%29.4%24.9%7.0%3.8%
3 Year43.7%25.5%31.6%13.0%18.5%8.3%
5 Year81.2%47.3%58.2%23.8%42.2%22.9%

Price Volatility Vs. Market

How volatile is Life Storage's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Life Storage undervalued compared to its fair value and its price relative to the market?

20.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOV (€95.5) is trading below our estimate of fair value (€120.51)

Significantly Below Fair Value: SOV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SOV is poor value based on its PE Ratio (24x) compared to the REITs industry average (8.2x).

PE vs Market: SOV is poor value based on its PE Ratio (24x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: SOV is poor value based on its PEG Ratio (8x)


Price to Book Ratio

PB vs Industry: SOV is overvalued based on its PB Ratio (2.4x) compared to the DE REITs industry average (1.6x).


Next Steps

  • Explore potentially undervalued companies in the Real Estate industry.

Future Growth

How is Life Storage forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOV's forecast earnings growth (3% per year) is above the savings rate (0.2%).

Earnings vs Market: SOV's earnings (3% per year) are forecast to grow slower than the German market (12.6% per year).

High Growth Earnings: SOV's earnings are forecast to grow, but not significantly.

Revenue vs Market: SOV's revenue (4.2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: SOV's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SOV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Life Storage performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SOV's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: SOV's earnings growth over the past year (60.8%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: SOV earnings growth over the past year (60.8%) underperformed the REITs industry 103.4%.


Return on Equity

High ROE: SOV's Return on Equity (10.1%) is considered low.


Return on Assets

ROA vs Industry: SOV's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: SOV has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Life Storage's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SOV has a high level of physical assets or inventory.

Debt Coverage by Assets: SOV's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: SOV's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SOV has a sufficient allowance for bad loans.

Low Risk Liabilities: SOV reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SOV has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SOV has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SOV has an appropriate level of bad loans.


Next Steps

Dividend

What is Life Storage's current dividend yield, its reliability and sustainability?

3.72%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SOV's dividend (3.72%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: SOV's dividend (3.72%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: SOV's dividend payments have been volatile in the past 10 years.

Growing Dividend: SOV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.4%), SOV's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SOV's dividends in 3 years are forecast to be thoroughly covered by earnings (1.4% payout ratio).


Next Steps

Management

What is the CEO of Life Storage's salary, the management and board of directors tenure and is there insider trading?

9.8yrs

Average management tenure


CEO

Joe Saffire (49yo)

0.6yrs

Tenure

US$2,433,202

Compensation

Mr. Joseph V. Saffire, also known as Joe, has been Director and Chief Executive Officer at Life Storage, Inc. since March 14, 2019 and March 1, 2019 respectively. Mr. Saffire was Chief Investment Officer o ...


CEO Compensation Analysis

Compensation vs. Market: Joe has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.


Management Age and Tenure

9.8yrs

Average Tenure

51yo

Average Age

Experienced Management: SOV's management team is seasoned and experienced (9.8 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

61yo

Average Age

Experienced Board: SOV's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SOV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$282,88326 Aug 19
Andrew Gregoire
EntityIndividual
Role
Chief Financial Officer
CFO & Secretary
Shares3,000
Max PriceUS$94.29
SellUS$142,13026 Aug 19
Edward Killeen
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,500
Max PriceUS$94.75
SellUS$50,98813 May 19
Arthur Havener
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares598
Max PriceUS$85.26
SellUS$848,93215 Mar 19
David Rogers
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$84.89
SellUS$358,59414 Dec 18
Edward Killeen
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares4,006
Max PriceUS$90.30
SellUS$56,67304 Dec 18
Arthur Havener
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares650
Max PriceUS$87.19
SellUS$413,90505 Nov 18
Kenneth Myszka
EntityIndividual
Shares5,000
Max PriceUS$82.78

Ownership Breakdown


Management Team

  • Ed Killeen (55yo)

    Chief Operating Officer

    • Tenure: 4.8yrs
    • Compensation: US$1.69m
  • Joe, Andy Gregoire (51yo)

    CFO & Secretary

    • Tenure: 7.6yrs
    • Compensation: US$1.69m
  • Joe Saffire (49yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$2.43m
  • Randy Hillman

    Regional Vice President

    • Tenure: 15.8yrs
  • David Paolini

    Vice President of Revenue Management

    • Tenure: 9.8yrs
  • Jeffrey O'Donnell

    Vice President of Information Technology

    • Tenure: 19.8yrs
  • John Rogers

    Vice President of Business Development

    • Tenure: 26.8yrs
  • Jennifer Kozub

    Director of Human Resources

    • Tenure: 20.8yrs
  • Christopher Laczi

    Vice President of Marketing

    • Tenure: 3.8yrs
  • David Dodman

    Vice President of Investor Relations & Strategic Planning

    • Tenure: 0yrs

Board Members

  • Mark Barberio (57yo)

    Non-Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: US$254.72k
  • Dave Rogers (63yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$1.34m
  • Dana Hamilton (50yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$178.70k
  • Charles Lannon (71yo)

    Independent Director

    • Tenure: 24.3yrs
    • Compensation: US$170.97k
  • Ed Pettinella (67yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$175.87k
  • Stephen Rusmisel (73yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$226.59k
  • Carol Hansell (61yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$166.51k
  • Art Havener (52yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$176.59k
  • Joe Saffire (49yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$2.43m

Company Information

Life Storage, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Life Storage, Inc.
  • Ticker: SOV
  • Exchange: DB
  • Founded: 1982
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$5.026b
  • Market Cap: US$4.488b
  • Listing Market Cap: US$4.512b
  • Shares outstanding: 46.80m
  • Website: https://www.lifestorage.com

Number of Employees


Location

  • Life Storage, Inc.
  • 6467 Main Street
  • Williamsville
  • New York
  • 14221
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LSINYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1995
SOVDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1995
SOVDB (Deutsche Boerse AG)ComDEEURAug 2016

Biography

Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self storage facilities. Located in Buffalo, New York, the Company operates more tha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 20:54
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.