Is EXR a high-quality business?

AlphaMadera's AlphaQuality grade scores Extra Space Storage Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how EXR compares to a Buffett-style quality bar.

What is Extra Space Storage Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to EXR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes EXR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

EXR - Extra Space Storage Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $153.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Real Estate Investment Trust

AlphaQuality — archetype-weighted quantitative grade

C 53.5 / 100 composite

Composite Grade

Composite of six pillars weighted for real estate investment trust businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

A- 85.0

Scored using FFO margin — REIT-archetype substitution.

FFO Margin 50.0% 85/100

Capital Efficiency

Weight: 15%

D- 27.4

5yr Avg ROE 6.4% 42/100
5yr Share-Count CAGR 10.9% 0/100

Growth Quality

Weight: 15%

C 56.9

Scored using FFO/share — REIT-archetype substitution.

5yr FFO/Share CAGR 1.1% 38/100
Positive-FFO Years (5) 5/5 100/100

Cash Generation

Weight: 15%

F 26.1

Scored using AFFO dividend coverage — REIT substitution.

AFFO Dividend Coverage 0.00x 0/100
5yr FCF/NI 1.67x 87/100

Balance Sheet

Weight: 25%

C 54.6

Scored using Debt/Assets — REIT-archetype substitution.

Debt / Assets 51.2% 63/100
Interest Coverage (EBIT/Int) 2.68x 40/100

Stability

Weight: 10%

B- 64.0

EPS Volatility (σ/μ) 0.35 50/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

3 of 3 gurus held; 2 new buys; 1 added.

Holders: 3 +2
Avg Δ position: +115.5%
New buys: 2
Full exits: 0

Dalio new
Laffont new
Greenblatt increased +116%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — FFO Margin
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr FFO/Share CAGR, Positive-FFO Years (5)
Cash Generation (15%) — AFFO Dividend Coverage, 5yr FCF/NI
Balance Sheet (25%) — Debt / Assets, Interest Coverage (EBIT/Int)
Stability (10%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.