| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
PSB Overview
PS Business Parks, Inc., a member of the S&P MidCap 400, is a REIT that acquires, develops, owns, and operates commercial properties, primarily multi-tenant industrial, flex, and office space.
PS Business Parks Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$158.70 |
| 52 Week High | US$109.26 |
| 52 Week Low | US$165.85 |
| Beta | 0.49 |
| 1 Month Change | 5.48% |
| 3 Month Change | 5.36% |
| 1 Year Change | 35.03% |
| 3 Year Change | 26.22% |
| 5 Year Change | 39.37% |
| Change since IPO | 566.46% |
Recent News & Updates
PS Business Parks: Shareholders Rule This Kingdom
PS Business Parks is a high-quality REIT that carries no debt on its balance sheet. It's seeing strong signs of an uptick in demand, with growth in cash rental rates. I also highlight the dividend, valuation, and show why it's currently a Buy.
The PS Business Parks, Inc. (NYSE:PSB) Analysts Have Been Trimming Their Sales Forecasts
The latest analyst coverage could presage a bad day for PS Business Parks, Inc. ( NYSE:PSB ), with the analysts making...
Shareholder Returns
| PSB | US REITs | US Market | |
|---|---|---|---|
| 7D | 0.2% | -0.8% | -0.5% |
| 1Y | 35.0% | 38.7% | 37.5% |
Return vs Industry: PSB underperformed the US REITs industry which returned 39.9% over the past year.
Return vs Market: PSB underperformed the US Market which returned 36.2% over the past year.
Price Volatility
| PSB volatility | |
|---|---|
| PSB Beta | 0.49 |
| Industry Beta | 0.83 |
| Market Beta | 1 |
Stable Share Price: PSB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: PSB's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1990 | 155 | Mac Chandler | https://www.psbusinessparks.com |
PS Business Parks, Inc., a member of the S&P MidCap 400, is a REIT that acquires, develops, owns, and operates commercial properties, primarily multi-tenant industrial, flex, and office space. As of September 30, 2020, the Company wholly owned 27.5 million rentable square feet with approximately 5,000 commercial customers in six states. The Company also held a 95.0% interest in a 395-unit apartment complex and a 98.2% interest in a development of a 411-unit multifamily apartment complex.
PS Business Parks Fundamentals Summary
| PSB fundamental statistics | |
|---|---|
| Market Cap | US$5.49b |
| Earnings (TTM) | US$130.99m |
| Revenue (TTM) | US$426.26m |
42.2x
P/E Ratio13.0x
P/S RatioIs PSB overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PSB income statement (TTM) | |
|---|---|
| Revenue | US$426.26m |
| Cost of Revenue | US$129.19m |
| Gross Profit | US$297.07m |
| Expenses | US$166.08m |
| Earnings | US$130.99m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 4.76 |
| Gross Margin | 69.69% |
| Net Profit Margin | 30.73% |
| Debt/Equity Ratio | 0% |
How did PSB perform over the long term?
See historical performance and comparisonDividends
2.6%
Current Dividend Yield71%
Payout RatioValuation
Is PS Business Parks undervalued compared to its fair value and its price relative to the market?
13.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PSB ($158.7) is trading below our estimate of fair value ($184.38)
Significantly Below Fair Value: PSB is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PSB is good value based on its PE Ratio (42.2x) compared to the US REITs industry average (49.8x).
PE vs Market: PSB is poor value based on its PE Ratio (42.2x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: PSB is poor value based on its PEG Ratio (6.8x)
Price to Book Ratio
PB vs Industry: PSB is overvalued based on its PB Ratio (6.7x) compared to the US REITs industry average (2x).
Future Growth
How is PS Business Parks forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
6.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSB's forecast earnings growth (6.2% per year) is above the savings rate (2%).
Earnings vs Market: PSB's earnings (6.2% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: PSB's earnings are forecast to grow, but not significantly.
Revenue vs Market: PSB's revenue (0.5% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: PSB's revenue (0.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PSB's Return on Equity is forecast to be low in 3 years time (17%).
Past Performance
How has PS Business Parks performed over the past 5 years?
10.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSB has high quality earnings.
Growing Profit Margin: PSB's current net profit margins (30.7%) are higher than last year (28.7%).
Past Earnings Growth Analysis
Earnings Trend: PSB's earnings have grown by 10.7% per year over the past 5 years.
Accelerating Growth: PSB's earnings growth over the past year (8.3%) is below its 5-year average (10.7% per year).
Earnings vs Industry: PSB earnings growth over the past year (8.3%) exceeded the REITs industry 3.9%.
Return on Equity
High ROE: PSB's Return on Equity (10.8%) is considered low.
Financial Health
How is PS Business Parks's financial position?
Financial Position Analysis
Short Term Liabilities: PSB's short term assets ($168.3M) exceed its short term liabilities ($85.7M).
Long Term Liabilities: PSB's short term assets ($168.3M) exceed its long term liabilities ($3.3M).
Debt to Equity History and Analysis
Debt Level: PSB is debt free.
Reducing Debt: PSB has no debt compared to 5 years ago when its debt to equity ratio was 2.9%.
Debt Coverage: PSB has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: PSB has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is PS Business Parks's current dividend yield, its reliability and sustainability?
2.65%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PSB's dividend (2.65%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: PSB's dividend (2.65%) is low compared to the top 25% of dividend payers in the US market (3.63%).
Stability and Growth of Payments
Stable Dividend: PSB's dividends per share have been stable in the past 10 years.
Growing Dividend: PSB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (70.6%), PSB's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PSB's dividends in 3 years are forecast to be covered by earnings (61.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Mac Chandler (54 yo)
0.42
Tenure
Mr. Dan M. Chandler, III also known as Mac, serves as President and Chief Executive Officer at PS Business Parks, Inc since April 05, 2021 and serves as its Director since April 20, 2021. He served as an E...
Leadership Team
Experienced Management: PSB's management team is considered experienced (3 years average tenure).
Board Members
Experienced Board: PSB's board of directors are considered experienced (5.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PSB 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
PS Business Parks, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: PS Business Parks, Inc.
- Ticker: PSB
- Exchange: NYSE
- Founded: 1990
- Industry: Diversified REITs
- Sector: Real Estate
- Implied Market Cap: US$5.491b
- Market Cap: US$4.340b
- Shares outstanding: 34.85m
- Website: https://www.psbusinessparks.com
Number of Employees
Location
- PS Business Parks, Inc.
- 701 Western Avenue
- Glendale
- California
- 91201
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/23 22:57 |
| End of Day Share Price | 2021/09/23 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.