EXR Investors - Our Quick Report For You.

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.