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Company name Extra Space Storage, Inc.
Stock ticker EXR
Live stock price [stckqut]EXR[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $68.89
Target stock price (averages with growth) $67.03
Target stock price (averages with no growth) $44.63
Target stock price (manual assumptions) $48.18

The following company description is from Google Finance: http://www.google.com/finance?q=exr

Extra Space Storage Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, manages, acquires, develops and redevelops professionally managed self-storage facilities. As of December 31, 2011, Extra Space Storage Inc. held ownership interests in 697 operating properties. Of these operating properties, 356 are wholly owned, and 341 are owned in joint venture partnerships. An additional 185 operating properties that are owned by franchisees or third-parties in exchange for a management fee, bringing the total number of operating properties, which it owns and/or manages to 882. The Company operates in three segments: property management, acquisition and development; rental operations, and tenant reinsurance.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. The main reasons that the company has fallen to a Fair Company are the lack of increase in its P/E ratio and its revenue and income per employee. These items tend to be a bit cyclical and self-correcting so I am leaving the company on my Watch List for now.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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Do not be fooled by guarantees: all investment has some level of risk! The key is to understand the risk and plan for it appropriately. In the case of an individual stock, the latter chapters of my book, The Confident Investor, will help you evaluate the company’s health and the appropriate timing in the market.

You need to make sure that you use a respectable stock broker to handle your transactions. The first check is to make sure that they are a member of the Securities Investor Protection Corporation (SIPC).

SIPC is the first line of defense in the event a brokerage firm fails and owes customers cash and securities that are missing from customer accounts. From its creation by Congress in 1970, SIPC has advanced hundreds of millions of dollars in order to make possible the recovery of assets for investors. When a brokerage is closed due financial difficulties and customer assets are missing, SIPC works to return customers’ cash, stock and other securities.

If you are about to entrust some of your funds with an individual or securities firm, it is worth your while to do a background check. It may save you both money and future aggravation.

The Central Registration Depository system (CRD) is a source that you can turn to for broker research. The CRD is a computerized database that holds the license and registration information on hundreds of thousands of stockbrokers and thousands of brokerage firms throughout the United States.

In most cases, a stockbroker must be licensed or registered. Some states may require insurance agents who sell variable annuities or variable life policies to be licensed. Therefore, these individuals’ records will be maintained on the CRD. The CRD will tell you about your stockbroker’s past, including employment history, securities examination scores, registration status, and disciplinary issues.