Extra Space Storage Inc (EXR, Financial) has recently garnered attention from the investment community, showcasing a solid financial profile that has piqued the interest of both investors and analysts. With its stock price at $151.77, the company has experienced a daily uptick of 1.81%, contrasting with a three-month movement of -2.57%. A comprehensive evaluation, anchored by the GF Score, positions Extra Space Storage Inc for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is an innovative stock performance ranking system created by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have demonstrated a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns than those with lower scores, making the GF Score a valuable tool for investors seeking profitable investments. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance.
- Financial strength rank: 4/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 10/10
- Momentum rank: 8/10
Each component of the GF Score is individually ranked, with each rank positively correlating with long-term stock performance. The GF Score is calculated by weighing these key aspects differently based on their impact on stock price performance. With a high GF Value rank and Growth rank, but a slightly lower Financial strength rank, GuruFocus has assigned Extra Space Storage Inc a GF Score of 94 out of 100, signaling strong potential for market outperformance.
Understanding Extra Space Storage Inc's Business
Extra Space Storage Inc, with a market capitalization of $32.12 billion and annual sales of $2.56 billion, is a fully integrated real estate investment trust (REIT). The company owns, operates, and manages nearly 3,700 self-storage properties across 42 states, offering over 280 million net rentable square feet of storage space. Approximately half of these properties are wholly owned, while the rest are either part of joint ventures or managed by Extra Space Storage for a fee. The company's operating margin stands at a robust 48.31%, reflecting its operational efficiency.
Profitability Rank Breakdown
The Profitability Rank of Extra Space Storage Inc highlights its superior ability to generate profits compared to its industry counterparts. The company's Gross Margin has consistently increased over the past five years, with figures rising from 72.07% in 2019 to 75.63% in 2022, before slightly dipping to 73.80% in 2023. This upward trend emphasizes Extra Space Storage Inc's growing efficiency in converting revenue into profit.
Moreover, the company's Predictability Rank of 4.5 stars out of five highlights its consistent operational performance, offering investors a reliable investment option.
Growth Rank Breakdown
Extra Space Storage Inc's high Growth Rank reflects its dedication to business expansion. The company's 3-Year Revenue Growth Rate of 13.1% surpasses 83.03% of companies in the REITs industry. Additionally, the company's EBITDA has seen significant growth, with a three-year growth rate of 14.4% and a five-year rate of 13%, showcasing its ability to sustain growth and profitability.
Next Steps
Considering Extra Space Storage Inc's financial strength, profitability, and growth metrics, the GF Score underscores the company's exceptional position for potential outperformance. Investors seeking to capitalize on such robust financial health and promising growth prospects may find Extra Space Storage Inc an attractive addition to their portfolios. For those interested in discovering more companies with strong GF Scores, GuruFocus Premium members can use the following screener link: GF Score Screen.
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.
