One-glance verdict
Within fair range
$352.58 our estimate vs market $324.77
Wall Street consensus: $330.50 (-6.3% lower than our fair-value estimate)
8% below our estimate
Fundamentals snapshot
Public Storage
PSA · NYQ · Real Estate · REIT - Industrial
Current price
$324.77
52-week range
$256.54 - $335.55
Market cap
$60.68B
Balance sheet
Stretched
7.42x Adequate
Net debt $11.63B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.3% last year.
- Reward Returns 15.6% on equity, ahead of 80% of its peers.
- Risk Net debt grew 63.0% over 3 years.
- Risk Stock trades 41.6% above its 5-year average P/E.
What this company does
Public Storage
Public Storage rents out storage units to people and businesses, mainly across the United States. The money they make comes from people paying rent each month, which is a steady stream of income (called recurring revenue). This consistent income is important because it helps the company plan for the future and can lead to stable profits (called margins).
How the company got here
Public Storage was founded in 1972, starting with just a few self-storage facilities in the Los Angeles area. The company went public in 1991, allowing it to raise more money to expand its portfolio. Over the decades, Public Storage grew by acquiring existing storage properties and developing new ones. A significant move was its investment in Shurgard Self Storage, which expanded its reach into Western Europe. Today, it's one of the largest self-storage companies in the United States, a member of the S&P 500 index, which is a common benchmark for the overall stock market.
What it actually does
Public Storage operates self-storage facilities, which are essentially secure spaces people can rent to store their belongings. Think of it like renting a small, private warehouse unit. Customers use these units for various reasons, such as during a move, when downsizing, or to store items they don't have space for at home. The company makes money by charging rent for these storage units, with prices varying based on the size of the unit and the length of the rental agreement.
U.S. Self-Storage Operations
This is the core of Public Storage's business, where it owns and operates a vast network of self-storage facilities across 40 states in the U.S. These facilities offer a wide range of unit sizes to meet different customer needs. The company generates revenue by renting out these units to individuals and businesses. This segment represents the largest portion of Public Storage's overall business, making up the vast majority of its rentable square footage and income.
Investment in Shurgard Self Storage
Public Storage holds a significant ownership stake (35%) in Shurgard Self Storage, a company that operates self-storage facilities in seven Western European countries. While not wholly owned, this investment provides Public Storage with exposure to the European self-storage market. Shurgard operates under its own brand, and Public Storage benefits from the performance of this international venture through its equity interest.
What management is betting on now
Public Storage's strategy likely focuses on continuing to optimize its existing portfolio of properties and potentially expanding its footprint through strategic acquisitions or development. Management aims to maximize rental income by adjusting prices based on demand and ensuring facilities are well-maintained and secure. They are also focused on operational efficiency to manage costs effectively, which helps improve their profit margins (the percentage of revenue left after covering expenses). The company's long-term success relies on its ability to attract and retain customers in a competitive market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$1.37B
Net income
$366.93M
Diluted EPS
1.69
Operating cash flow
$708.85M
Free cash flow
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Sources
Revenue
$1.23B
Net income
$499.96M
Diluted EPS
2.55
Operating cash flow
$868.44M
Free cash flow
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Sources
Revenue
$1.22B
Net income
$526.27M
Diluted EPS
2.71
Operating cash flow
$694.80M
Free cash flow
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Revenue
$1.22B
Net income
$507.07M
Diluted EPS
2.59
Operating cash flow
$733.59M
Free cash flow
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Sources
Revenue
$1.22B
Net income
$511.06M
Diluted EPS
2.62
Operating cash flow
$875.09M
Free cash flow
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Revenue
$1.20B
Net income
$358.42M
Diluted EPS
1.76
Operating cash flow
$872.71M
Free cash flow
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Revenue
$1.18B
Net income
$407.79M
Diluted EPS
2.04
Operating cash flow
$705.06M
Free cash flow
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Revenue
$1.18B
Net income
$614.61M
Diluted EPS
3.22
Operating cash flow
$768.62M
Free cash flow
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Is it cheap or expensive?
Fair value $352.58 vs current price $324.77
Wall Street consensus is the average analyst price target: $330.50 (-6.3% lower than our fair-value estimate).
Our most-likely fair value is $352.58 a share — about 8.6% away from today's price of $324.77, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $11.6B. Interest coverage 7.4x.
Net debt
$11.63B
Interest coverage
7.42x
Public Storage's profit covers its interest bill about 7.4 times over. which is stronger than every peer shown here.
Stretched
Worse cushion
Baseline
Better cushion
PSA
BASELINE
Public Storage
Total debt $12.19B Interest coverage 7.42x This is the baseline the peer rows are being compared against.
Total debt $14.17B Interest coverage 2.34x -68% vs PSA Carries about 3.2x less debt cushion than PSA.
Total debt $3.60B Interest coverage 3.93x -47% vs PSA Carries about 1.9x less debt cushion than PSA.
Total debt $8.15B Interest coverage 1.28x -83% vs PSA Carries about 5.8x less debt cushion than PSA.
Total debt $5.86B Interest coverage 3.34x -55% vs PSA Carries about 2.2x less debt cushion than PSA.
What you should know
The case for and against PSA
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.3% last year.
-
Returns 15.6% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 63.0% over 3 years.
-
Stock trades 41.6% above its 5-year average P/E.
-
Operating margin compressed from 51.9% to 39.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
34.15x
Forward P/E
32.70x
P/B
6.20x
P/S
12.03x
EV/EBITDA
22.06x
PEG ratio
4.35x
Profitability
How much profit each dollar creates
Gross margin
74.3%
Operating margin
39.5%
Net margin
37.7%
ROE
15.6%
ROA
5.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.80x
Current ratio
0.37x
Quick ratio
0.18x
Total debt
$12.19B
Total cash
$560.38M
Growth
How the business has been compounding
Revenue TTM
$5.03B
Revenue 5Y CAGR
9.0%
EPS TTM
9.51
EPS 5Y CAGR
-27.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.01B
Free CF TTM
$2.90B
FCF margin
57.6%
Dividend
Shareholder payout
Yield
3.7%
Payout ratio
126.2%
Last ex-div date
2026-09-15