EXREXR
US • —
$146.41
P/E
33.43
PEG
13.37
FCF Yield
—
Rev Growth YoY
+4.2% YoY
Gross Margin
70.6%
Health Score
5/10
D/E Ratio
1.00
Confidence
LOW
Business Snapshot
Extra Space Storage is a real estate investment trust (REIT) focused on the self-storage sector. The company owns, operates, and manages storage facilities, generating revenue primarily through rental income from individual and business customers. The self-storage market is fragmented but dominated by a few large players, including Extra Space Storage, which is a leading operator. The company is a large-cap REIT with a significant national footprint, offering a diversified portfolio of properties. Its defining characteristic is its scale and operational efficiency, which allows it to maintain high occupancy and pricing power across its network.
Financial Health
Extra Space Storage shows a gross margin of 70.6%, indicating strong pricing power and cost efficiency in its core operations. Net margin stands at 27.7%, reflecting solid profitability relative to revenue...
Risk Assessment
- VALUATION — P/E of 33.43x trades at a substantial 52% premium to the sector average of 22x, increasing downside risk if growth slows.
- LIQUIDITY — Current ratio of 0.34x is critically low, indicating potential difficulty meeting short-term debt obligations without new financing or asset sales.
- EARNINGS QUALITY — Earnings growth of 2.5% lags behind revenue growth of 4.2%, suggesting margin compression or rising costs that could pressure future profitability.
- INSIDER — 1 net insider sell over the last 90 days provides a cautious signal about management's view of the stock's valuation....
Extra Space Storage shows a gross margin of 70.6%, indicating strong pricing power and cost efficiency in its core operations. Net margin stands at 27.7%, reflecting solid profitability relative to revenue. The debt-to-equity ratio of 1.0x is manageable for a REIT, though the current ratio of 0.34x points to a liquidity risk, as current assets are far from covering short-term liabilities. Return on equity is 7.0%, a moderate figure for a capital-intensive business. Overall financial health is mixed; while the company is profitable and leverages debt prudently for its sector, the weak liquidity position could limit short-term financial flexibility and dividend capacity.
- VALUATION — P/E of 33.43x trades at a substantial 52% premium to the sector average of 22x, increasing downside risk if growth slows. - LIQUIDITY — Current ratio of 0.34x is critically low, indicating potential difficulty meeting short-term debt obligations without new financing or asset sales. - EARNINGS QUALITY — Earnings growth of 2.5% lags behind revenue growth of 4.2%, suggesting margin compression or rising costs that could pressure future profitability. - INSIDER — 1 net insider sell over the last 90 days provides a cautious signal about management's view of the stock's valuation.
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