_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Life Storage, Inc. (XNYS:LSI) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
LSI
Name:
LIFE STORAGE, INC. (XNYS:LSI)
Sector:
105.34M
Industry:
REIT�Industrial
CEO:
Mr. Joseph Saffire
Total Employees:
2,241
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 39.57% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF LIFE STORAGE, INC.(LSI) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND REIT�INDUSTRIAL INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
127.71
One Month Price Target:
$128.12
Six Month Price Target :
$130.14
Likely Price in One Year's Time:
Ticker:
$132.57
Likely Trading Range Today Under (Normal Volatility)
$127.4
Price Upper limit ($) :
$128.29
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$122.5
This week:
$116.06
This month :
$104.41
Other Primary facts
Market Cap:
10.95B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
84.38M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
10.5%
-19.75%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$151.85
$140.57
$103.57
$114.85
Medium risk (<10%) entry points
Buy Call
Sell Call
$136.89
Buy Put:
Sell Put:
$134.49
$118.49
$120.93
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
LSI
Sharpe Ratio:
4.83%
Comparison:
LSI, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 99.37% higher than the industry
& ratio is 111.77% higher than the market/S&P 500 average
Average Returns/Yield of
LSI
Daily returns:
0.11%
Weekly returns:
0.54%
Monthly returns:
2.14%
Yearly returns:
14.06%
Comparison of returns:
Average annual returns/yield (last 3 years) is 83.01% above industry average
Classification:
LSI, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.12
Statistical test of Returns:
LSI has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.04%
Weekly Volatility:
4.56%
Monthly Volatility:
9.12%
Yearly Volatility:
31.58%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.04%
Volatility in last five trading days has been 0.16% above long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.08%
Weekly VaR:
-9.12%
Monthly VaR:
-18.24%
How Much Can the price of
LSI
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-15%
Worst case (decline):
-63.20%
This translates to price declining to:
$108.68
This translates to price declining to:
$47.00
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
LSI is a 28.76% riskier investment compared to the market/S&P 500 & is 10.31% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -7.37% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
LSI
Beta in relation to market/S&P 500--0.57
Expected beta in 1 year's time:
0.684
Expected beta in 3 year's time:
0.967
Unlevered (debt free) Beta:
-
Beta in relation to Nasdaq (XNAS):
0.576
Beta in relation to all global stocks::
0.655
Beta Comparison & Analysis
Beta of competitors/peers::
0.919
Beta is -38.39% lower than peers
Average Industry Beta:
0.735
Beta is -22.95% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
0.187
Alpha is 218.26% above industry average alpha yield
Alpha is 1191% higher than market/& is unsustainably high
Analysis of Cost of Capital of
LSI
Equity cost of capital:
0.070
Equity cost of capital is -14.12% below industry mean WACC
Unlevered (without debt) cost of capital:
-
Before-tax cost of debt:
3.07%
After-tax cost of debt:
2.43%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.43%
WACC is -8.49% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$9.50
Revenue growth rate per share of (3Y):
3.1
Annual revenue growth rate is 108.16% above the industry average
EPS:
$3.41
Expected Annual growth rate of EPS (3Y):
-59.82%
Expected future EPS growth rate is -768.95% lower than the REIT�Industrial industry
Free cash flow (FCF) per share:
$4.73
Balance sheet equity growth per share: 27.41%
Equity growth rate per share is 122.99% higher than the industry
Debt per share
$33.01
EBITDA per share
$5.91
Valuation Analysis Today of
LSI
P/E Ratio:
34
P/E Ratio of Competitors/Peers:
47.21
P/E ratio is -27.98% lower than main peers & is -49.50% lower than the industry
Stock price/value with industry average P/E ratio: $229.57
LSI is -44.37% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $73.94
Present value of the expected future dividends only: $60.19
P/S (Price to Sales ratio):
13.45
Price to sales ratio is 0.43% above the industry mean
P/B (Price to book value ratio):
3.1
Price to free cash flow: 26.99
-
Net income growth rate (3Y):
18.47%
Net income growth rate is -1.38% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 33.11%
Dividend yeild: 2.82%
Previous Dividend: $1.00
Previous adjusted dividend: $1.00
Previous Dividend: $3.60
Expected next dividend best case: $1.11
Expected next dividend worst case: $0.89
Average dividend payment (long-term): $0.98
Average dividend increase/decrease (growth rate) % per period: 0.99%
Expected next dividend payment date: 25/07/2022
Expected next dividend record date: 13/07/2022
Expected next dividend declaration date: 30/06/2022
Previous dividend payment date: 26/04/2022
Previous dividend record date: 14/04/2022
Previous dividend declaration date: 04/01/2022
Dividend History:
2022-04-13--$1.00
2021-10-12--$0.86
2021-04-13--$0.74
2022-01-13--$1.00
2021-07-13--$0.74
2021-01-14--$1.11
Dividend growth rate is -110.77% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
80.17%
Net debt to equity ratio:
82.61%
Debt to assets ratio:
41.21%
Net debt to assets ratio:
42.47%
Debt-to-asset ratio is -75.54% below industry average
Ability to repay debt:
Interest coverage ratio:
5.56
Interest coverage ratio is -11152.44% less than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 1.25%
Analysis of Key Statistics
Correlation of price movement with the market:
0.613
Statistical significance of correlation:
LSI has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.617
Stock price is -0.56% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.617
Correlation of price movement with Nasdaq (^IXIC):
0.054
Covariance of price movement with the market:
0.064
Kurtosis
15.951
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-1.394
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
LSI
Gross Profit Margin Ratio:
269%
Operating Profit Margin Ratio:
42.31%
Operating profit margin is 31.62% higher than the industry
Net Profit Margin Ratio:
269%
Effective Tax Rate:
-
-
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
7.27%
Return on equity (ROE) is -12.47% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
3.74%
Return on assets (ROA) is -3.68% lower than the industry
Financial Leverage:
1.7x
Current Ratio:
0.3
Current ratio is -89.84% below industry average
Cash Conversion Cycle (days):
8.2
Cash conversion cycle is -54.82% below industry average
The remaining useful life of property plant & equipment is: 6.7 years
Stock based compensation to net income ratio:
0.66%
In-depth Efficiency Analysis
Revenue generated per employee:
357.6K
Each employee generates -78% less revenue than industry average revenue per employee
EBITDA generated per employee:
222.5K
Each employee generates -84% less EBITDA than industry average revenue per employee
Profit generated per employee:
112.7K
Each employee generates -83% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
47.0K
Each employee generates -76% less free cash flow than industry average revenue per employee
Assets/Capital per employee
3.0M
Each employee generates -76% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
LSI
REXFORD INDUSTRIAL REALTY, INC (XNYS:REXR)
STARWOOD PROPERTY TRUST, INC. (XNYS:STWD)
Apartment Income REIT Corp. (XNYS:AIRC)
BRIXMOR PROPERTY GROUP INC. (XNYS:BRX)
FIRST INDUSTRIAL REALTY TRUST, INC. (XNYS:FR)
AMERICAN CAMPUS COMMUNITIES, INC. (XNYS:ACC)
CUBESMART (XNYS:CUBE)
EASTGROUP PROPERTIES, INC. (XNYS:EGP)
AMERICAN HOMES 4 RENT (XNYS:AMH)
Current Analyst Ratings
Strong buy�4%
Buy�0%
Hold�38%
Sell�17%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
801.32M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
256.09M
545.23M
-
62.30M
62.30M
-
143.88M
206.19M
841.00K
89.68M
156.36M
498.66M
339.04M
252.62M
256.54M
-
252.62M
Statement of Cash Flow
Date:
Period:
46.40M
Differed Income Tax :
10.00K
Stock Based Compensation :
1.66M
Change in Working Capital :
- 21222.00K
Accounts Receivables:
- 406.00K
Other Working Capital:
1.28M
Other Non-Cash Items:
3.08M
Net Cash Provided by Operating Activities:
105.34M
Investments in PP&E:
-
Net Acquisitions:
- 3450.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
50.21M
-
50.21M
19.01M
-
12.46M
81.68M
-
-
16.50M
214.64M
-
6.45B
6.68B
-
6.76B
-
135.00M
-
29.50M
112.14M
276.63M
2.79B
222.54M
3.01B
-
3.28B
843.00K
- 313851.00K
- 3895.0K
3.79B
March 31, 2022 at 6:00:00 AM
462.28M
3.47B
6.76B
-
2.92B
2.9B
-
- 365387.00K
- 368837.00K
- 35129.00K
92.94M
- 75.00K
- 83637.00K
168.02M
142.12M
-
- 121370.00K
55.06M
176.43M
105.34M
-
105.34M
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
LSI
2023
2024
2025
2026
2027
$110.67
$114.89
$119.26
$123.80
$128.51