Public Storage (PSA) AI Stock Analysis

• Market Cap: $47.30B
• Dividend Yield: 4.53%
• Average Volume (3M): 973.49K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.43
• Revenue Growth: 2.30%
• EPS Growth: -0.22%
• Country: US
• Employees: 5,900
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 2.62
• Shares Outstanding: 175,463,010
• 10 Day Avg. Volume: 794,809
• 30 Day Avg. Volume: 973,494
• PEG Ratio: -6.55
• Price to Book (P/B): 5.41
• Price to Sales (P/S): 11.18
• P/FCF Ratio: 19.39
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 13.58
• Enterprise Value/Gross Profit: 18.60
• Enterprise Value/Ebitda: 19.44
• 1Y Price Target: $314.75
• Price Target Upside: 18.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 9.2
• Revenue Forecast (FY): $4.83B

• Rating: 73 Outperform
• Price Target: $303.00 ▲(14.46% Upside)

Public Storage's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust revenue growth and strategic initiatives. However, technical analysis indicates a bearish trend, and valuation suggests moderate pricing. The company's ability to manage leverage and navigate market challenges will be crucial for future performance.

Positive Factors

Digital and AI Integration

The integration of digital and AI technologies enhances operational efficiency, reduces costs, and improves customer service, which can lead to sustained competitive advantages and increased profitability over time.

Strong Acquisition Pipeline

A robust acquisition and development pipeline supports long-term growth and market expansion, enabling Public Storage to increase its market share and revenue potential.

Cash Flow Management

Efficient cash flow management ensures financial stability and flexibility, allowing the company to invest in growth opportunities and manage debt effectively, supporting long-term sustainability.

Negative Factors

Lower Occupancy Rates

Declining occupancy and move-in rates can negatively impact revenue growth and profitability, posing a challenge to maintaining market position and financial performance.

Increased Leverage

Higher leverage increases financial risk, especially if interest rates rise, potentially affecting the company's ability to invest in growth and maintain financial health.

Market Restrictions

Regulatory restrictions in key markets can limit revenue growth and operational flexibility, affecting the company's ability to capitalize on market opportunities.

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

Public Storage exhibits strong financial health with robust revenue growth and profitability. While leverage has increased, the company maintains effective cash flow management, supporting its operational and financial stability. Continued focus on managing debt levels will be crucial to sustain its financial strength.

Income Statement

Public Storage shows strong profitability with a consistent gross profit margin around 73% and a net profit margin of 38% in TTM. However, the net profit margin has decreased from previous years, indicating potential challenges in maintaining profitability. Revenue growth has been robust, especially in TTM, indicating strong demand and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.11 in TTM, reflecting higher leverage, which could pose risks if interest rates rise. However, the return on equity remains healthy at 18.93%, suggesting effective use of equity to generate profits. The equity ratio is stable, indicating a balanced capital structure.

Cash Flow

Public Storage demonstrates strong cash flow management with a high operating cash flow to net income ratio of 5.03 in TTM, indicating efficient cash generation. Free cash flow growth is positive, supporting future investments and debt servicing. The free cash flow to net income ratio is also strong, underscoring robust cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.79B	4.70B	4.52B	4.18B	3.42B	2.92B
Gross Profit	3.49B	3.44B	3.37B	3.13B	2.50B	2.05B
EBITDA	3.34B	3.51B	3.34B	5.41B	2.78B	1.97B
Net Income	1.89B	2.07B	2.15B	4.35B	1.95B	1.36B
Balance Sheet
Total Assets	20.11B	19.75B	19.81B	17.55B	17.38B	11.82B
Cash, Cash Equivalents and Short-Term Investments	296.46M	447.42M	370.00M	775.25M	734.60M	257.56M
Total Debt	10.04B	9.35B	9.10B	6.87B	7.48B	2.54B
Total Liabilities	10.71B	9.94B	9.70B	7.39B	7.96B	3.24B
Stockholders Equity	9.31B	9.71B	10.01B	10.07B	9.34B	8.56B
Cash Flow
Free Cash Flow	3.12B	2.71B	2.79B	2.66B	2.27B	1.87B
Operating Cash Flow	3.22B	3.13B	3.25B	3.12B	2.54B	2.04B
Investing Cash Flow	-1.73B	-1.00B	-3.54B	1.12B	-5.56B	-1.12B
Financing Cash Flow	-1.79B	-2.08B	-112.93M	-4.19B	3.50B	-1.08B

Public Storage Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 264.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 264.71 is below the 20-day moving average (MA) of 272.01, below the 50-day MA of 284.59, and below the 200-day MA of 287.60, indicating a bearish trend. The MACD of -3.42 indicates Negative momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 15.76 is Positive, 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
PSA	73 Outperform	$47.30B	28.01	20.00%	4.53%	2.30%	-0.22%
SELF	71 Outperform	$57.82M	32.61	3.70%	5.64%	3.36%	-43.55%
IIPR	69 Neutral	$1.43B	12.15	6.49%	15.22%	-11.22%	-24.64%
CUBE	68 Neutral	$8.39B	23.50	12.82%	5.85%	4.19%	-12.19%
EXR	66 Neutral	$28.71B	28.97	6.86%	5.11%	3.38%	17.16%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NSA	61 Neutral	$3.97B	47.93	6.89%	7.81%	-4.98%	-65.45%

Public Storage Corporate Events

Public Storage Issues €425 Million Senior Notes

On October 3, 2025, Public Storage Operating Company completed the issuance of €425 million in 3.500% Senior Notes due 2034. This financial move is part of a strategic effort to manage debt and secure long-term funding, with implications for the company’s financial stability and operational flexibility.

Public Storage Enters €425M Senior Notes Agreement

On September 26, 2025, Public Storage and its subsidiary, Public Storage Operating Company (PSOC), entered into an underwriting agreement with major financial institutions for the sale of €425 million in senior notes due 2034. The proceeds from this offering, expected to close on October 3, 2025, will be used to repay existing debt and for general corporate purposes, including investments in self-storage facilities.

Public Storage Releases August 2025 Operating Update

On September 8, 2025, Public Storage released an operating update for the periods ending August 31, 2025, highlighting a decrease in average annual contract rent per square foot and contract rents gained from move-ins compared to the previous year. Despite these declines, the company has been active in expanding its footprint, acquiring or contracting to acquire 74 self-storage facilities with 5.1 million net rentable square feet for $811.0 million since the start of the year.