Life Storage, Inc.
Life Storage, Inc. Fundamental Analysis
Life Storage, Inc. (LSI) shows weak financial fundamentals with a PE ratio of 43.21, profit margin of 25.51%, and ROE of 7.42%. The company generates $1.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LSI's fundamental strength across five key dimensions:
Efficiency Score
WeakLSI struggles to generate sufficient returns from assets.
Valuation Score
ModerateLSI shows balanced valuation metrics.
Growth Score
ModerateLSI shows steady but slowing expansion.
Financial Health Score
ModerateLSI shows balanced financial health with some risks.
Profitability Score
ModerateLSI maintains healthy but balanced margins.
Key Financial Metrics
Is LSI Expensive or Cheap?
P/E Ratio
LSI trades at 43.21 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LSI's PEG of 0.43 indicates potential undervaluation.
Price to Book
The market values Life Storage, Inc. at 3.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.97 times EBITDA. This signals the market has high growth expectations.
How Well Does LSI Make Money?
Net Profit Margin
For every $100 in sales, Life Storage, Inc. keeps $25.51 as profit after all expenses.
Operating Margin
Core operations generate 45.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.42 in profit for every $100 of shareholder equity.
ROA
Life Storage, Inc. generates $3.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Life Storage, Inc. generates strong operating cash flow of $592.23M, reflecting robust business health.
Free Cash Flow
Life Storage, Inc. generates strong free cash flow of $592.23M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.96 in free cash annually.
FCF Yield
LSI converts 5.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How LSI Stacks Against Its Sector Peers
| Metric | LSI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.21 | 24.23 | Worse (Expensive) |
| ROE | 7.42% | 659.00% | Weak |
| Net Margin | 25.51% | 4497.00% | Weak |
| Debt/Equity | 0.93 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.08 | 13.87 | Weak Liquidity |
| ROA | 3.52% | -1390.00% (disorted) | Weak |
LSI 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 Life Storage, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT