Take This Into Account Before Investing in EXR

Now trading at a price of $130.46, Extra Space Storage has moved 0.7% so far today.

Extra Space Storage returned losses of -15.0% 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 -30.0%. As of April 2023, the company's 50-day average price was $117.6. 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 4.1% 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.

Extra Space Storage's Valuation Is in Line With Its Sector Averages:

Extra Space Storage has a trailing twelve month P/E ratio of 22.2, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $5.22, the company has a forward P/E ratio of 22.5. Extra Space Storage's PEG ratio is 2.54 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. In contrast, the market is likely undervaluing Extra Space Storage in terms of its equity because its P/B ratio is 1.9 while the sector average is 2.24. The company's shares are currently trading 133.7% above their Graham number.

Analysts Give Extra Space Storage an Average Rating of Hold:

The 13 analysts following Extra Space Storage have set target prices ranging from $115.0 to $172.0 per share, for an average of $139.15 with a hold rating. As of April 2023, the company is trading -15.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Extra Space Storage has an average amount of shares sold short because 3.6% 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 $2,822,002,452.

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.