CUBESMART (CUBE) Stock Fundamental Analysis
USA - NYSE:CUBE - US2296631094 - REIT
37.26 USD
+0.63 (+1.72%)
37.26 USD
0 (0%)
Overall CUBE gets a fundamental rating of 5 out of 10. We evaluated CUBE against 30 industry peers in the Specialized REITs industry. CUBE has an excellent profitability rating, but there are concerns on its financial health. CUBE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CUBE was profitable.
In the past year CUBE had a positive cash flow from operations.
Each year in the past 5 years CUBE has been profitable.
Each year in the past 5 years CUBE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.59%, CUBE is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
CUBE has a better Return On Equity (13.32%) than 76.67% of its industry peers.
The Return On Invested Capital of CUBE (5.90%) is better than 73.33% of its industry peers.
CUBE had an Average Return On Invested Capital over the past 3 years of 5.88%. This is in line with the industry average of 4.78%.
The last Return On Invested Capital (5.90%) for CUBE is above the 3 year average (5.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 13.32% | ||
| ROIC | 5.9% |
ROA(3y)5.77%
ROA(5y)4.84%
ROE(3y)12.87%
ROE(5y)11.09%
ROIC(3y)5.88%
ROIC(5y)5.16%
1.3 Margins
The Profit Margin of CUBE (34.27%) is better than 80.00% of its industry peers.
CUBE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 43.37%, CUBE is doing good in the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CUBE has grown nicely.
CUBE has a Gross Margin (69.87%) which is comparable to the rest of the industry.
CUBE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.37% | ||
| PM (TTM) | 34.27% | ||
| GM | 69.87% |
OM growth 3Y8.65%
OM growth 5Y4.68%
PM growth 3Y10.53%
PM growth 5Y6.92%
GM growth 3Y0.34%
GM growth 5Y1.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CUBE is destroying value.
Compared to 1 year ago, CUBE has more shares outstanding
Compared to 5 years ago, CUBE has more shares outstanding
Compared to 1 year ago, CUBE has an improved debt to assets ratio.
2.2 Solvency
CUBE has an Altman-Z score of 1.32. This is a bad value and indicates that CUBE is not financially healthy and even has some risk of bankruptcy.
CUBE has a Altman-Z score of 1.32. This is in the better half of the industry: CUBE outperforms 66.67% of its industry peers.
The Debt to FCF ratio of CUBE is 6.28, which is on the high side as it means it would take CUBE, 6.28 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 6.28, CUBE belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
A Debt/Equity ratio of 1.22 is on the high side and indicates that CUBE has dependencies on debt financing.
The Debt to Equity ratio of CUBE (1.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.82
WACC7.19%
2.3 Liquidity
CUBE has a Current Ratio of 0.10. This is a bad value and indicates that CUBE is not financially healthy enough and could expect problems in meeting its short term obligations.
CUBE's Current ratio of 0.10 is on the low side compared to the rest of the industry. CUBE is outperformed by 90.00% of its industry peers.
A Quick Ratio of 0.10 indicates that CUBE may have some problems paying its short term obligations.
CUBE has a worse Quick ratio (0.10) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
CUBE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.86%.
CUBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.17% yearly.
CUBE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.19%.
CUBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.61% yearly.
EPS 1Y (TTM)-11.86%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%5.24%
3.2 Future
Based on estimates for the next years, CUBE will show a decrease in Earnings Per Share. The EPS will decrease by -1.17% on average per year.
Based on estimates for the next years, CUBE will show a small growth in Revenue. The Revenue will grow by 6.76% on average per year.
EPS Next Y-10.62%
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
EPS Next 5Y-1.17%
Revenue Next Year5.83%
Revenue Next 2Y4.58%
Revenue Next 3Y4.57%
Revenue Next 5Y6.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CUBE is valuated rather expensively with a Price/Earnings ratio of 23.88.
Based on the Price/Earnings ratio, CUBE is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.28, CUBE is valued at the same level.
With a Price/Forward Earnings ratio of 23.74, CUBE is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CUBE indicates a somewhat cheap valuation: CUBE is cheaper than 70.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CUBE to the average of the S&P500 Index (33.61), we can say CUBE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 23.74 |
4.2 Price Multiples
73.33% of the companies in the same industry are more expensive than CUBE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CUBE is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.59 | ||
| EV/EBITDA | 16.61 |
4.3 Compensation for Growth
The decent profitability rating of CUBE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.69
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
5. Dividend
5.1 Amount
CUBE has a Yearly Dividend Yield of 5.62%, which is a nice return.
CUBE's Dividend Yield is comparable with the industry average which is at 6.24.
Compared to an average S&P500 Dividend Yield of 2.36, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
5.2 History
The dividend of CUBE is nicely growing with an annual growth rate of 9.75%!
CUBE has been paying a dividend for at least 10 years, so it has a reliable track record.
CUBE has decreased its dividend recently.
Dividend Growth(5Y)9.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
125.21% of the earnings are spent on dividend by CUBE. This is not a sustainable payout ratio.
The Dividend Rate of CUBE has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP125.21%
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
37.26
+0.63 (+1.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.51%
Inst Owner Change-0.18%
Ins Owners0.77%
Ins Owner Change0.78%
Market Cap8.50B
Revenue(TTM)1.11B
Net Income(TTM)374.85M
Analysts74.4
Price Target46.2 (23.99%)
Short Float %2.55%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
Yearly Dividend2.04
Dividend Growth(5Y)9.75%
DP125.21%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.37%
Min EPS beat(2)-4.61%
Max EPS beat(2)-0.13%
EPS beat(4)0
Avg EPS beat(4)-2.85%
Min EPS beat(4)-4.61%
Max EPS beat(4)-0.13%
EPS beat(8)1
Avg EPS beat(8)-1.4%
EPS beat(12)4
Avg EPS beat(12)9.26%
EPS beat(16)7
Avg EPS beat(16)9.57%
Revenue beat(2)2
Avg Revenue beat(2)1.06%
Min Revenue beat(2)1.03%
Max Revenue beat(2)1.08%
Revenue beat(4)3
Avg Revenue beat(4)0.19%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)1.08%
Revenue beat(8)5
Avg Revenue beat(8)-0.49%
Revenue beat(12)6
Avg Revenue beat(12)-0.61%
Revenue beat(16)7
Avg Revenue beat(16)-0.92%
PT rev (1m)0.39%
PT rev (3m)-2.04%
EPS NQ rev (1m)-2.21%
EPS NQ rev (3m)-2.21%
EPS NY rev (1m)-2.13%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 23.74 | ||
| P/S | 7.77 | ||
| P/FCF | 15.59 | ||
| P/OCF | 13.84 | ||
| P/B | 3.02 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 16.61 |
EPS(TTM)1.56
EY4.19%
EPS(NY)1.57
Fwd EY4.21%
FCF(TTM)2.39
FCFY6.41%
OCF(TTM)2.69
OCFY7.22%
SpS4.8
BVpS12.34
TBVpS12.22
PEG (NY)N/A
PEG (5Y)1.69
Graham Number20.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 13.32% | ||
| ROCE | 7.47% | ||
| ROIC | 5.9% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 6% | ||
| OM | 43.37% | ||
| PM (TTM) | 34.27% | ||
| GM | 69.87% | ||
| FCFM | 49.82% |
ROA(3y)5.77%
ROA(5y)4.84%
ROE(3y)12.87%
ROE(5y)11.09%
ROIC(3y)5.88%
ROIC(5y)5.16%
ROICexc(3y)5.91%
ROICexc(5y)5.18%
ROICexgc(3y)5.98%
ROICexgc(5y)5.26%
ROCE(3y)7.44%
ROCE(5y)6.53%
ROICexgc growth 3Y19.62%
ROICexgc growth 5Y5.76%
ROICexc growth 3Y20.2%
ROICexc growth 5Y5.63%
OM growth 3Y8.65%
OM growth 5Y4.68%
PM growth 3Y10.53%
PM growth 5Y6.92%
GM growth 3Y0.34%
GM growth 5Y1.5%
F-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 6.28 | ||
| Debt/EBITDA | 4.83 | ||
| Cap/Depr | 29.44% | ||
| Cap/Sales | 6.3% | ||
| Interest Coverage | 4.77 | ||
| Cash Conversion | 86.65% | ||
| Profit Quality | 145.38% | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 1.32 |
F-Score4
WACC7.19%
ROIC/WACC0.82
Cap/Depr(3y)37.57%
Cap/Depr(5y)96.81%
Cap/Sales(3y)8.96%
Cap/Sales(5y)23.68%
Profit Quality(3y)143.78%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.86%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%-18.18%
EPS Next Y-10.62%
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
EPS Next 5Y-1.17%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%5.24%
Revenue Next Year5.83%
Revenue Next 2Y4.58%
Revenue Next 3Y4.57%
Revenue Next 5Y6.76%
EBIT growth 1Y-3.39%
EBIT growth 3Y18.46%
EBIT growth 5Y15.79%
EBIT Next Year48.55%
EBIT Next 3Y17.01%
EBIT Next 5Y16.94%
FCF growth 1Y1.92%
FCF growth 3Y27.5%
FCF growth 5Y25.34%
OCF growth 1Y1.63%
OCF growth 3Y12%
OCF growth 5Y13.72%
CUBESMART / CUBE FAQ
Can you provide the ChartMill fundamental rating for CUBESMART?
ChartMill assigns a fundamental rating of 5 / 10 to CUBE.
What is the valuation status for CUBE stock?
ChartMill assigns a valuation rating of 5 / 10 to CUBESMART (CUBE). This can be considered as Fairly Valued.
Can you provide the profitability details for CUBESMART?
CUBESMART (CUBE) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for CUBE stock?
The Earnings per Share (EPS) of CUBESMART (CUBE) is expected to decline by -10.62% in the next year.
Is the dividend of CUBESMART sustainable?
The dividend rating of CUBESMART (CUBE) is 5 / 10 and the dividend payout ratio is 125.21%.