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PSB

PS Business ParksNYSE:PSB Stock Report

Market Cap

US$5.5b

7D

0.2%

1Y

35.0%

Updated

23 Sep, 2021

Data

Company Financials +
PSB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends5/6

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

Summary of all time highs, changes and price drops for PS Business Parks
Historical stock prices
Current Share PriceUS$158.70
52 Week HighUS$109.26
52 Week LowUS$165.85
Beta0.49
1 Month Change5.48%
3 Month Change5.36%
1 Year Change35.03%
3 Year Change26.22%
5 Year Change39.37%
Change since IPO566.46%

Recent News & Updates

Aug 27

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.

Aug 21
The PS Business Parks, Inc. (NYSE:PSB) Analysts Have Been Trimming Their Sales Forecasts

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

PSBUS REITsUS Market
7D0.2%-0.8%-0.5%
1Y35.0%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

Is PSB's price volatile compared to industry and market?
PSB volatility
PSB Beta0.49
Industry Beta0.83
Market Beta1

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

FoundedEmployeesCEOWebsite
1990155Mac Chandlerhttps://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

How do PS Business Parks's earnings and revenue compare to its market cap?
PSB fundamental statistics
Market CapUS$5.49b
Earnings (TTM)US$130.99m
Revenue (TTM)US$426.26m

42.2x

P/E Ratio

13.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSB income statement (TTM)
RevenueUS$426.26m
Cost of RevenueUS$129.19m
Gross ProfitUS$297.07m
ExpensesUS$166.08m
EarningsUS$130.99m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.76
Gross Margin69.69%
Net Profit Margin30.73%
Debt/Equity Ratio0%

How did PSB perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

71%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:57
End of Day Share Price2021/09/23 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.