Extra Space Storage Inc (EXR, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $153.06, Extra Space Storage Inc has witnessed a daily loss of 1.07%, marked against a three-month change of 23.96%. A thorough analysis, underlined by the GF Score, suggests that Extra Space Storage Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 4/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 7/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability and growth rank, but a slightly lower financial strength rank, GuruFocus assigned Extra Space Storage Inc the GF Score of 92 out of 100, which signals the highest outperformance potential.
Understanding Extra Space Storage Inc's Business
Extra Space Storage Inc, with a market cap of $32.34 billion and sales of $2.27 billion, operates a fully integrated real estate investment trust. It owns, operates, and manages almost 2,400 self-storage properties in 41 states, offering over 180 million net rentable square feet of storage space. Approximately half of these properties are wholly owned, with the remainder being owned through joint ventures or managed by Extra Space Storage Inc for a management fee. The company's operating margin stands at a healthy 51.14%, reflecting its efficient operations and strong market position.
Profitability Rank Breakdown
The Profitability Rank of Extra Space Storage Inc showcases its impressive ability to generate profits compared to its peers. The company's Operating Margin has seen a steady increase over the past five years, with figures rising from 48.44% in 2019 to 53.93% in 2022, before slightly dipping to 50.43% in 2023. This trend indicates a strong command over operational efficiencies and cost management.
Furthermore, the company's Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence in the stability of its earnings.
Growth Rank Breakdown
Extra Space Storage Inc's high Growth Rank reflects its commitment to expanding its business and enhancing shareholder value. The company's 3-Year Revenue Growth Rate of 12.3% outperforms 86.14% of the companies in the REITs industry. Additionally, the company's EBITDA has shown significant growth, with a three-year growth rate of 16.9% and a five-year rate of 10.6%, highlighting Extra Space Storage Inc's ability to increase its earnings sustainably.
Next Steps
Considering Extra Space Storage Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for companies with similar robust financial health can explore more options using the GF Score Screen provided by GuruFocus. With a strong foundation and a clear growth trajectory, Extra Space Storage Inc stands as a compelling investment opportunity for those seeking market outperformance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
