Public Storage (PSA) AI Stock Analysis

• Market Cap: $52.48B
• Dividend Yield: 4.63%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.41
• Revenue Growth: 2.30%
• EPS Growth: -0.22%
• Country: US
• Employees: 5,900
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 2.60
• Shares Outstanding: 175,506,450
• 10 Day Avg. Volume: 1,294,867
• 30 Day Avg. Volume: 1,174,765
• PEG Ratio: -1.66
• Price to Book (P/B): 4.92
• Price to Sales (P/S): 9.44
• P/FCF Ratio: 15.72
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 13.16
• Enterprise Value/Gross Profit: 21.74
• Enterprise Value/Ebitda: 19.55
• 1Y Price Target: $302.17
• Price Target Upside: -0.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 16
• EPS Forecast (FY): 10.06
• Revenue Forecast (FY): $4.96B

• Rating: 71 Outperform
• Price Target: $332.00 ▲(8.85% Upside)
• Action: Reiterated Date: 02/17/26
• Date: Action: Reiterated 02/17/26

The score is driven primarily by strong cash generation and profitability, balanced against rising leverage and near-term fundamental headwinds reflected in 2026 guidance (lower core FFO and negative same-store trends). Technicals are supportive with a clear uptrend, while valuation is a notable constraint due to the elevated P/E despite a ~4% dividend yield.

Positive Factors

Cash Generation

Consistent, sizable operating cash flow and a strong free cash flow rebound in 2025 underpin dividend capacity, fund development and acquisitions, and provide a durable liquidity cushion. This cash generation supports strategic investments and resilience through cyclical softness without relying on near-term capital markets.

Accretive Acquisitions & Development

A large, yield-accretive acquisition program and a development pipeline targeting higher stabilized yields create recurring FFO upside and geographic diversification. Execution of this pipeline can offset same-store headwinds and deliver structural growth in cash flow and NOI over multiple years.

Leadership & PS4.0 Strategy

A generational leadership transition combined with the PS4.0 operating platform, stronger incentive alignment and a corporate relocation signal focused, long-term execution priorities. Emphasis on digital, AI and operational modernization can sustainably lift margins and accelerate per-share cash flow over the medium term.

Negative Factors

Rising Leverage

Materially higher leverage increases sensitivity to interest rates and refinancing risk, constraining financial flexibility for opportunistic buys or large development funding. Elevated debt levels also reduce downside protection during prolonged demand weakness and amplify earnings volatility.

Same-Store Weakness

Negative same-store revenue and NOI trends reflect persistent pricing and occupancy pressure in core markets. Sustained organic softness limits margin expansion and FFO growth, forcing reliance on acquisitions and development to maintain overall performance and increasing execution risk.

Regulatory Drag in Key Market

Regulatory constraints in Los Angeles and heightened scrutiny in other jurisdictions can structurally cap pricing power and restrict revenue management programs. Regulatory headwinds in a major market reduce national pricing optionality and could persistently depress returns in affected geographies.

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 primarily generates revenue through rental income from its self-storage facilities. Customers pay monthly fees for the use of storage units, which vary in price depending on the size, location, and features of the units. The company also earns income from the sale of packing supplies, such as boxes and locks, and offers additional services like insurance for stored belongings. Public Storage benefits from high occupancy rates and the ability to adjust rental rates based on market demand. Furthermore, strategic partnerships with real estate firms and participation in the broader real estate investment market contribute to its financial stability. The company also leverages technology to optimize pricing and improve customer experience, which supports its revenue growth.

Public Storage Financial Statement Overview

Summary

Strong operating cash generation and a 2025 free-cash-flow rebound support dividend capacity, and profitability remains solid. Offsetting this, leverage has risen materially over time (debt-to-equity above 1.0 in 2025) and earnings show normalization/volatility versus unusually strong 2022 results.

Income Statement

Revenue has grown steadily over the period, with a notable step-up in 2025 (annual revenue growth of ~80% versus low-to-mid single digits in 2024). Profitability is strong for a REIT, with gross margins consistently ~70%+ and net margins generally robust (~37% in 2025 and ~44% in 2024). The main weakness is volatility in profitability versus 2022’s unusually elevated results (net margin above 100% that year), followed by lower net income in 2025 despite higher revenue—suggesting earnings normalization and/or higher costs below the operating line.

Balance Sheet

The balance sheet remains sizable and equity-backed, but leverage has been rising: debt-to-equity moved from ~0.30 (2020) to ~0.96 (2024) and ~1.11 (2025). Return on equity has been healthy in most years (~19% in 2025 and ~21% in 2023–2024), but it peaked abnormally in 2022 and has since normalized. Overall, financial flexibility looks adequate, though the higher leverage profile increases sensitivity to refinancing and rate conditions.

Cash Flow

Cash generation is a clear strength. Operating cash flow is consistently strong (~$2.0B in 2020 rising to ~$3.2B in 2025), and free cash flow is solid with a sharp improvement in 2025 (free cash flow growth of ~219% versus a small decline in 2024). Free cash flow closely tracks earnings (about 1.0x net income in 2025 and ~0.86x in 2023–2024), supporting dividend capacity and reinvestment. The primary watch-out is year-to-year variability in free cash flow growth, including a modest pullback in 2024.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.82B	4.70B	4.52B	4.18B	3.42B
Gross Profit	1.20B	3.44B	3.37B	3.13B	2.50B
EBITDA	3.25B	3.51B	3.34B	5.41B	2.78B
Net Income	1.78B	2.07B	2.15B	4.35B	1.95B
Balance Sheet
Total Assets	20.21B	19.75B	19.81B	17.55B	17.38B
Cash, Cash Equivalents and Short-Term Investments	318.10M	447.42M	370.00M	775.25M	734.60M
Total Debt	10.25B	9.35B	9.10B	6.87B	7.48B
Total Liabilities	10.87B	9.94B	9.70B	7.39B	7.96B
Stockholders Equity	9.25B	9.71B	10.01B	10.07B	9.34B
Cash Flow
Free Cash Flow	2.90B	2.71B	2.79B	2.66B	2.27B
Operating Cash Flow	3.19B	3.13B	3.25B	3.12B	2.54B
Investing Cash Flow	-1.69B	-1.00B	-3.54B	1.12B	-5.56B
Financing Cash Flow	-1.63B	-2.08B	-112.93M	-4.19B	3.50B

Public Storage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 305.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 305 is above the 20-day moving average (MA) of 287.43, above the 50-day MA of 277.35, and above the 200-day MA of 282.39, indicating a bullish trend. The MACD of 6.71 indicates Negative momentum. The RSI at 67.77 is Neutral, neither overbought nor oversold. The STOCH value of 78.16 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	76 Outperform	$32.17B	32.47	7.10%	5.01%	3.38%	17.16%
PSA	71 Outperform	$52.48B	33.17	18.82%	4.63%	2.30%	-0.22%
CUBE	69 Neutral	$8.86B	24.82	12.82%	5.69%	4.19%	-12.19%
IIPR	69 Neutral	$1.30B	10.94	6.49%	13.07%	-11.22%	-24.64%
SELF	67 Neutral	$56.35M	31.78	3.70%	5.63%	3.36%	-43.55%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NSA	61 Neutral	$4.60B	55.61	6.89%	8.28%	-4.98%	-65.45%

Public Storage Corporate Events

Public Storage Unveils PS4.0 Strategy and Leadership Transition

On February 10, 2026, Public Storage announced PS4.0, a generational leadership transition and strategic vision anchored in a new operating platform, value‑creation engine, and ownership culture aimed at accelerating per‑share earnings, cash flow growth, and relative total shareholder returns. The plan centers on elevating customer and employee experience, expanding margins, and capitalizing on consolidation opportunities in the self‑storage market.

In leadership moves effective between February 16 and April 1, 2026, Tom Boyle will succeed retiring CEO Joe Russell, with Russell remaining as a consultant through March 31, 2027, while Joe Fisher becomes president and CFO, and executives Natalia Johnson and Chris Sambar assume expanded president‑level roles. The board will see Shankh Mitra become non‑executive chairman, Boyle join as a trustee, Havner remain on the board, and long‑time trustee John Reyes retire, supported by new incentive structures that tie leadership rewards more closely to absolute and relative shareholder returns.

Reinforcing their conviction in the PS4.0 strategy, Mitra and outgoing chairman Ron Havner are investing a combined $30 million in 10‑year, out‑of‑the‑money options with a six‑year lock‑up, aligning their interests with long‑term shareholders and signaling confidence in future value creation. As part of the reset, Public Storage is also relocating its corporate headquarters from Glendale, California, to Frisco, Texas, underscoring a broader operational and cultural shift designed to position the company for its next phase of growth in the Dallas metropolitan area and beyond.

The most recent analyst rating on (PSA) stock is a Hold with a $295.00 price target. To see the full list of analyst forecasts on Public Storage stock, see the PSA Stock Forecast page.

Public Storage issues mixed 2025 operating update

On January 7, 2026, Public Storage released an investor presentation containing an operating update for the three months and year ended December 31, 2025, showing a mixed performance across its same-store portfolio. For 2025, the company reported modestly higher occupancy of 91.0% at year-end, up 0.5 percentage points from 2024, but experienced declines in average annual contract rent per square foot for tenants moving in and those in place, along with reduced contract rents gained from move-ins and contract rents lost from move-outs. Promotional discounts granted to new tenants declined both in the fourth quarter and for the full year, suggesting some easing of incentive levels even as pricing metrics softened. Strategically, Public Storage expanded its footprint during 2025 by acquiring 87 self-storage facilities totaling 6.1 million net rentable square feet for $942.2 million, underscoring continued growth through acquisitions despite pressure on same-store rent metrics.

The most recent analyst rating on (PSA) stock is a Hold with a $301.00 price target. To see the full list of analyst forecasts on Public Storage stock, see the PSA Stock Forecast page.

Public Storage Reports November 2025 Operating Update

On December 8, 2025, Public Storage announced an operating update for the periods ending November 30, 2025, highlighting a decrease in average annual contract rent per square foot for tenants moving in, alongside a slight increase in square footage. The company also reported acquiring or being under contract to acquire 88 self-storage facilities for $949.4 million in 2025, reflecting its strategic expansion efforts.

The most recent analyst rating on (PSA) stock is a Buy with a $303.00 price target. To see the full list of analyst forecasts on Public Storage stock, see the PSA Stock Forecast page.