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PSA

Public StorageNYSE:PSA Stock Report

Market Cap

US$53.3b

7D

-2.3%

1Y

39.1%

Updated

25 Sep, 2021

Data

Company Financials +
PSA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends5/6

PSA Overview

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities.

Public Storage Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Public Storage
Historical stock prices
Current Share PriceUS$303.88
52 Week HighUS$212.22
52 Week LowUS$332.95
Beta0.12
1 Month Change-3.92%
3 Month Change-0.29%
1 Year Change39.10%
3 Year Change50.71%
5 Year Change36.18%
Change since IPO2,662.55%

Recent News & Updates

Sep 05

Public Storage Remains A High-Conviction REIT Investment

Public Storage has outperformed the S&P 500 this year (so far) by a wide margin as investors rush to buy quality yield. The company hasn't hiked its dividend since 2017 but is finally benefiting from a return in FFO growth. I am looking to add more PSA shares as I am a strong believer in self-storage despite the company's somewhat lofty valuation.

Shareholder Returns

PSAUS REITsUS Market
7D-2.3%-0.9%0.1%
1Y39.1%34.7%35.3%

Return vs Industry: PSA exceeded the US REITs industry which returned 34.7% over the past year.

Return vs Market: PSA exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is PSA's price volatile compared to industry and market?
PSA volatility
PSA Beta0.12
Industry Beta0.83
Market Beta1

Stable Share Price: PSA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: PSA's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19715,400Joe Russellhttps://www.publicstorage.com

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At September 30, 2020, we had: (i) interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the “Shurgard” brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2020. Our headquarters are located in Glendale, California.

Public Storage Fundamentals Summary

How do Public Storage's earnings and revenue compare to its market cap?
PSA fundamental statistics
Market CapUS$53.32b
Earnings (TTM)US$1.27b
Revenue (TTM)US$3.16b

41.9x

P/E Ratio

16.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSA income statement (TTM)
RevenueUS$3.16b
Cost of RevenueUS$857.51m
Gross ProfitUS$2.30b
ExpensesUS$1.03b
EarningsUS$1.27b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.24
Gross Margin72.83%
Net Profit Margin40.28%
Debt/Equity Ratio55.0%

How did PSA perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

83%

Payout Ratio

Valuation

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

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSA ($303.88) is trading below our estimate of fair value ($351.55)

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


Price To Earnings Ratio

PE vs Industry: PSA is good value based on its PE Ratio (41.9x) compared to the US REITs industry average (50.1x).

PE vs Market: PSA is poor value based on its PE Ratio (41.9x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: PSA is poor value based on its PEG Ratio (8.3x)


Price to Book Ratio

PB vs Industry: PSA is overvalued based on its PB Ratio (10.9x) compared to the US REITs industry average (2x).


Future Growth

How is Public Storage forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSA's forecast earnings growth (5.1% per year) is above the savings rate (2%).

Earnings vs Market: PSA's earnings (5.1% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: PSA's revenue (5.5% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: PSA'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: PSA's Return on Equity is forecast to be high in 3 years time (34.9%)


Past Performance

How has Public Storage performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSA has high quality earnings.

Growing Profit Margin: PSA's current net profit margins (40.3%) are lower than last year (41.3%).


Past Earnings Growth Analysis

Earnings Trend: PSA's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: PSA's earnings growth over the past year (3.9%) exceeds its 5-year average (1.3% per year).

Earnings vs Industry: PSA earnings growth over the past year (3.9%) underperformed the REITs industry 3.9%.


Return on Equity

High ROE: PSA's Return on Equity (16.8%) is considered low.


Financial Health

How is Public Storage's financial position?


Financial Position Analysis

Short Term Liabilities: PSA's short term assets ($506.4M) exceed its short term liabilities ($407.4M).

Long Term Liabilities: PSA's short term assets ($506.4M) do not cover its long term liabilities ($5.0B).


Debt to Equity History and Analysis

Debt Level: PSA's debt to equity ratio (55%) is considered high.

Reducing Debt: PSA's debt to equity ratio has increased from 4.7% to 55% over the past 5 years.

Debt Coverage: PSA's debt is well covered by operating cash flow (43.5%).

Interest Coverage: PSA's interest payments on its debt are well covered by EBIT (26.4x coverage).


Balance Sheet


Dividend

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

2.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSA's dividend (2.63%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: PSA's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.4%), PSA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSA's dividends in 3 years are forecast to be covered by earnings (60.4% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Joe Russell (61 yo)

2.67yrs

Tenure

US$4,800,928

Compensation

Mr. Joseph D. Russell Jr., also known as Joe, has been the President at Public Storage since July 1, 2016 and serves as its Chief Executive Officer and Director since January 01, 2019. Mr. Russell served a...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD4.80M) is below average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PSA's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: PSA's board of directors are not considered experienced ( 2.7 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: PSA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Public Storage's employee growth, exchange listings and data sources


Key Information

  • Name: Public Storage
  • Ticker: PSA
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$53.319b
  • Market Cap: US$53.248b
  • Shares outstanding: 175.46m
  • Website: https://www.publicstorage.com

Number of Employees


Location

  • Public Storage
  • 701 Western Avenue
  • Glendale
  • California
  • 91201
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:16
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.