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 $146.22, Extra Space Storage Inc has witnessed a daily loss of 0.53%, marked against a three-month change of -7.39%. 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: 10/10
- 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 GF Value rank and Growth rank, and a slightly lower Financial strength rank, GuruFocus assigned Extra Space Storage Inc the GF Score of 93 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 $30.94 billion and sales of $2.56 billion, operates with a remarkable operating margin of 48.31%. As a fully integrated real estate investment trust, it owns, operates, and manages almost 3,700 self-storage properties in 42 states, offering over 280 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.
Profitability Rank Breakdown
The Profitability Rank of Extra Space Storage Inc reflects its impressive ability to generate profits when compared to its peers. The company's Gross Margin has consistently risen over the past five years, with figures showcasing an increase from 72.07% in 2019 to 75.63% in 2022, before a slight dip to 73.80% in 2023. This trend highlights Extra Space Storage Inc's growing efficiency in converting revenue into profit. Additionally, the firm's Predictability Rank of 4.5 stars out of five emphasizes its consistent operational performance, bolstering investor confidence.
Growth Rank Breakdown
Extra Space Storage Inc's high Growth Rank underscores its dedication to business expansion. The company's 3-Year Revenue Growth Rate of 13.1% surpasses 82.98% of the companies in the REITs industry. Furthermore, the company has experienced a significant increase in EBITDA over the past few years, with a three-year growth rate of 14.4% and a five-year rate of 13%. This demonstrates Extra Space Storage Inc's sustained ability to drive growth.
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 seeking to capitalize on such robust financial health and promising growth prospects may find Extra Space Storage Inc an attractive option. For those looking to explore further, GuruFocus Premium members can discover more companies with strong GF Scores using 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.
