NYSE:PSA

Stock Analysis Report

Executive Summary

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.

Rewards

Trading at 27.8% below its fair value

Earnings are forecast to grow 3.68% per year

Pays a high and reliable dividend of 4.18%

Risk Analysis

No risks detected for PSA from our risk checks.


Snowflake Analysis

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PSA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

19.6%

PSA

15.8%

US REITs

7.2%

US Market


1 Year Return

-8.1%

PSA

-20.1%

US REITs

-10.4%

US Market

Return vs Industry: PSA exceeded the US REITs industry which returned -19.8% over the past year.

Return vs Market: PSA matched the US Market which returned -12.7% over the past year.


Shareholder returns

PSAIndustryMarket
7 Day19.6%15.8%7.2%
30 Day-3.6%-19.2%-12.6%
90 Day-5.3%-24.6%-19.4%
1 Year-4.8%-8.1%-16.8%-20.1%-8.5%-10.4%
3 Year2.3%-8.5%-0.7%-13.1%15.8%8.3%
5 Year22.1%2.3%13.3%-10.2%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSA ($191.52) is trading below our estimate of fair value ($265.29)

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


Price To Earnings Ratio

PE vs Industry: PSA is poor value based on its PE Ratio (26.2x) compared to the REITs industry average (24.1x).

PE vs Market: PSA is poor value based on its PE Ratio (26.2x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: PSA is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: PSA is overvalued based on its PB Ratio (6.7x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Public Storage forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSA's forecast earnings growth (3.7% per year) is above the savings rate (1.7%).

Earnings vs Market: PSA's earnings (3.7% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: PSA's revenue (3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PSA's revenue (3% 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 (25.4%)


Next Steps

Past Performance

How has Public Storage performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSA has high quality earnings.

Growing Profit Margin: PSA's current net profit margins (43.6%) are lower than last year (52.1%).


Past Earnings Growth Analysis

Earnings Trend: PSA's earnings have grown by 8.6% per year over the past 5 years.

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

Earnings vs Industry: PSA had negative earnings growth (-14.5%) over the past year, making it difficult to compare to the REITs industry average (5%).


Return on Equity

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


Next Steps

Financial Health

How is Public 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: PSA has a high level of physical assets or inventory.

Debt Coverage by Assets: PSA's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSA's dividend (4.18%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: PSA's dividend (4.18%) is low compared to the top 25% of dividend payers in the US market (5.49%).


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 (87.2%), PSA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSA's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Joe Russell (59yo)

1.17s

Tenure

US$4,289,200

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 ($USD4.29M) is below average for companies of similar size in the US market ($USD11.74M).

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 Russell
CEO, President & Trustee1.17yrsUS$4.29m0.0028% $931.0k
H. Boyle
CFO & Senior VP1.17yrsUS$3.77m0.0011% $361.7k
Nathaniel Vitan
Senior VP0.83yrUS$1.88m0.000060% $20.1k
Natalia Johnson
Senior VP & Chief Human Resources Officer3.67yrsUS$2.46m0.0011% $381.8k
B. Hughes
Founder & Chairman Emeritusno datano data0.26% $87.8m
Mark Delcher
Senior VP & Chief Information Officerno datano datano data
Ryan Burke
Vice President of Investor Services1.83yrsno datano data
John Sambuco
President of Asset Management11.83yrsno datano data
Steven Lentin
Executive Vice President of Operationsno datano datano data
Michael McGowan
Senior Vice President of Acquisitionsno datano datano data

1.5yrs

Average Tenure

45yo

Average Age

Experienced Management: PSA's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Joseph Russell
CEO, President & Trustee1.17yrsUS$4.29m0.0028% $931.0k
B. Hughes
Founder & Chairman Emeritusno datano data0.26% $87.8m
Ronald Spogli
Independent Trustee10yrsUS$187.20k0.0011% $385.1k
Edward Reyes
1.17yrsUS$120.00k0.073% $24.4m
Ronald Havner
Chairman of the Board Trustees8.58yrsUS$120.00k0.095% $31.9m
Uri Harkham
Independent Trustee27yrsUS$174.70k0.022% $7.5m
B. Hughes
22.17yrsUS$167.20k2.92% $979.6m
Daniel Staton
Independent Trustee21yrsUS$187.20k0.019% $6.5m
Avedick Poladian
Independent Trustee10yrsUS$192.20k0.0097% $3.3m
Gary Pruitt
Lead Independent Trustee9.83yrsUS$202.20k0.0019% $643.0k

10.0yrs

Average Tenure

67yo

Average Age

Experienced Board: PSA's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 company bio, 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$33.491b
  • Market Cap: US$35.212b
  • Shares outstanding: 174.87m
  • Website: https://www.publicstorage.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSANYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1980
PUPDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1980
0KS3LSE (London Stock Exchange)YesCommon StockGBUSDNov 1980
PSA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1980
PSA.PRKNYSE (New York Stock Exchange)PFD K 1/1000USUSDAug 2006
PSA PRLCLNYSE (New York Stock Exchange)PFD L 1/1000THUSUSDNov 2006
PSA.PRVNYSE (New York Stock Exchange)DEP1/1000THPFDUSUSDSep 2012
PSA.PRXNYSE (New York Stock Exchange)DEP 1/1000 PFD XUSUSDMar 2013
PSA.PRBNYSE (New York Stock Exchange)DEP RPST PFD BUSUSDJan 2016
PSA.PRCNYSE (New York Stock Exchange)DEP SHS PFD CUSUSDMay 2016
PSA.PRDNYSE (New York Stock Exchange)DEP SHS PFD DUSUSDJul 2016
PSA.PRENYSE (New York Stock Exchange)PFD BEN INT EUSUSDOct 2016
PSA.PRFNYSE (New York Stock Exchange)PFD SHS F 5.15%USUSDMay 2017
PSA.PRGNYSE (New York Stock Exchange)5.05% CUM PFD GUSUSDAug 2017
PSA.PRHNYSE (New York Stock Exchange)5.60 DEPSHS RP HUSUSDMar 2019
PSA.PRINYSE (New York Stock Exchange)4.875 DPRP PFD IUSUSDSep 2019
PSA.PRJNYSE (New York Stock Exchange)4.7% DP RP PFD JUSUSDNov 2019
PSA.PRKNYSE (New York Stock Exchange)4.75 DP PFD SH KUSUSDDec 2019
P1SA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 5 REPR 1 COMBRBRLJan 2020

Biography

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 December 31, 2019, we had: (i) interests in 2,483 self-storage facilities located in 38 states with approximately 169 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 234 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 December 31, 2019. Our headquarters are located in Glendale, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:13
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.