U.S. Markets open in 9 hrs 15 mins

An Examination Of PS Business Parks, Inc. (NYSE:PSB)

Simply Wall St

PS Business Parks, Inc. (NYSE:PSB) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of PSB, it is a financially-robust , dividend-paying company with a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on PS Business Parks here.

Excellent balance sheet with solid track record and pays a dividend

In the previous year, PSB has ramped up its bottom line by 39%, with its latest earnings level surpassing its average level over the last five years. Not only did PSB outperformed its past performance, its growth also exceeded the REITs industry expansion, which generated a 16% earnings growth. This is an notable feat for the company. PSB currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$6.0b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NYSE:PSB Income Statement, July 22nd 2019

For those seeking income streams from their portfolio, PSB is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.4%.

NYSE:PSB Historical Dividend Yield, July 22nd 2019

Next Steps:

For PS Business Parks, there are three key aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for PSB’s future growth? Take a look at our free research report of analyst consensus for PSB’s outlook.
  2. Valuation: What is PSB worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PSB is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PSB? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.