| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 5/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$303.88 |
| 52 Week High | US$212.22 |
| 52 Week Low | US$332.95 |
| Beta | 0.12 |
| 1 Month Change | -3.92% |
| 3 Month Change | -0.29% |
| 1 Year Change | 39.10% |
| 3 Year Change | 50.71% |
| 5 Year Change | 36.18% |
| Change since IPO | 2,662.55% |
Recent News & Updates
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
| PSA | US REITs | US Market | |
|---|---|---|---|
| 7D | -2.3% | -0.9% | 0.1% |
| 1Y | 39.1% | 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
| PSA volatility | |
|---|---|
| PSA Beta | 0.12 |
| Industry Beta | 0.83 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1971 | 5,400 | Joe Russell | https://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
| PSA fundamental statistics | |
|---|---|
| Market Cap | US$53.32b |
| Earnings (TTM) | US$1.27b |
| Revenue (TTM) | US$3.16b |
41.9x
P/E Ratio16.9x
P/S RatioIs PSA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PSA income statement (TTM) | |
|---|---|
| Revenue | US$3.16b |
| Cost of Revenue | US$857.51m |
| Gross Profit | US$2.30b |
| Expenses | US$1.03b |
| Earnings | US$1.27b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 7.24 |
| Gross Margin | 72.83% |
| Net Profit Margin | 40.28% |
| Debt/Equity Ratio | 55.0% |
How did PSA perform over the long term?
See historical performance and comparisonDividends
2.6%
Current Dividend Yield83%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/25 22:16 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.