NYSE · Real Estate

Extra Space Storage Inc.

EXR · REIT - Industrial

$145.33

▲ 1.41 (0.98%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 70.1%

Operating Margin 42.9%

Net Income Margin 28.2%

Fin. Health

D⤢

Years to Pay Off Debt 57.8 yrs

Working Capital vs Long-Term Debt -$11.8B

Working Capital $207M

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 2.30x

Cash Flow

A⤢

Free Cash Flow $487M

CapEx % of Net Income 1.2%

Owner Earnings $430M

Profitability

Gross Profit Margin 70.1%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 42.9%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 28.2%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 57.8 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$11.8B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $207M

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $487M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 1.2%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $430M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Extra Space Storage Inc.

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2025, the Company owned and/or operated 4,281 self-storage stores in 43 states and Washington, D.C. Its stores comprise approximately 2.9 million units and approximately 330.4 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States. Extra Space Storage Inc. was incorporated in 1977 in Maryland, USA.

Market Data

Market Cap $32.1B

Enterprise Value $45.6B

P/E (TTM) 32.66

Dividend Yield 4.50%

Exchange NYSE

Key Margins

Gross Profit 70.1%

Operating Margin 42.9%

Net Margin 28.2%

Company Info

Sector Real Estate

Industry REIT - Industrial

Employees 8393

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Extra Space Storage Inc. at $145.33.

The business passes only 1 of 7 of Graham's defensive criteria — well below his required standard.

At $145.33, the stock trades at a 261% premium to its Graham Number of $40.23. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	70.1%▼	71.0%•	N/A
Operating Margin %	42.9%▼	44.0%•	N/A
Net Income %	28.2%▼	33.5%•	N/A
Diluted EPS	1.14▼	1.36•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025
Total Assets	$29.1B	$29.3B
Total Debt	$13.9B▼	$14.0B
Working Capital	$207M▼	$239M
Years to Pay Debt	57.85	48.68

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$487M▲	$362M•	N/A
Owner Earnings	$430M	$473M	N/A
CapEx % of Net Income	1.2%	1.9%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	8	1,131
Tax Rate For Calcs	0	0
Normalized EBITDA	608,651	612,619
Total Unusual Items	207	39,088
Total Unusual Items Excluding Goodwill	207	39,088
Net Income From Continuing Operation Net Minority Interest	240,977	287,395
Reconciled Depreciation	185,795	180,089
Reconciled Cost Of Revenue	256,170	248,490
EBITDA	608,858	651,707
EBIT	423,063	471,618
Net Interest Income	-120,311	-123,137
Interest Expense	159,854	161,786
Interest Income	39,543	38,649
Normalized Income	240,778	249,438
Net Income From Continuing And Discontinued Operation	240,977	287,395
Total Expenses	488,474	480,517
Total Operating Income As Reported	367,553	370,871
Diluted Average Shares	220,323	221,053
Basic Average Shares	210,897	211,648
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	251,291	286,951
Average Dilution Earnings	10,739		-24,136
Net Income Common Stockholders	240,552	286,951
Otherunder Preferred Stock Dividend	425	444
Net Income	240,977	287,395
Minority Interests	-11,443	-13,469
Net Income Including Noncontrolling Interests	252,420	300,864
Net Income Continuous Operations	252,420	300,864
Tax Provision	10,789	8,968
Pretax Income	263,209	309,832
Other Income Expense	15,967	56,019
Special Income Charges	207	45,167	0
Gain On Sale Of Business	207	45,167	0
Impairment Of Capital Assets		0	0
Earnings From Equity Interest	15,760	16,931
Gain On Sale Of Security		-6,079	37,714
Net Non Operating Interest Income Expense	-120,311	-123,137
Interest Expense Non Operating	159,854	161,786
Interest Income Non Operating	39,543	38,649
Operating Income	367,553	376,950
Operating Expense	232,304	232,027
Depreciation Amortization Depletion Income Statement	185,795	180,089
Depreciation And Amortization In Income Statement	185,795	180,089
Selling General And Administration	46,509	51,938
General And Administrative Expense	46,509	51,938
Other Gand A	46,509	51,938
Gross Profit	599,857	608,977
Cost Of Revenue	256,170	248,490
Total Revenue	856,027	857,467
Operating Revenue	856,027	857,467

Balance Sheet

	2026	2025
Ordinary Shares Number	211,197	211,155
Share Issued	211,197	211,155
Net Debt	13,031,539	13,091,731
Total Debt	13,940,213	13,991,757
Tangible Book Value	12,836,055	13,283,031
Invested Capital	26,503,005	26,663,817
Working Capital	207,197	239,198
Net Tangible Assets	12,836,055	13,283,031
Capital Lease Obligations	769,688	761,106
Common Stock Equity	13,332,480	13,433,166
Total Capitalization	25,350,505	25,439,817
Total Equity Gross Minority Interest	14,212,502	14,324,036
Minority Interest	880,022	890,870
Stockholders Equity	13,332,480	13,433,166
Gains Losses Not Affecting Retained Earnings	314	-420
Other Equity Adjustments	314	-420
Retained Earnings	-1,552,391	-1,449,172
Additional Paid In Capital	14,882,445	14,880,646
Capital Stock	2,112	2,112
Common Stock	2,112	2,112
Total Liabilities Net Minority Interest	14,886,868	14,940,010
Total Non Current Liabilities Net Minority Interest	13,285,266	13,284,726
Other Non Current Liabilities	497,553	516,969
Long Term Debt And Capital Lease Obligation	12,787,713	12,767,757
Long Term Capital Lease Obligation	769,688	761,106
Long Term Debt	12,018,025	12,006,651
Current Liabilities	1,601,602	1,655,284
Current Debt And Capital Lease Obligation	1,152,500	1,224,000
Current Debt	1,152,500	1,224,000
Line Of Credit	302,500	1,224,000
Commercial Paper	850,000
Payables And Accrued Expenses	449,102	431,284
Payables	449,102	431,284
Dividends Payable	74,288	73,701
Accounts Payable	374,814	357,583
Total Assets	29,099,370	29,264,046
Total Non Current Assets	27,290,571	27,369,564
Non Current Deferred Assets	14,490	15,335
Financial Assets	2,712	3,362
Investments And Advances	1,369,602	1,366,783
Investmentin Financial Assets	300,000	300,000
Held To Maturity Securities	300,000	300,000
Long Term Equity Investment	1,069,602	1,066,783
Investment Properties	24,607,786	25,036,619
Goodwill And Other Intangible Assets	496,425	150,135
Other Intangible Assets	325,614	-20,676
Goodwill	170,811	170,811
Net PPE	799,556	797,330
Gross PPE	799,556	797,330
Other Properties	737,606	732,176
Machinery Furniture Equipment	61,950	65,154
Current Assets	1,808,799	1,894,482
Restricted Cash	4,419	4,260
Prepaid Assets	91,480	102,656
Receivables	1,573,914	1,648,646
Other Receivables	6,375	6,375
Notes Receivable	1,452,159	1,500,151
Accounts Receivable	115,380	142,120
Cash Cash Equivalents And Short Term Investments	138,986	138,920
Cash And Cash Equivalents	138,986	138,920

Cash Flow

	2026	2025	2024
Free Cash Flow	487,000	362,362
Repurchase Of Capital Stock	-7,443	-140,933
Repayment Of Debt	-4,248,783	-4,468,038
Issuance Of Debt	4,173,770	4,746,800
Capital Expenditure	-2,855	-5,435
Interest Paid Supplemental Data	161,182	131,253
Income Tax Paid Supplemental Data			3,137
End Cash Position	143,405	143,180
Beginning Cash Position	143,180	116,234
Changes In Cash	225
Financing Cash Flow	-442,129	-224,300
Cash Flow From Continuing Financing Activities	-442,129	-224,300
Net Other Financing Charges	-16,920	-19,761
Cash Dividends Paid	-342,753	-342,368
Common Stock Dividend Paid	-342,753	-342,368
Net Preferred Stock Issuance	-6,000		0
Preferred Stock Payments	-6,000		0
Net Common Stock Issuance	-1,443	-140,933
Common Stock Payments	-1,443	-140,933
Net Issuance Payments Of Debt	-75,013	278,762
Net Long Term Debt Issuance	-75,013	278,762
Long Term Debt Payments	-4,248,783	-4,468,038
Long Term Debt Issuance	4,173,770	4,746,800
Investing Cash Flow	-47,501	-116,551
Cash Flow From Continuing Investing Activities	-47,501	-116,551
Net Other Investing Changes	55,702	19,871
Net Investment Properties Purchase And Sale	-94,785	-171,242
Sale Of Investment Properties	6,103	199,436
Purchase Of Investment Properties	-100,888	-370,678
Net Business Purchase And Sale	-5,563	40,255
Sale Of Business		60,182	2,414
Purchase Of Business	-5,563	-19,927
Net PPE Purchase And Sale	-2,855	-5,435
Purchase Of PPE	-2,855	-5,435
Operating Cash Flow	489,855	367,797
Cash Flow From Continuing Operating Activities	489,855	367,797
Dividend Received Cfo	3,332	4,429
Change In Working Capital	29,684	-101,591
Change In Other Current Liabilities	-18,492	-36,945
Change In Other Current Assets	38,187	49,249
Change In Payables And Accrued Expense	9,989	-113,895
Other Non Cash Items	11,225	10,297
Stock Based Compensation	7,606	12,797
Depreciation Amortization Depletion	185,795	180,089
Depreciation And Amortization	185,795	180,089
Operating Gains Losses	-207	-39,088
Earnings Losses From Equity Investments	-207	-45,167	0
Gain Loss On Investment Securities		6,079	-37,714
Net Income From Continuing Operations	252,420	300,864

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $820M ▲ $856M +4.4%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 70.6% ▲ 70.1% -0.6pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 44.8% ▲ 42.9% -1.9pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 33.0% ▼ 28.2% -4.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$856M/qtr (≈$3.4B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.13x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$487M

vs Positive

Operating Cash Flow

$490M

Latest quarter · Buffett's cash reality check

ROIC

1.1%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

2.2x

Net Assets: $14.2B

Peers & Industry

No auto-detected peers for REIT - Industrial. You can manually compare EXR against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.94%

Low — management has little skin in the game

Return on Equity (ROE)

1.8%

Weak — poor returns on equity

Return on Assets (ROA)

0.8%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$150M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-0.4% YoY

Debt is declining — management is deleveraging

Leadership Team

Joseph Daniel Margolis

CEO & Director

Age 64

Pay: $3,048,172

1.265% of net income

Noah Springer

President

Age 45

Pay: $1,283,956

0.533% of net income

Jeffrey Norman

Executive VP & CFO

Age 44

Pay: $891,675

0.370% of net income

Matthew Herrington

Executive VP & COO

Age 43

Pay: $719,013

0.298% of net income

Timothy Arthurs

Senior Vice President of Operations

Age 66

Pay: $203,118

0.084% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	10.65%	22,489,210
Vanguard Portfolio Management LLC	8.70%	18,383,901
Cohen & Steers Inc.	7.77%	16,412,456
Vanguard Capital Management LLC	6.52%	13,764,221
State Street Corporation	6.48%	13,693,546
Principal Financial Group, Inc.	3.04%	6,430,326
Capital Research Global Investors	2.96%	6,254,188
Geode Capital Management, LLC	2.88%	6,085,681

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

1.21

Moderate volatility — moves slightly more than market

Short Interest

3.3% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.98x

Conservative balance sheet — low financial risk

Current Ratio

0.69x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $125.71 Current: $145.33 High: $155.19

Currently at 67% of 52-week range

Extra Space Storage Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis