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 $150.78, the company has enjoyed a daily gain of 1.43% and an impressive three-month increase of 7.56%. 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 of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. 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. Extra Space Storage Inc boasts a GF Score of 93, signaling strong future performance potential.
- Financial strength rank: 4/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 7/10
Understanding Extra Space Storage Inc's Business
Extra Space Storage Inc is a fully integrated real estate investment trust (REIT) that owns, operates, and manages nearly 3,700 self-storage properties across 42 states. The company boasts over 280 million net rentable square feet of storage space. Approximately half of these properties are wholly owned, with others managed through joint ventures or managed by Extra Space Storage for a fee. With a market cap of $31.92 billion and annual sales of $2.86 billion, the company demonstrates a robust operating margin of 45.83%.
Profitability and Growth Metrics
Extra Space Storage Inc's Profitability Rank is notably high among its peers, reflecting its effective revenue conversion into profit. 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 highlights the company's increasing efficiency in profit generation.
Ranked highly in Growth, Extra Space Storage Inc is committed to expanding its operations. The company's 3-Year Revenue Growth Rate of 13.1% outperforms 79.59% of companies in the REITs industry. Additionally, its EBITDA growth over the past three years stands at 14.4%, underscoring its capability to drive growth and operational efficiency.
Conclusion: A Promising Investment?
Considering Extra Space Storage Inc's strong financial strength, impressive profitability, and robust growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for solid returns might find Extra Space Storage Inc an attractive option. For more insights into companies with strong GF Scores, consider exploring our 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.
