Life Storage Price to Book vs. Operating Margin

LSI
 Stock
  

USD 112.62  1.95  1.76%   

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 Correlation Analysis.
  
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.
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. Price to Book 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 price to book category among related companies. It is currently regarded as number one stock in operating margin category among related companies reporting about  18.27  of Operating Margin per Price to Book. . 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. Price to Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Life Storage 
P/B 
 = 
MV Per Share 
BV Per Share 
3.39 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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 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.
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.

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.

Did You Try This Idea?

Run Wireless Thematic Idea Now

Wireless
Wireless Theme
Companies providing wireless technology and communication services. The Wireless theme has 40 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 Wireless Theme or any other thematic opportunities.
View All  Next Launch
Additionally, see Correlation Analysis. You can also try Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Complementary Tools for analysis

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.
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
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.