Public Storage (PSA) AI Stock Analysis

• Market Cap: $50.56B
• Dividend Yield: 4.11%
• Average Volume (3M): 749.98K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.58
• Revenue Growth: 2.49%
• EPS Growth: -14.10%
• Country: US
• Employees: 5,900
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 1.76
• Shares Outstanding: 175,452,850
• 10 Day Avg. Volume: 608,633
• 30 Day Avg. Volume: 749,983
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 13.77
• Enterprise Value/Gross Profit: 18.90
• Enterprise Value/Ebitda: 20.15
• 1Y Price Target: $324.71
• Price Target Upside: 11.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 76 Outperform
• Price Target: $324.00 ▲(10.88% Upside)

Public Storage's strong financial performance and positive earnings outlook are the most significant factors driving the score. While technical indicators and valuation present some concerns, the company's strategic acquisitions and international growth opportunities provide a solid foundation for future performance.

Positive Factors

Balance Sheet Strength

PSA continues to have an enviable balance sheet with A rated leverage, providing downside support and allowing it to play offense.

Financial Performance

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 Position

PSA has a dominant market position with a powerful platform and brand.

Negative Factors

Acquisition Risks

There is a risk that PSA, as a net acquiror, might be paying a premium for acquisition targets in the sector.

Market Growth Challenges

Uninspiring top-line growth that's expected to weaken given LA rent restrictions.

Rent Restrictions

Local rent restrictions in LA are expected to increasingly pressure growth through '25, impacting PSA's top-line growth.

Public Storage Business Overview & Revenue Model

Company Description

Public Storage (PSA) is a leading provider of self-storage solutions in the United States, with a significant presence in Europe. The company specializes in offering storage units for personal, business, and vehicle storage needs. Public Storage operates thousands of facilities nationwide, providing customers with a wide range of unit sizes and features, including climate-controlled environments and advanced security systems. The company's core services focus on rental of storage space, catering to individuals and businesses seeking flexible and accessible storage options.

How the Company Makes Money

Public Storage primarily generates revenue through the rental of storage units to customers. The company charges monthly fees based on the size and location of the storage units, with pricing structures that vary according to market demand and competition. Additionally, Public Storage earns revenue from ancillary services such as the sale of packing supplies (boxes, tape, etc.), insurance for stored items, and administrative fees. The company also benefits from operational efficiencies and economies of scale, as it manages a large portfolio of facilities. Seasonal demand fluctuations, local market conditions, and effective marketing strategies play significant roles in shaping its revenue streams.

Public Storage Financial Statement Overview

Summary

Public Storage demonstrates strong financial health with consistent revenue and profitability growth, robust operational performance, and effective cash flow generation. However, there are minor concerns about increased financial leverage.

Income Statement

Public Storage has demonstrated strong income statement performance. The company has experienced consistent revenue growth with a noticeable increase from 2021 to TTM 2025. Gross profit and net profit margins are robust, indicating efficient cost management and profitability. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The balance sheet of Public Storage shows a solid financial position. The equity ratio is satisfactory, indicating a good proportion of equity financing. However, the debt-to-equity ratio has increased over time, which presents some financial leverage risks. The return on equity remains strong, indicating efficient use of shareholders' funds.

Cash Flow

Public Storage's cash flow statement shows a positive trend in free cash flow growth, supporting the company's ability to invest and return value to shareholders. The operating cash flow to net income ratio is stable, indicating strong cash generation relative to net income. However, the fluctuations in investing and financing cash flows suggest some volatility in cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.75B	4.70B	4.52B	4.18B	3.42B	2.92B
Gross Profit	3.46B	3.44B	3.37B	3.13B	2.50B	2.05B
EBITDA	3.25B	3.51B	3.34B	5.41B	2.78B	1.97B
Net Income	1.81B	2.07B	2.15B	4.35B	1.95B	1.36B
Balance Sheet
Total Assets	20.54B	19.75B	19.81B	17.55B	17.38B	11.82B
Cash, Cash Equivalents and Short-Term Investments	1.10B	447.42M	370.00M	775.25M	734.60M	257.56M
Total Debt	10.44B	9.35B	9.10B	6.87B	7.48B	2.54B
Total Liabilities	11.07B	9.94B	9.70B	7.39B	7.96B	3.24B
Stockholders Equity	9.37B	9.71B	10.01B	10.07B	9.34B	8.56B
Cash Flow
Free Cash Flow	2.82B	2.71B	2.79B	2.66B	2.27B	1.87B
Operating Cash Flow	3.15B	3.13B	3.25B	3.12B	2.54B	2.04B
Investing Cash Flow	-1.25B	-1.00B	-3.54B	1.12B	-5.56B	-1.12B
Financing Cash Flow	-1.36B	-2.08B	-112.93M	-4.19B	3.50B	-1.08B

Public Storage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 292.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSA, the sentiment is Positive. The current price of 292.22 is above the 20-day moving average (MA) of 286.83, above the 50-day MA of 287.34, and below the 200-day MA of 295.65, indicating a neutral trend. The MACD of 1.68 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 48.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSA.

Public Storage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXR	78 Outperform	$31.21B	30.61	6.97%	4.40%	4.83%	18.94%
PSA	76 Outperform	$50.56B	31.44	18.98%	4.11%	2.49%	-14.10%
IIPR	75 Outperform	$1.53B	11.80	7.04%	13.26%	-7.80%	-18.78%
CUBE	73 Outperform	$9.14B	24.31	13.43%	4.96%	3.14%	-8.01%
SELF	73 Outperform	$58.05M	23.98	5.15%	5.52%	4.08%	11.03%
NSA	60 Neutral	$4.42B	51.81	6.19%	6.95%	-7.33%	-66.93%
Sector *	53 Neutral	$1.21B	3.22	-6.08%	5.78%	-8.30%	-81.83%

Public Storage Corporate Events

Public Storage Appoints Luke Petherbridge as Trustee

On July 30, 2025, Public Storage appointed Luke Petherbridge as an independent trustee to its Board, expanding it to thirteen members. Petherbridge, with over 20 years of experience in corporate finance and real estate management, will serve on the Nominating, Governance, and Sustainability Committee. Public Storage also reported its financial results for the three and six months ended June 30, 2025, noting a decrease in net income compared to the previous year due to foreign currency losses and other factors. However, the company continues to enhance its operations through strategic acquisitions and developments, with over $1.1 billion in investments anticipated for the year.

Public Storage Issues $875 Million in Senior Notes

On June 30, 2025, Public Storage Operating Company, a subsidiary of Public Storage, completed the issuance of $475 million 4.375% Senior Notes due 2030 and $400 million 5.000% Senior Notes due 2035. These notes, guaranteed by Public Storage, are unsecured and unsubordinated obligations, with specific covenants and redemption options. The issuance aims to strengthen the company’s financial positioning and provide flexibility in managing its debt obligations.

Public Storage Announces $875M Senior Notes Sale

On June 26, 2025, Public Storage and its subsidiary, Public Storage Operating Company (PSOC), entered into an underwriting agreement with BofA Securities and Wells Fargo Securities for the sale of $875 million in senior notes. The offering, expected to close on June 30, 2025, aims to repay existing debt and fund general corporate purposes, including acquisitions of self-storage facilities. This strategic financial move is anticipated to strengthen Public Storage’s market position and operational capabilities.

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.