Extra Space Storage Inc (EXR, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With its shares currently trading at $144.25 and experiencing a daily gain of 1.1%, alongside a three-month change of 2.58%, the company stands out in the competitive market. A detailed analysis, supported by the GF Score, indicates that Extra Space Storage Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. 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
With a GF Score of 94 out of 100, Extra Space Storage Inc demonstrates a high potential for market outperformance, driven by its exceptional growth and GF Value ranks.
Understanding Extra Space Storage Inc's Business
Extra Space Storage Inc, with a market cap of $30.54 billion and annual sales of $2.86 billion, operates as a fully integrated real estate investment trust. It owns, operates, and manages nearly 3,700 self-storage properties across 42 states, providing over 280 million net rentable square feet of storage space. The company's diverse ownership model includes wholly owned properties, joint ventures, and third-party managed facilities. This broad operational scope contributes to its robust revenue streams and profitability.
Profitability and Growth Metrics
Extra Space Storage Inc's Profitability Rank is impressive, standing at 9 out of 10, which highlights its superior ability to generate profits relative to its peers. The company's Gross Margin has consistently increased over the past five years, with recent figures showing a margin of 73.80% in 2023. This trend underscores its efficiency in converting revenue into profit.
Ranked highly in Growth, the company's 3-Year Revenue Growth Rate stands at 13.1%, outperforming 79.88% of companies in the REITs industry. Additionally, its EBITDA has seen a robust increase, with a three-year growth rate of 14.4%, highlighting its operational effectiveness and expansion capabilities.
Conclusion: A Promising Investment Opportunity
Considering Extra Space Storage Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score effectively highlights the company's exceptional position for potential market outperformance. Investors looking for robust investment opportunities may find Extra Space Storage Inc an attractive option.
For more insights into companies with strong GF Scores, GuruFocus Premium members can explore our exclusive 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.
