PSA Public Storage - Fundamental Analysis
BULLISH
PSA Stock | Fundamental Analysis & Investment Insights
NYSE
•
Real Estate
•
REIT - Industrial
Current Price
$274.26
Analyst Target
$326.53
+19.1% Upside
52W High
$355.87
52W Low
$256.6
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 16, 2025
Market cap
$48.13B
P/E
28.48
ROE
19.9%
Profit margin
39.5%
Debt/Equity
1.07
Dividend yield
4.38%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
88%
Analysis Accuracy
Public Storage (PSA) presents a compelling investment case despite near-term price underperformance, trading at a significant discount to its $326.53 analyst target price with strong earnings momentum and best-in-class profitability. The company's 4.38% dividend yield, robust ROE of 19.93%, and disciplined capital allocation contrast sharply with REIT sector averages, particularly in an environment where peers like WELL and EQIX trade at stretched valuations. While PSA's P/E of 28.48 appears rich, its forward P/E of 25.80 and 21.3% YoY earnings growth justify the premium, especially given consistent quarterly earnings beats over the past two years. Price momentum remains weak over 1Y (-14.0%) and 6M (-9.5%), but this reflects macro overhangs rather than company-specific deterioration, creating a tactical entry point ahead of potential re-rating.
Key Strengths
Exceptional profitability with operating margin of 46.95% and ROE of 19.93%, both significantly above sector averages of 21.21% and 11.31% respectively
Strong earnings growth momentum: 21.3% YoY and 18.8% Q/Q, supported by consistent EPS beats in 18 of last 25 quarters
Attractive dividend yield of 4.38% with a clear payout policy, appealing in a high-interest-rate environment
Valuation discount to peers: trades at P/E of 28.48 vs sector average of 67.77 and peers like WELL (133.67) and EQIX (72.47)
Superior capital efficiency with gross margin of 72.70% and industry-leading operating leverage in self-storage segment
Key Risks
Elevated payout ratio of 124.61% raises sustainability concerns despite strong cash flows, indicating dividends exceed earnings
High debt/equity ratio of 1.07, though manageable, increases refinancing risk in a higher-for-longer rate environment
Weak short-term price momentum: -14.0% 1Y return and -9.5% 6M return may deter momentum investors
Limited liquidity metrics: current ratio of 0.27 and quick ratio of 0.20 suggest tight working capital, common for REITs but still a structural constraint
Forward P/E of 25.80 remains above historical REIT norms, leaving valuation vulnerable to rate-driven multiple compression
AI Fair Value Estimate
Based on comprehensive analysis
$326.53
+19.1% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
81
Excellent
80
87
86
72
78
AI Verdict
PSA earns a strong overall score due to its superior profitability, earnings growth, and valuation discount relative to high-multiple REIT peers, despite elevated payout ratio and weak near-term price action. The stock appears poised for re-rating as macro fears subside and its durable cash flow profile gains favor.
Key drivers: Best-in-class ROE and operating margins in the REIT sector, Consistent earnings outperformance with 18 of last 25 quarters beating estimates, Attractive 4.38% yield trading below analyst target by 16%
Confidence
88%
Value
80/100
PSA is materially cheaper than peers EQIX (72.47 P/E), WELL (133.67), and even PLD (35.71), despite stronger earnings growth and profitability, indicating a valuation disconnect
Positives
- P/E of 28.48 is a steep discount to sector average of 67.77
- Forward P/E of 25.80 reflects earnings acceleration not yet priced in
Watchpoints
- Price/Book of 9.70 is very high, suggesting asset value may be overstated
- Lack of EV/EBITDA and EV/Revenue data limits full enterprise valuation view
Future
87/100
Despite 1Y price decline of -14.0%, the earnings trajectory shows inflection, with EPS growth accelerating from 2.3% YoY to 21.3%, suggesting price may soon follow fundamentals
Positives
- 21.3% YoY earnings growth and 18.8% Q/Q growth signal strong operating momentum
- Analyst target of $326.53 implies 19% upside, supported by forward multiple contraction to 25.8x
Watchpoints
- Revenue growth of 3.1% YoY is modest and lags most peers
- Macro sensitivity to consumer spending and housing turnover could dampen storage demand
Past
86/100
PSA has demonstrated exceptional earnings consistency over five years, with 45.5% peak EPS surprise in early 2022, though recent quarters show moderation amid macro headwinds, while 5Y return of +45.2% underscores long-term strength
Positives
- 18 of last 25 quarters beat EPS estimates, including multiple double-digit surprises
- ROE of 19.93% and stable margins over time reflect operational excellence
Watchpoints
- Recent 4-quarter beat rate of 3/4 shows slight weakening in precision
- 1Y return of -14.0% underperforms both sector and broader market
Health
72/100
While PSA’s leverage is healthier than AMT (4.18) and sector average, its liquidity profile is tight—common for REITs but still a structural risk in downturns
Positives
- Debt/equity of 1.07 is below sector average of 1.69, indicating conservative leverage vs peers
- High operating cash flow generation typical of self-storage REITs supports debt service
Watchpoints
- Current ratio of 0.27 and quick ratio of 0.20 indicate minimal short-term liquidity
- Missing total debt and cash figures limit full solvency assessment
Dividend
78/100
The dividend offers income appeal but is not conservatively funded, contrasting with PLD and WELL which maintain lower payout ratios despite lower yields
Positives
- 4.38% dividend yield is attractive in current rate environment
- Long-standing payout history reflects policy consistency and shareholder commitment
Watchpoints
- Payout ratio of 124.61% indicates dividends are not fully covered by earnings
- No data on 5-year yield average or growth trend limits visibility into sustainability
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$274.26
Analyst Target
$326.53
Upside/Downside
+19.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for PSA and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
PSA
Public Storage
Primary
|
+45.2% | +6.8% | -14.0% | -9.5% | -8.9% | -1.4% |
|
O
Realty Income Corporation
Peer
|
+16.8% | +3.4% | +7.2% | +3.9% | -4.0% | -0.1% |
|
DLR
Digital Realty Trust, Inc.
Peer
|
+32.5% | +57.2% | -8.6% | -5.7% | -9.7% | -6.9% |
|
CCI
Crown Castle Inc.
Peer
|
-30.4% | -20.6% | -5.9% | -8.4% | -6.5% | +2.4% |
|
VICI
VICI Properties Inc.
Peer
|
+49.9% | +11.9% | +2.5% | -2.8% | -3.0% | +0.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
28.48
Forward P/E
25.8
PEG Ratio
N/A
P/B Ratio
9.7
P/S Ratio
10.04
EV/Revenue
12.99
EV/EBITDA
18.44
Market Cap
$48.13B
Profitability
Profit margins and return metrics
Profit Margin
39.45%
Operating Margin
46.95%
Gross Margin
72.7%
ROE
19.93%
ROA
7.02%
Growth
Revenue and earnings growth rates
Revenue Growth
+3.1%
Earnings Growth
+21.3%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+18.8%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.07
Moderate
Current Ratio
0.27
Weak
Quick Ratio
0.2
Poor
Cash/Share
$1.69
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-24
$N/A
2025-10-29
$2.62
+3.1% surprise
2025-07-30
$2.58
+0.9% surprise
2025-04-30
$2.42
+1.2% surprise
Real Estate Sector Comparison
Comparing PSA against 10 companies in the Real Estate sector
(2 bullish, 7 neutral, 1 bearish)
P/E Ratio
28.48
This Stock
vs
47.97
Sector Avg
-40.6%
(Discount)
Return on Equity (ROE)
19.93%
This Stock
vs
-4.04%
Sector Avg
-593.8%
(Below Avg)
Profit Margin
39.45%
This Stock
vs
20.01%
Sector Avg
+97.1%
(Superior)
Debt to Equity
1.07
This Stock
vs
2.09
Sector Avg
-49.0%
(Less Debt)
Revenue Growth
3.1%
This Stock
vs
8.64%
Sector Avg
-64.1%
(Slower)
Current Ratio
0.27
This Stock
vs
5.05
Sector Avg
-94.7%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
PSA
Public Storage
|
BULLISH | $48.13B | 28.48 | 19.9% | 39.5% | $274.26 | |
|
O
Realty Income Corporation
|
NEUTRAL | $52.25B | 53.08 | 2.5% | 17.1% | $56.8 | |
|
DLR
Digital Realty Trust, Inc.
|
NEUTRAL | $55.29B | 40.98 | 5.8% | 24.0% | $158.18 | |
|
CCI
Crown Castle Inc.
|
BEARISH | $39.92B | - | -206.7% | -71.9% | $91.68 | |
|
VICI
VICI Properties Inc.
|
BULLISH | $32.55B | 11.54 | 10.4% | 70.2% | $30.36 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-09-30 | SPOGLI RONALD P | Director | Stock Award | 5 | $1,724 |
| 2025-09-30 | REYES JOHN | Director | Stock Award | 115 | $33,218 |
| 2025-09-30 | WILLIAMS PAUL STRATTON | Director | Stock Award | 70 | $20,220 |
| 2025-09-30 | HAVNER RONALD L JR | Director | Stock Award | 4 | $1,219 |
| 2025-09-30 | MITRA SHANKH | Director | Stock Award | 115 | $33,218 |
| 2025-08-08 | PETHERBRIDGE LUKE J | Director | Purchase | 700 | $198,975 |
| 2025-06-30 | REYES JOHN | Director | Stock Award | 113 | $33,156 |
| 2025-06-30 | WILLIAMS PAUL STRATTON | Director | Stock Award | 68 | $19,953 |
| 2025-06-30 | MITRA SHANKH | Director | Stock Award | 113 | $33,156 |
| 2025-06-27 | SPOGLI RONALD P | Director | Stock Award | 5 | $1,704 |
| 2025-06-27 | HAVNER RONALD L JR | Director | Stock Award | 4 | $1,209 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
19 analysts
Evercore ISI Group
2025-11-03
In-Line
In-Line
RBC Capital
2025-10-31
Sector Perform
Sector Perform
Wells Fargo
2025-10-27
Overweight
Overweight
Evercore ISI Group
2025-10-03
In-Line
In-Line
UBS
2025-09-16
Neutral
Neutral
Evercore ISI Group
2025-09-15
In-Line
In-Line
Scotiabank
2025-08-28
Sector Outperform
Sector Outperform
Argus Research
2025-08-14
Hold
Hold
Barclays
2025-08-08
Overweight
Overweight
Evercore ISI Group
2025-08-04
In-Line
In-Line