PS Business Parks, Inc.
PS Business Parks, Inc. Fundamental Analysis
PS Business Parks, Inc. (PSB-PY) shows moderate financial fundamentals with a PE ratio of 9.45, profit margin of 1.25%, and ROE of 31.42%. The company generates $3.9B 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 86.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PSB-PY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPSB-PY demonstrates superior asset utilization.
Valuation Score
ExcellentPSB-PY trades at attractive valuation levels.
Growth Score
ModeratePSB-PY shows steady but slowing expansion.
Financial Health Score
ModeratePSB-PY shows balanced financial health with some risks.
Profitability Score
ModeratePSB-PY maintains healthy but balanced margins.
Key Financial Metrics
Is PSB-PY Expensive or Cheap?
P/E Ratio
PSB-PY trades at 9.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PSB-PY's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values PS Business Parks, Inc. at 2.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.01 times EBITDA. This is generally considered low.
How Well Does PSB-PY Make Money?
Net Profit Margin
For every $100 in sales, PS Business Parks, Inc. keeps $1.25 as profit after all expenses.
Operating Margin
Core operations generate 1.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.42 in profit for every $100 of shareholder equity.
ROA
PS Business Parks, Inc. generates $25.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PS Business Parks, Inc. generates strong operating cash flow of $2.70B, reflecting robust business health.
Free Cash Flow
PS Business Parks, Inc. generates strong free cash flow of $1.95B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.90 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.26
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How PSB-PY Stacks Against Its Sector Peers
| Metric | PSB-PY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.45 | 24.23 | Better (Cheaper) |
| ROE | 31.42% | 659.00% | Weak |
| Net Margin | 125.00% | 4497.00% | Weak |
| Debt/Equity | 0.02 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.51 | 13.87 | Weak Liquidity |
| ROA | 25.83% | -1390.00% (disorted) | Strong |
PSB-PY outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PS Business Parks, 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