Life Storage Profitability Analysis

LSI
 Stock
  

USD 135.57  2.62  1.97%   

For Life Storage profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Life Storage to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Life Storage utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Life Storage's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Life Storage over time as well as its relative position and ranking within its peers. Additionally, see Stocks Correlation.
  
The current Return on Sales is estimated to increase to 0.46, while Price to Sales Ratio is projected to decrease to 13.63. The current Net Income to Non Controlling Interests is estimated to increase to about 3.1 M, while Accumulated Other Comprehensive Income is projected to decrease to (4.4 M).

Life Storage Revenues

674.21 Million

Is Life Storage's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Life Storage. If investors know Life Storage will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Life Storage listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.47
Market Capitalization
11.6 B
Quarterly Revenue Growth YOY
0.37
Return On Assets
0.0422
Return On Equity
0.0981
The market value of Life Storage is measured differently than its book value, which is the value of Life Storage that is recorded on the company's balance sheet. Investors also form their own opinion of Life Storage's value that differs from its market value or its book value, called intrinsic value, which is Life Storage's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Life Storage's market value can be influenced by many factors that don't directly affect Life Storage's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Life Storage's value and its price as these two are different measures arrived at by different means. Investors typically determine Life Storage value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Life Storage's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Life Storage Operating Margin vs. Z Score Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Life Storage's current stock value. Our valuation model uses many indicators to compare Life Storage value to that of its competitors to determine the firm's financial worth.
Life Storage is currently regarded as number one stock in z score category among related companies. It is currently regarded as number one stock in operating margin category among related companies reporting about  34.42  of Operating Margin per Z Score. Life Storage Operating Margin is most likely to slightly grow in the upcoming years. The last year's value of Operating Margin was reported at 42.16. Comparative valuation analysis is a catch-all model that can be used if you cannot value Life Storage by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Life Storage's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Life Storage's earnings, one of the primary drivers of an investment's value.

Life Storage Operating Margin vs. Z Score

Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Life Storage 
Z Score 
 = 
Sum Of  
 
5 Factors 
1.8
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Life Storage 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
61.95 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Life Storage Operating Margin Comparison

Life Storage is currently under evaluation in operating margin category among related companies.

Life Storage Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Life Storage, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Life Storage will eventually generate negative long term returns. The profitability progress is the general direction of Life Storage's change in net profit over the period of time. It can combine multiple indicators of Life Storage, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-4.1 M-4.4 M
Consolidated Income252.2 M207.3 M
Net Income249.3 M205.4 M
Net Income Common Stock249.3 M205.4 M
Net Loss Income from Discontinued Operations-3.6 M-3.9 M
Net Income to Non Controlling Interests2.9 M3.1 M
Operating Income332.4 M279.2 M
Net Income Per Employee111.3 K88.2 K
Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self-storage facilities. Life Storage consistently provides responsive service to approximately 500,000 customers, making it a leader in the industry. Life Storage operates under REITIndustrial classification in the United States and is traded on New York Stock Exchange. It employs 2241 people.

Life Storage Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Life Storage. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Life Storage position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Life Storage's important profitability drivers and their relationship over time.

Life Storage Profitability Trends

Life Storage profitability trend refers to the progression of profit or loss within a business. An upward trend means that Life Storage's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Life Storage's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Life Storage Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Life Storage different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Life Storage in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Life Storage's future profitability.

Use Life Storage in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Life Storage position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Life Storage will appreciate offsetting losses from the drop in the long position's value.

Life Storage Pair Trading

Life Storage Pair Trading Analysis

The ability to find closely correlated positions to Life Storage could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Life Storage when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Life Storage - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Life Storage to buy it.
The correlation of Life Storage is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Life Storage moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Life Storage moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Life Storage can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Life Storage position

In addition to having Life Storage in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Precious Metals
Precious Metals Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Precious Metals theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Precious Metals Theme or any other thematic opportunities.
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Additionally, see Stocks Correlation. Note that the Life Storage information on this page should be used as a complementary analysis to other Life Storage's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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When running Life Storage price analysis, check to measure Life Storage's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Life Storage is operating at the current time. Most of Life Storage's value examination focuses on studying past and present price action to predict the probability of Life Storage's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Life Storage's price. Additionally, you may evaluate how the addition of Life Storage to your portfolios can decrease your overall portfolio volatility.
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To fully project Life Storage's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Life Storage at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Life Storage's income statement, its balance sheet, and the statement of cash flows.
Potential Life Storage investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Life Storage investors may work on each financial statement separately, they are all related. The changes in Life Storage's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Life Storage's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.