Extra Space Storage logged a -0.8% change during today's morning session, and is now trading at a price of $106.16 per share.
Extra Space Storage returned losses of -29.0% last year, with its stock price reaching a high of $170.3 and a low of $101.19. Over the same period, the stock underperformed the S&P 500 index by -45.0%. As of April 2023, the company's 50-day average price was $119.34. 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. Based in Salt Lake City, UT, the large-cap Real Estate company has 4,781 full time employees. Extra Space Storage has offered a 5.8% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $1,197 | $1,308 | $1,356 | $1,577 | $1,924 | $2,020 |
| Operating Margins | 52.0% | 49.0% | 49.0% | 62.0% | 55.0% | 53.0% |
| Net Margins | 37.0% | 34.0% | 38.0% | 56.0% | 48.0% | 44.0% |
| Net Income (MM) | $447 | $451 | $518 | $878 | $921 | $880 |
| Earnings Per Share | $3.27 | $3.24 | $3.71 | $6.19 | $6.41 | $6.13 |
| Diluted Shares (MM) | 133 | 136 | 130 | 140 | 142 | 144 |
| Free Cash Flow (MM) | $617 | $654 | $704 | $896 | $1,176 | $1,157 |
| Capital Expenditures (MM) | $61 | $54 | $67 | $56 | $62 | $70 |
| Net Current Assets (MM) | -$5,063 | -$5,611 | -$6,460 | -$6,689 | -$8,089 | -$8,330 |
| Long Term Debt (MM) | $5,042 | $5,587 | $6,432 | $6,658 | $8,057 | $8,297 |
| Net Debt / EBITDA | 11.01 | 11.51 | 12.49 | 6.49 | 6.91 | 6.87 |
Extra Space Storage has growing revenues and a flat capital expenditure trend and strong margins with a stable trend. Additionally, the company's financial statements display a strong EPS growth trend and generally positive cash flows. However, the firm has a highly leveraged balance sheet.
A Lower P/E Ratio Than Its Sector Average but Trades Above Its Graham Number:
Extra Space Storage has a trailing twelve month P/E ratio of 19.5, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $5.72, the company has a forward P/E ratio of 20.9. Extra Space Storage's PEG ratio is 2.23 on the basis of the 8.7% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Extra Space Storage is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.4 is higher than the sector average of 2.24. The company's shares are currently trading 90.1% above their Graham number.
Analysts Give Extra Space Storage an Average Rating of Buy:
The 12 analysts following Extra Space Storage have set target prices ranging from $115.0 to $185.0 per share, for an average of $152.42 with a buy rating. As of April 2023, the company is trading -21.7% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Extra Space Storage has an average amount of shares sold short because 3.9% of the company's shares are sold short. Institutions own 63.1% of the company's shares, and the insider ownership rate stands at 1.05%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $2,296,256,718.
