Public Storage (PSA) AI Stock Analysis

• Market Cap: $50.85B
• Dividend Yield: 4.14%
• Average Volume (3M): 754.09K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 0.60
• Revenue Growth: 3.08%
• EPS Growth: -8.54%
• Country: US
• Employees: 5,900
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Industrial
• EPS (TTM): 2.04
• Shares Outstanding: 175,431,350
• 10 Day Avg. Volume: 890,834
• 30 Day Avg. Volume: 754,091
• PEG Ratio: -4.83
• Price to Book (P/B): 5.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.21
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 17.40
• Enterprise Value/Ebitda: 4.30
• 1Y Price Target: $330.67
• Price Target Upside: 14.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 70 Outperform
• Price Target: $319.00 ▲(10.05%Upside)

Public Storage's financial performance is robust, supported by strong cash flow management and consistent revenue growth. The technical analysis indicates bearish momentum, which is a concern for near-term price action. Valuation is on the higher side, but the attractive dividend yield provides a cushion. Earnings call insights and corporate events suggest strategic initiatives are in place to address challenges and leverage growth opportunities.

Positive Factors

Financial Performance

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

Market Demand

Move-in rates are improving, with volumes up and move-outs down, suggesting that PSA's conservative guidance for move-in rates may be exceeded.

Strategic Growth

PSA's acquisitions and developments strategy shows flexibility to pursue growth, supported by a strong cash flow and low leverage.

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.

Forecast Concerns

PSA expects a -100bps drag to SSRev in its FY25 guidance.

Regulatory Challenges

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

Public Storage Business Overview & Revenue Model

Company Description

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At September 30, 2020, we had: (i) interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the Shurgard brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2020. Our headquarters are located in Glendale, California.

How the Company Makes Money

Public Storage generates revenue primarily through the rental of its storage units. Customers pay monthly fees to rent these units, with prices varying based on factors such as location, unit size, and additional features like climate control. The company also earns income from the sale of ancillary products and services, such as packing supplies and insurance offerings. Additionally, Public Storage benefits from economies of scale and strategic property acquisitions, which enhance its market presence and profitability. The company may also engage in partnerships or joint ventures to expand its service offerings and reach.

Public Storage Financial Statement Overview

Summary

Public Storage exhibits a strong financial profile with consistent revenue growth and efficient operations reflected in its 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
EBITDA	3.41B	3.51B	3.34B	3.79B	2.86B	2.44B
Net Income	1.97B	2.07B	2.15B	4.35B	1.95B	1.36B
Balance Sheet
Total Assets	19.62B	19.75B	19.81B	17.55B	17.38B	11.82B
Cash, Cash Equivalents and Short-Term Investments	287.18M	447.42M	370.00M	775.25M	734.60M	257.56M
Total Debt	9.42B	9.35B	9.10B	6.87B	7.48B	2.54B
Total Liabilities	9.95B	9.94B	9.70B	7.39B	7.96B	3.24B
Stockholders Equity	9.57B	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: 289.88
• 50DMA: Negative
• 100DMA: Negative
• 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 289.88 is below the 20-day moving average (MA) of 296.33, below the 50-day MA of 296.17, and below the 200-day MA of 307.16, indicating a bearish trend. The MACD of -1.99 indicates Positive momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 24.16 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	77 Outperform	$1.60B	10.98	7.78%	13.30%	-1.33%	-8.62%
EXR	74 Outperform	$32.32B	33.91	6.46%	4.44%	14.72%	-4.21%
CUBE	74 Outperform	$9.71B	25.02	13.72%	4.91%	2.15%	-5.99%
PSA	70 Outperform	$50.85B	28.79	20.20%	4.14%	3.08%	-8.54%
Sector *	59 Neutral	C$1.23B	0.76	-8.20%	5.62%	9.89%	-25.14%
NSA	53 Neutral	$4.28B	53.62	5.66%	7.17%	-9.89%	-70.29%
LINE	49 Neutral	$10.08B	―	-9.72%	4.79%	―	―

Public Storage Corporate Events

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.

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 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.