National Storage Affiliates Trust (NSA) - Fairly Valued With Strong Growth Indicators
National Storage Affiliates Trust (NSA) shares moved -46.2% over the last 52 weeks, with a high of $70.04 and a low of $35.37. During this time, the stock lagged the S&P 500 index by -26.4%. National Storage Affiliates Trust is a Maryland real estate investment trust focused on the ownership, operation and acquisition of self storage properties located within the top 100 metropolitan statistical areas throughout the United States. The mid-cap Real Estate company has 1,175 full time employees and is based in Greenwood Village, CO. National Storage Affiliates Trust has returned a 5.7% dividend yield over the last 12 months.
Exceptional Track Record of Eps Growth at the Expense of a Highly Leveraged Balance Sheet:
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $331 | $388 | $432 | $586 |
| Revenue Growth | n/a | 17.2% | 11.4% | 35.5% |
| Operating Margins | 30.72% | 32.7% | 34.04% | 37.26% |
| Operating Margins Growth | n/a | 6.45% | 4.1% | 9.46% |
| Net Margins | 4.26% | 1.03% | 11.25% | 17.97% |
| Net Margins Growth | n/a | -75.82% | 992.23% | 59.73% |
| Earnings Per Share | $0.07 | $-0.15 | $0.53 | $0.98 |
| EPS Growth | n/a | -314.29% | 453.33% | 84.91% |
| Free Cash Flow (MM) | $142 | $175 | $204 | $303 |
| FCF Growth | n/a | 23.05% | 16.38% | 48.78% |
| Capital Expenditures (MM) | $-19 | $-21 | $-17 | $-28 |
| Net Debt / EBITDA | 6.68 | 6.65 | 7.21 | 7.65 |
The Market Is Fairly Valuing National Storage Affiliates Trust :
Compared to the Real Estate sector's average of 27.16, National Storage Affiliates Trust has a trailing twelve month price to earnings (P/E) ratio of 39.7 and, based on its Eps guidance of 1.27, an expected P/E ratio of 28.8. The firm's price to earnings growth (PEG) is 3.69, which indicates that it is overvalued in terms of its expected rate of earnings growth. . National Storage Affiliates Trust's price to book (P/B) ratio is 2.3 compared to its sector average of 2.39.
As of the date of publication, the company's shares are trading 99.3% above their fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 0.92 * 16.219) = $18.32
National Storage Affiliates Trust Is the Subject of Mixed Market Indicators :
11 analysts are following National Storage Affiliates Trust and have set target prices ranging from $40 to $53 per share. On average, they have given the company a rating of buy. At the current price of $36.52, NSA is trading -19.98% away from its average analyst target price of $45.64 per share, implying an analyst consensus of some upside potential for the stock. The company has an average amount of shares sold short since 3.6% of the company's shares are tied to short positions. Institutions own 89.1% of National Storage Affiliates Trust's shares, while the insider ownership rate stands at 7.68%. The biggest shareholder is the Vanguard Group, Inc. with a 14.50% stake in the company worth approximately $481,131,394.00.
