Extra Space Storage (EXR)
Real Estate · $33.4B market cap · SEC CIK 0001289490
ahead of 72% of the S&P 500 · #8 of 30 in Real Estate
Next reports on Feb 17, 2027, after the close, with analysts expecting $1.18 in earnings per share.
52-week range $125.71 to $163.18. 3% below its 52-week high and 26% above its low.
The case for EXR
- Generated $1.3B of free cash flow in FY2025, 38% of revenue.
- 28% of revenue drops through to net profit.
- Pays a 5.1% dividend while you wait.
- Has compounded revenue at 20.0% a year over five years.
- Gross margin of 71% absorbs cost shocks.
The case against
- Expensive for its growth: 34.9× earnings, where 8%+ a year of growth would justify about 20×.
- Priced at 9.7× sales with revenue growing only 4.2%.
- Growth is slowing: revenue up 4.2% this year against 20.0% a year over five.
- Return on equity of only 7%.
- Current liabilities exceed current assets (ratio 0.76).
- Dividend takes 143% of earnings, leaving little cushion.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Real Estate companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 55 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 50 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 63 |
| Momentumhow the price has behaved lately | 77 |
| Stabilityhow violently it moves, what it owes and what it pays you | 68 |
- Each factor except momentum is half fixed thresholds, half rank among the 30 Real Estate companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +4.2% |
|---|---|
| Over 5 years | +20.0% a year |
| FY2025 revenue | $3.4B (+4%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $1.3B |
|---|---|
| Of revenue | 38% |
| Of profit | 132% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 71% |
|---|---|
| Operating margin | 41% |
| Net margin, FY24 → FY25 → now | 26.2% → 28.8% → 27.8% |
Debt vs. cash
Is the balance sheet healthy? Mostly, with some debt to carry
| Cash | $139M |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
| Years to repay | n/a |
| Debt / equity | 1.03× |
Valuation
Is the stock price reasonable? Mixed: dear on earnings, fair on cash flow
| P/E | 34.9× |
|---|---|
| Fair P/E for its growth | 20× |
| Price / operating cash flow | 18.1× |
| Forward P/E | 31.8× |
| EV / EBITDA | 21.7× |
At 34.9× earnings it trades well above the 20× that 8%+ a year of growth would justify. At 18.1× operating cash flow it trades close to that same mark; for a REIT that counts for more than earnings, since depreciation makes its P/E look worse than the business is.
The financials, five years deep
Pulled from Extra Space Storage's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $3.4B | $3.3B | $2.6B | $1.9B | $1.6B |
| Change on the year | +4% | +27% | +33% | +22% | — |
| Free cash flow | |||||
| Free cash flow | $1.3B | $1.4B | $1.3B | $44.9M | — |
| Of revenue | 38% | 43% | 49% | 2% | — |
| Profit margins | |||||
| Operating margin | 41.8% | 40.6% | 45.7% | 54.6% | 61.9% |
| Net margin | 28.8% | 26.2% | 31.4% | 44.7% | 52.5% |
| Debt vs. cash | |||||
| Cash | $139M | $138M | $99.1M | $92.9M | $71.1M |
What Extra Space Storage says it does
Extra Space Storage Inc. (“we,” “our,” “us” or the “Company”) is a fully integrated, self-administered and self-managed real estate investment trust (“REIT”) formed as a Maryland corporation on April 30, 2004. We closed our initial public offering (“IPO”) on August 17, 2004. Our common stock is traded on the New York Stock Exchange under the symbol “EXR.” We were formed to continue the business of Extra Space Storage LLC and its subsidiaries, which had engaged in the self-storage business since 1977. These companies were reorganized after the consummation of our IPO and various formation transactions. Our executive management team and board of directors have extensive experience and ownership positions in the Company. Substantially all of our business is conducted through Extra Space Storage LP (the “Operating Partnership”). Our primary assets are general partner and limited partner interests in the Operating Partnership. This…