Extra Space Storage logged a 0.6% change during today's morning session, and is now trading at a price of $159.81 per share.
Extra Space Storage shares moved -25.3% over the last 52 weeks, with a high of $222.36 and a low of $139.97. During this time, the stock lagged the S&P 500 index by -20.0%. As of January 2022, the company's 50-day average price is $160.39. Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. The large-cap Real Estate company has 4,781 full time employees and is based in Salt Lake City, UT. Extra Space Storage has returned a 3.8% dividend yield over the last 12 months.
Snapshot of the Company's Strong operating Margins:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $1,308 | $1,356 | $1,577 | $1,924 |
| Revenue Growth | n/a | 3.65% | 16.31% | 21.99% |
| Operating Margins | 48.4% | 47.8% | 53.0% | 53.9% |
| Operating Margins Growth | n/a | -1.24% | 10.88% | 1.7% |
| Earnings Per Share | $3.24 | $3.71 | $6.19 | $6.22 |
| EPS Growth | n/a | 14.51% | 66.85% | 0.48% |
| Diluted Shares (MM) | 136 | 130 | 140 | 135 |
| Free Cash Flow (MM) | $700 | $764 | $949 | $1,215 |
| FCF Growth | n/a | 9.17% | 24.16% | 28.09% |
| Capital Expenditures (MM) | -$8 | -$7 | -$4 | -$23 |
| Net Debt / EBITDA | 5.71 | 6.19 | 5.05 | 5.04 |
Extra Space Storage Is Too Expensive at Current Levels:
Compared to the Real Estate sector's average of 24.81, Extra Space Storage has a trailing twelve month P/E ratio of 25.7 and, according to its EPS guidance of 6.33, an expected P/E ratio of 25.2. Extra Space Storage's PEG ratio is 1.41 based on its 18.2% compound average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 14.3%, because the growth rate implied by Extra Space Storage's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 1.8, which suggests that the company's shares are actually overvalued.
Extra Space Storage's P/B ratio is 6.6 compared to its sector average of 2.24. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 210.4% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 4.84 * 24.34) = $51.48
Extra Space Storage Benefits From Positive Market Indicators:
10 analysts are following Extra Space Storage and have set target prices ranging from $145.0 to $197.0 per share. On average, they have given the company a rating of buy. At the current price of $159.81, EXR is trading -7.41% away from its average analyst target price of $172.6 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 4.3% of the company's shares are tied to short positions. Institutions own 98.5% of Extra Space Storage's shares, while the insider ownership rate stands at 1.55%. The biggest shareholder is the Vanguard Group, Inc. with a 17% stake in the company worth approximately $3,568,738,310.
