NYSE:PSA
$75.96
(2/9 3:44PM)
-0.1%
| Open | $76.77 |
Mkt Cap | $12.9 Billion |
| High | $76.98 |
52Wk High | $85.10 |
| Low | $75.34 |
52Wk Low | $45.35 |
| Volume | 1.2 Million |
Avg Vol 10D | 1.6 Million |
Ockham's Rating/Recommendation Summary
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PSA Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, PSA the high and low end of the Price to Sales per share ratios are 9.21x and 5.61x respectively.
Notice that PSA's current Price to Sales per share ratio is 7.52x, which is above its historical average only slightly. So, while not a major concern it is worth noting that from a value perspective PSA does not look undervalued on a Price to Sales basis. However, were the Price to Sales ratio to drop by 1% (the historical average) then we would become more positive on this stock.
PSA Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently PSA is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for PSA to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 47.79 and a 29.31 low over the same period.
Now that PSA’s current price is $77.63 and its Price to Cash Earnings ratio is 17.48, we are very positive on its outlook from the cash earnings perspective. In fact, PSA is now trading a full 55% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why PSA has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
PSA Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for PSA to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for PSA is $2.20 producing a current dividend yield of 2.83%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from PSA against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from PSA over previous years was 7.00% while the lowest dividend yield was 1.71%. It is never a good sign for a company to pay significantly lower dividends, in this case 35.02% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
PSA Back in the News on Squawk On The Street
It's been at least a month since we noticed any major news coverage of PSA, so the story in Squawk On The Street may get the ball rolling.
At present, Ockham has a valuation stance of Undervalued on PSA, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Public Storage has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Public Storage underperforming.
“… Dynegy coming out and saying we have the $830 million to go forward with our planned debt that one up for about 4% so far PUBLIC STORAGE cut to hold from buy at argus. …”
First PSA News on Closing Bell in More Than a Month
Fantastic. There are about 55,000 storage facilities here in the u.S. So, the top ten operators here 10% of the market. PUBLIC STORAGE has less than a 5% market share. Now, certainly not all of those 55,000 facilities are properties that we would like to acquire, but even if you take a quarter of it, 12,000, 13,000 facilities, and take 10%, that's 1,000-plus facilities, which would increase our portfolio by
“… acquire, but even if you take a quarter of it, 12,000, 13,000 facilities, and take 10%, that's 1,000-plus facilities, which would increase our portfolio by …”
PSA's Back in the News After More than a Month on Closing Bell
>>> foreign currency gains fueled better-than-expected earnings for PUBLIC STORAGE. Funds from operations a growth measure for reits, for the world's largest publicly traded storage reit, joining me now to break down the numbers is ron havner, ceo of PUBLIC STORAGE. Thanks so much for joining us. There's so many interesting facets for your business. Let me ask you about the basic storage business. I know people are downsizing right now and moving out of bigger homes, so they might use more storage, at the same time they don't have any money, so it seems like they would throw it away instead of putting it in what's going on with the fundamentals of your business?
“… IC STORAGE. Thanks so much for joining us. There's so many interesting facets for your business. Let me ask you about the basic storage business. I know people are downsizing right now and moving out of bigger homes, so they might use more storage, at the same time they don't have any money, so it seems like they would throw it away instead of putting it in what's going on with the fundamentals of your business? …”
First PSA News on Closing Bell in More Than a Month
We'll see if we can close above we mention eded that the nasdaq is holding in positive territory, >>> and coming up, foreign currency gains helping to boost the bottom lines of PUBLIC STORAGE. The ceo tells us how his company is riding the 4x wave. Military leaders. Republicans and democrats. They all agree--now is the time to lead. We have a historic opportunity to end our dependence on foreign oil and rebuild our economy by investing in a clean energy
“… ry leaders. Republicans and democrats. They all agree--now is the time to lead. We have a historic opportunity to end our dependence on foreign oil and rebuild our economy by investing in a clean energy …”
Public Storage (PSA) Discussed on Fox Business's Fox Business
Public Storage is in the news. Find out how this impacts PSA trading on Ockham Research.
Take a look at the upgrades and down grades. Got to look at alcoa. Alcoa is one worth watching with deutche security calling alcoa a buy from a hold. So that's certainly one to watch and also, southern and also con-ed an el paso. PUBLIC STORAGE, some names that have gotten upgrades. A mixed bag as far as the movers there and here is a look at the down grades that are certainly worth noting. Kb homes in particular, we've been watching the home builders and certainly getting swung move in pretty big increments and cb homes down 6% as credit suisse downgraded to a neutral from an outperform and this on the first trading day, the traders are taking a breather here, but they think that motor tum is to the upside and even yesterday when they got in the numbers at 10 a.M. And a lot of them it's a news blip and it wasn't that we turned it around yesterday, but we're still here, but getting a little lower and breaking through a support level and interesting to watch today here and today and tomorrow. Back to you, brian. >> brian: nicole petallides >> dagen: breaking news to bring you from general motors. Gm saying that it's moving quickly to wind down saturn after the deal for penske to buy the saturn dealerships collapsed. Again, gm moving quickly to wind
“… s that have gotten upgrades. A mixed bag as far as the movers there and here is a look at the down grades that are certainly worth noting. Kb homes in particular, we've been watching the home builders and certainly getting swung move in pretty big increments and cb homes down 6% as credit suisse downgraded to a neutral from an outperform and this on the first trading day, the traders are taking a breather here, but they think that motor tum is to the upside and even yesterday when they got in the numbers at 10 a.M. And a lot of them it's a news blip and it wasn't that we turned it around yesterday, but we're still here, but getting a little lower and breaking through a support level and interesting to watch today here and today and tomorrow. Back to you, brian. >> brian: nicole petallides >> dagen: breaking news to bring you from general motors. Gm saying that it's moving quickly to wind down saturn after the deal for penske to buy the saturn dealerships collapsed. Again, gm moving quickly to wind …”
Public Storage (PSA) Discussed on CNBC's Power Lunch
Public Storage is in the news. Find out how this impacts PSA trading on Ockham Research.
Shopping for champions right darren? >> that's right, rebecca. It's all about hands in the pockets for me tonight. I'm not bidding at all, but this guy might. His name is skbain he's the chairman of PUBLIC STORAGE. He will be back with us on "power lunch," coming up. In this small sidecar,but i've still got room for the internet. With my new netbook from at&t. With its built-in it's fast and small, so it goes places i'm bill kurtis, i've got plenty of and the nation's fastest 3g network. Gun it, mick. (announcer) and get a netbook for $199.99 after mail-in rebate. With built-in access to the nation's fastest 3g network. Only from at&t. These days every penny counts
“… " coming up. In this small sidecar,but i've still got room for the internet. With my new netbook from at&t. With its built-in it's fast and small, so it goes places i'm bill kurtis, i've got plenty of and the nation's fastest 3g network. Gun it, mick. (announcer) and get a netbook for $199.99 after mail-in rebate. With built-in access to the nation's fastest 3g network. Only from at&t. These days every penny counts …”
Public Storage (PSA) Discussed on Fox Business's Countdown to the Closing Bell
Public Storage is in the news. Find out how this impacts PSA trading on Ockham Research.
>> erer in the home stretch. Rally and financials helping the real estate investment trust, including PUBLIC STORAGE. This one trading higher, $2 a share. The u.S. Government has sought to delay a tax trial, a move
“… >> erer in the home stretch. Rally and financials helping the real estate investment trust, including PUBLIC STORAGE. This one trading higher, $2 a share. The u.S. Government has sought to delay a tax trial, a move …”
Public Storage (PSA) Discussed on Fox Business's Money For Breakfast
Public Storage is in the news. Find out how this impacts PSA trading on Ockham Research.
This, no doubt about it, but idea if you are looking for a place to hide out during these experiencing in the market. A little bit more of a bolder play in my opinion and somewhat contrarian is PUBLIC STORAGE, psa. This one is really come down really really hard but this is what I like about it. In the last two quarters beat the street pretty handily. The last quarter beat by 26%.
“… ly hard but this is what I like about it. In the last two quarters beat the street pretty handily. The last quarter beat by 26%. …”
Public Storage (PSA) Discussed on CNBC's Squawk Box
Public Storage is in the news. Find out how this impacts PSA trading on Ockham Research.
>> can you believe an american president fired the head of an industrial icony. >> well, better than what you saw the same day, the head of psa got knocked out but dlt french government insisted no that's totally the wrong you might as well just have nationalized the company. >> is henderson the man for
“… onalized the company. >> is henderson the man for …”
Public Storage (PSA) Discussed on Fox Business's Cavuto
Public Storage is in the news. Find out how this impacts PSA trading on Ockham Research.
Neil: how do you reverse it? Even the french don't get upset they are by teeing and throwing beer bottles a. >> the french put government money into psa with that condition they did not lay off anybody that is even worse. Neil: cool world goes the route if you are rich you are sick cecil which means you are
“… f you are rich you are sick cecil which means you are …”