Today we're going to take a closer look at Large-Cap Real Estate company Extra Space Storage Inc, whose shares are currently trading at $136.97. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Extra Space Storage Inc's Valuation Is in Line With Its Sector Averages:
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 company belongs to the Real Estate sector, which has an average price to earnings (P/E) ratio of 27.31 and an average price to book (P/B) ratio of 1.94. In contrast, Extra Space Storage Inc has a trailing 12 month P/E ratio of 29.8 and a P/B ratio of 2.11.
Extra Space Storage Inc has moved -16.8% over the last year compared to 16.7% for the S&P 500 — a difference of -33.5%. Extra Space Storage Inc has a 52 week high of $184.87 and a 52 week low of $121.03.
Strong Revenue Growth and Healthy Leverage Levels:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,308 | $1,356 | $1,577 | $1,924 | $2,560 | $3,257 |
| Operating Margins | 49% | 49% | 62% | 55% | 46% | 41% |
| Net Margins | 32% | 36% | 52% | 45% | 31% | 26% |
| Net Income (M) | $420 | $482 | $828 | $861 | $803 | $855 |
| Net Interest Expense (M) | $23 | $17 | $166 | $219 | $419 | $499 |
| Depreciation & Amort. (M) | $220 | $224 | $242 | $288 | $506 | $783 |
| Diluted Shares (M) | 136 | 130 | 140 | 142 | 169 | 212 |
| Earnings Per Share | $3.24 | $3.71 | $6.19 | $6.41 | $4.74 | $4.03 |
| EPS Growth | n/a | 14.51% | 66.85% | 3.55% | -26.05% | -14.98% |
| Avg. Price | $93.04 | $93.63 | $151.18 | $181.97 | $160.33 | $136.62 |
| P/E Ratio | 28.45 | 25.24 | 24.38 | 28.39 | 33.82 | 33.9 |
| Free Cash Flow (M) | $654 | $704 | $896 | $1,176 | $1,302 | $1,408 |
| CAPEX (M) | $54 | $67 | $56 | $62 | $100 | $479 |
| EV / EBITDA | 19.5 | 14.17 | 16.92 | 18.81 | 13.39 | 14.39 |
| Total Debt (M) | $4,888 | $594 | $719 | $858 | $905 | $1,551 |
| Net Debt / EBITDA | 5.64 | 0.54 | 0.53 | 0.57 | 0.48 | 0.67 |
Extra Space Storage Inc has rapidly growing revenues and increasing reinvestment in the business and generally positive cash flows. Additionally, the company's financial statements display positive EPS growth and healthy leverage levels. Furthermore, Extra Space Storage Inc has decent operating margins with a stable trend.
