PSA hits an all-time record high
Public Storage (NYSE: PSA) is one of the world’s largest owners, operators and developers of self-storage facilities. PSA operates approximately 2,500 facilities and serves more than one million customers in the United States, Canada and Europe. Public Storage has a market capitalization of around $ 53.1 billion.
Public Storage stock is up around 60% year over year, with solid support from several moving averages, including the 30-day price that saw a brief decline in May. On top of that, the stock hit an all-time high of $ 305.59, which it hit on June 22, but appears to have bottomed out at the $ 300 mark – a level that was finally exceeded earlier in the week. The stock also has a forward dividend of $ 8.00 and a dividend yield of 2.65%.
PSA has exceeded profit expectations in only one of the last four earnings reports. The earnings releases for the second, third and fourth quarters of 2020 have all fluctuated and missed estimates. Finally, Public Storage reported an increase in quarterly earnings in its earnings report for the first quarter of 2021, beating expectations by a decent margin of $ 0.44. The company’s next earnings release is scheduled for Tuesday, August 3rd.
From a fundamental perspective, however, public storage stocks are undoubtedly overvalued. Despite PSA’s steady revenue growth, Public Storage has only increased its revenue by 11% since fiscal 2017. The bottom line is that public storage has seen consecutive annual declines over the past two fiscal years, which climbed to 26. amount% decrease in net profit between Fiscal Year 2018 and Fiscal Year 2020.
Additionally, Public Storage’s balance sheet is in disrepair with $ 2.54 billion in total debt and only $ 257 million in cash. Public storage stocks also have an inflated price-to-earnings ratio of 38.61, making them less attractive as a potential value game. There aren’t many positive arguments in favor of public storage fundamentals other than steady revenue growth. Still, for those looking for safer dividend games, public storage stock offers a decent dividend yield and the security of being one of the largest companies in the storage industry.