Extra Space Storage Inc.
Extra Space Storage Inc. Fundamental Analysis
Extra Space Storage Inc. (EXR) shows weak financial fundamentals with a PE ratio of 31.07, profit margin of 27.82%, and ROE of 6.97%. The company generates $3.4B in annual revenue with weak year-over-year growth of 1.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EXR's fundamental strength across five key dimensions:
Efficiency Score
WeakEXR struggles to generate sufficient returns from assets.
Valuation Score
WeakEXR trades at a premium to fair value.
Growth Score
ModerateEXR shows steady but slowing expansion.
Financial Health Score
WeakEXR carries high financial risk with limited liquidity.
Profitability Score
ModerateEXR maintains healthy but balanced margins.
Key Financial Metrics
Is EXR Expensive or Cheap?
P/E Ratio
EXR trades at 31.07 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EXR's PEG of 12.29 indicates potential overvaluation.
Price to Book
The market values Extra Space Storage Inc. at 2.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.88 times EBITDA. This is generally considered low.
How Well Does EXR Make Money?
Net Profit Margin
For every $100 in sales, Extra Space Storage Inc. keeps $27.82 as profit after all expenses.
Operating Margin
Core operations generate 43.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.97 in profit for every $100 of shareholder equity.
ROA
Extra Space Storage Inc. generates $3.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Extra Space Storage Inc. generates strong operating cash flow of $1.86B, reflecting robust business health.
Free Cash Flow
Extra Space Storage Inc. generates strong free cash flow of $1.76B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.32 in free cash annually.
FCF Yield
EXR converts 5.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How EXR Stacks Against Its Sector Peers
| Metric | EXR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.07 | 22.93 | Worse (Expensive) |
| ROE | 6.97% | 673.00% | Weak |
| Net Margin | 27.82% | 1601500.00% | Weak |
| Debt/Equity | 1.05 | -17.11 (disorted) | Distorted |
| Current Ratio | 0.37 | 22.79 | Weak Liquidity |
| ROA | 3.24% | -939.00% (disorted) | Weak |
EXR outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Extra Space Storage Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.81%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
23.62%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
46.69%
Industry Style: Income, Inflation Hedge, REIT
High Growth