NYSE:LSI

Stock Analysis Report

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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. More Details


Snowflake Analysis

Established dividend payer and fair value.


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

Stable Share Price: LSI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LSI's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

LSI

2.2%

US REITs

1.4%

US Market


1 Year Return

6.5%

LSI

-11.1%

US REITs

22.6%

US Market

Return vs Industry: LSI exceeded the US REITs industry which returned -9.9% over the past year.

Return vs Market: LSI underperformed the US Market which returned 22.8% over the past year.


Shareholder returns

LSIIndustryMarket
7 Day0.8%2.2%1.4%
30 Day1.6%1.5%4.9%
90 Day4.1%5.4%14.6%
1 Year10.9%6.5%-6.9%-11.1%25.4%22.6%
3 Year62.6%43.7%24.6%9.3%46.8%37.0%
5 Year38.1%11.5%55.4%23.6%132.0%106.1%

Long-Term 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

Valuation

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

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LSI ($121.16) is trading below our estimate of fair value ($153.31)

Significantly Below Fair Value: LSI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LSI is good value based on its PE Ratio (37x) compared to the US REITs industry average (38.5x).

PE vs Market: LSI is poor value based on its PE Ratio (37x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: LSI is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: LSI is overvalued based on its PB Ratio (2.6x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

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

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSI's forecast earnings growth (8.3% per year) is above the savings rate (2%).

Earnings vs Market: LSI's earnings (8.3% per year) are forecast to grow slower than the US market (21.6% per year).

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

Revenue vs Market: LSI's revenue (5.5% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: LSI's revenue (5.5% 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 LSI'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?

22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSI has high quality earnings.

Growing Profit Margin: LSI's current net profit margins (25.5%) are lower than last year (53.9%).


Past Earnings Growth Analysis

Earnings Trend: LSI's earnings have grown significantly by 22.9% per year over the past 5 years.

Accelerating Growth: LSI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LSI had negative earnings growth (-50%) over the past year, making it difficult to compare to the REITs industry average (2.9%).


Return on Equity

High ROE: LSI's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Life Storage's financial position?


Financial Position Analysis

Short Term Liabilities: LSI's short term assets ($143.0M) exceed its short term liabilities ($91.0M).

Long Term Liabilities: LSI's short term assets ($143.0M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: LSI's debt to equity ratio (100.6%) is considered high.

Reducing Debt: LSI's debt to equity ratio has increased from 75.7% to 100.6% over the past 5 years.

Debt Coverage: LSI's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: LSI's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LSI's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: LSI's dividend (3.66%) is low compared to the top 25% of dividend payers in the US market (3.86%).


Stability and Growth of Payments

Stable Dividend: LSI's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.7%), LSI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LSI's dividends in 3 years are forecast to be covered by earnings (62.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.0yrs

Average management tenure


CEO

Joe Saffire (50 yo)

1.83yrs

Tenure

US$3,503,173

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's total compensation ($USD3.50M) is below average for companies of similar size in the US market ($USD6.22M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Saffire
CEO & Director1.83yrsUS$3.50m0.074%
$ 4.4m
Andrew Gregoire
CFO & Secretary8.83yrsUS$1.69m0.15%
$ 8.7m
Edward Killeen
Chief Operating Officer6yrsUS$1.65m0.10%
$ 6.2m
David Dodman
Vice President of Investor Relations & Strategic Planningno datano datano data
John Rogers
Vice President of Business Development28yrsno datano data
Christopher Laczi
Vice President of Marketing5.08yrsno datano data
Jennifer Kozub
Director of Human Resources22yrsno datano data
Randy Hillman
Regional Vice President17yrsno datano data
David Paolini
Vice President of Revenue Management11yrsno datano data
Jeffrey O'Donnell
Vice President of Information Technology21yrsno datano data
Christopher Runckel
Regional Vice President10yrsno datano data
Kevin Driscoll
Vice President of Finance16yrsno datano data

11.0yrs

Average Tenure

52yo

Average Age

Experienced Management: LSI's management team is seasoned and experienced (11 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Saffire
CEO & Director1.83yrsUS$3.50m0.074%
$ 4.4m
Mark Barberio
Independent Non-Executive Chairman2.67yrsUS$270.71k0.021%
$ 1.3m
David Rogers
Director2.83yrsUS$893.52k0.25%
$ 14.6m
Dana Hamilton
Independent Director2.83yrsUS$215.71k0.0052%
$ 310.9k
Charles Lannon
Independent Director25.58yrsUS$215.71k0.24%
$ 14.0m
Edward Pettinella
Independent Director2.83yrsUS$213.21k0.027%
$ 1.6m
Stephen Rusmisel
Independent Director8.67yrsUS$223.21k0.017%
$ 994.9k
Arthur Havener
Independent Director6yrsUS$223.21k0.018%
$ 1.1m

2.8yrs

Average Tenure

61yo

Average Age

Experienced Board: LSI's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Life Storage, Inc.
  • Ticker: LSI
  • Exchange: NYSE
  • Founded: 1982
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$5.933b
  • Market Cap: US$5.903b
  • Shares outstanding: 48.74m
  • 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

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 Analysis2021/01/21 23:09
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.