Public Storage (PSA) AI Stock Analysis

• Market Cap: $53.21B
• Dividend Yield: 3.96%
• Average Volume (3M): 734.67K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.60
• Revenue Growth: 3.08%
• EPS Growth: -8.54%
• Country: US
• Employees: 5,900
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Industrial
• EPS (TTM): 2.04
• Shares Outstanding: 175,431,350
• 10 Day Avg. Volume: 691,079
• 30 Day Avg. Volume: 734,672
• PEG Ratio: -5.03
• Price to Book (P/B): 5.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.88
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 3.32
• Enterprise Value/Gross Profit: 18.01
• Enterprise Value/Ebitda: 4.45
• 1Y Price Target: $332.00
• Price Target Upside: 9.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $340.00 ▲(12.10%Upside)

Public Storage's overall stock score is driven by strong financial performance and positive earnings call insights, indicating a well-managed company with growth potential. Despite high valuation concerns, its robust dividend yield and strategic initiatives in digital transformation and international expansion support a favorable outlook.

Positive Factors

Acquisitions

PSA's proposed acquisition of a 50% stake in Abacus would mark a strategic entry into the Australian/NZ storage market, which remains relatively nascent, with low penetration.

Earnings

PSA had a solid Q1, with same-store metrics coming in ahead of expectations and the guide looking achievable based on performance year-to-date.

Market Strategy

Partnering with the large majority shareholder of Abacus Storage King places Public Storage in an advantaged position compared to other potential bidders.

Negative Factors

Acquisition Uncertainty

Public Storage's acquisition deal is still at early stages and further information is expected, which could lead to uncertainty.

Financial Risk

The expected funding for Public Storage's share of the acquisition through unsecured debt could imply a higher financial risk.

Rent Growth

Guidance continues to assume a -100bps rent growth drag from LA wildfire rent restrictions.

Public Storage Business Overview & Revenue Model

Company Description

Public Storage (PSA) is a leading real estate investment trust (REIT) specializing in self-storage facilities. Founded in 1972 and headquartered in Glendale, California, the company operates thousands of self-storage locations across the United States and Europe. Public Storage provides a variety of storage solutions for personal, business, and vehicle storage needs, offering units in different sizes and configurations. The company is known for its widespread presence, brand recognition, and commitment to providing secure, clean, and convenient storage options for its customers.

How the Company Makes Money

Public Storage makes money primarily through the rental of storage units. Customers pay monthly fees to rent these units, and the company charges based on the size and location of the unit, as well as any additional services or amenities provided. The company's revenue model is largely based on maximizing occupancy rates and optimizing pricing strategies to reflect demand fluctuations. Public Storage also generates income from ancillary services such as the sale of packing supplies and insurance products. Significant factors contributing to its earnings include strategic acquisitions to expand its portfolio, maintaining high operational efficiency, and leveraging its brand strength to attract and retain customers.

Public Storage Financial Statement Overview

Summary

Public Storage exhibits strong financial performance with consistent revenue growth and efficient operations reflected in healthy margins. The balance sheet maintains a solid equity base, though increasing leverage needs monitoring. Cash flow management is exemplary, sustaining growth and operational needs, ensuring financial flexibility.

Income Statement

Public Storage demonstrates strong income statement performance with a consistent increase in total revenue over the years, growing from $2.92 billion in 2020 to $4.72 billion in TTM (Trailing-Twelve-Months). The gross profit margin remains robust at approximately 73.1% TTM. However, there is a slight decline in net income from 2022 to TTM, impacting the net profit margin. Despite this, EBIT and EBITDA margins remain healthy, indicating strong operational efficiency.

Balance Sheet

The balance sheet of Public Storage is stable, with a solid equity base of $9.57 billion TTM. The debt-to-equity ratio has increased slightly over the period, reflecting a higher leverage but remains manageable. The equity ratio is strong at about 48.8% TTM, suggesting a balanced capital structure and financial stability. However, increasing debt levels pose a potential risk if not managed carefully.

Cash Flow

Public Storage shows strong cash flow management, with operating cash flow consistently covering its capital expenditures, resulting in positive free cash flow each year. There has been a steady increase in free cash flow from 2020, reaching $2.87 billion TTM, reflecting effective cash management. The operating cash flow to net income ratio is robust, indicating efficient conversion of income into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.72B	4.70B	4.52B	4.18B	3.42B	2.92B
	Gross Profit
3.45B	3.44B	3.35B	3.13B	2.50B	2.05B
	EBIT
2.22B	2.20B	3.30B	2.17B	1.71B	1.41B
	EBITDA
3.41B	3.51B	3.34B	3.79B	2.86B	2.44B
	Net Income Common Stockholders
1.97B	2.07B	2.15B	4.35B	1.95B	1.36B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
271.64M	447.42M	370.00M	775.25M	734.60M	257.56M
	Total Assets
19.62B	19.75B	19.81B	17.55B	17.38B	11.82B
	Total Debt
9.07B	9.35B	9.10B	6.87B	7.48B	2.54B
	Net Debt
8.80B	8.91B	8.73B	6.10B	6.74B	2.29B
	Total Liabilities
9.57B	9.94B	9.70B	7.39B	7.96B	3.24B
	Stockholders Equity
9.95B	9.71B	10.01B	10.07B	9.34B	8.56B
Cash Flow		Free Cash Flow
2.79B	2.71B	2.79B	2.66B	2.27B	1.87B
	Operating Cash Flow
3.17B	3.13B	3.25B	3.12B	2.54B	2.04B
	Investing Cash Flow
-1.10B	-1.00B	-3.54B	1.12B	-5.56B	-1.12B
	Financing Cash Flow
-2.08B	-2.08B	-112.93M	-4.19B	3.50B	-1.08B

Public Storage Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 303.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSA, the sentiment is Negative. The current price of 303.29 is above the 20-day moving average (MA) of 303.18, above the 50-day MA of 296.18, and below the 200-day MA of 312.67, indicating a neutral trend. The MACD of 1.76 indicates Positive momentum. The RSI at 48.98 is Neutral, neither overbought nor oversold. The STOCH value of 54.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSA.

Public Storage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IIPR	79 Outperform	$1.56B	10.72	7.78%	13.73%	-1.33%	-8.62%
EXR	76 Outperform	$33.22B	34.85	6.46%	4.33%	14.72%	-4.21%
PSA	75 Outperform	$53.21B	30.12	20.20%	3.96%	3.08%	-8.54%
CUBE	73 Outperform	$9.76B	25.15	13.72%	4.83%	2.15%	-5.99%
Sector *	61 Neutral	$2.82B	10.84	0.42%	8439.00%	5.74%	-20.95%
NSA	53 Neutral	$4.56B	57.16	5.66%	6.66%	-9.89%	-70.29%
LINE	48 Neutral	$9.83B	―	-9.72%	2.06%	―	―

Public Storage Corporate Events

Public Storage Expands Portfolio Amid Rent Decline

Public Storage announced an operating update for the two months ending May 31, 2025, revealing a slight decrease in average annual contract rent per square foot for both move-ins and move-outs compared to the previous year. The company also reported a minor decline in square foot occupancy but managed to acquire or contract 69 self-storage facilities, adding 4.7 million net rentable square feet to its portfolio for $750.9 million since the start of 2025, indicating an aggressive expansion strategy.

The most recent analyst rating on (PSA) stock is a Hold with a $358.00 price target. To see the full list of analyst forecasts on Public Storage stock, see the PSA Stock Forecast page.

Public Storage Holds Annual Shareholders Meeting

On May 7, 2025, Public Storage held its Annual Meeting of Shareholders where four proposals were voted on. Shareholders elected twelve trustees to the Board, approved executive compensation, ratified Ernst & Young LLP as the accounting firm, and amended the 2021 Equity and Performance-Based Incentive Compensation Plan.