CUBESMART (CUBE) Stock Fundamental Analysis
USA - NYSE:CUBE - US2296631094 - REIT
36.88 USD
-0.38 (-1.02%)
36.88 USD
0 (0%)
CUBE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. While CUBE has a great profitability rating, there are quite some concerns on its financial health. CUBE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CUBE had positive earnings in the past year.
In the past year CUBE had a positive cash flow from operations.
In the past 5 years CUBE has always been profitable.
CUBE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CUBE's Return On Assets of 5.59% is fine compared to the rest of the industry. CUBE outperforms 76.67% of its industry peers.
The Return On Equity of CUBE (13.32%) is better than 76.67% of its industry peers.
With a decent Return On Invested Capital value of 5.90%, CUBE is doing good in the industry, outperforming 73.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CUBE 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
CUBE has a Profit Margin of 34.27%. This is in the better half of the industry: CUBE outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of CUBE has grown nicely.
CUBE has a Operating Margin of 43.37%. This is in the better half of the industry: CUBE outperforms 70.00% of its industry peers.
CUBE's Operating Margin has improved in the last couple of years.
CUBE has a Gross Margin (69.87%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CUBE has remained more or less at the same level.
| 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
CUBE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CUBE has more shares outstanding
The number of shares outstanding for CUBE has been increased compared to 5 years ago.
The debt/assets ratio for CUBE has been reduced compared to a year ago.
2.2 Solvency
CUBE has an Altman-Z score of 1.34. This is a bad value and indicates that CUBE is not financially healthy and even has some risk of bankruptcy.
CUBE has a better Altman-Z score (1.34) than 66.67% of its industry peers.
CUBE has a debt to FCF ratio of 6.28. This is a slightly negative value and a sign of low solvency as CUBE would need 6.28 years to pay back of 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.
CUBE has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
CUBE has a Debt to Equity ratio of 1.22. This is comparable to the rest of the industry: CUBE outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.82
WACC7.21%
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.
The Current ratio of CUBE (0.10) is worse than 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's Quick 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
The earnings per share for CUBE have decreased strongly by -11.86% in the last year.
Measured over the past years, CUBE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.17% on average per year.
CUBE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.19%.
Measured over the past years, CUBE shows a quite strong growth in Revenue. The Revenue has been growing by 10.61% on average per year.
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
The Earnings Per Share is expected to decrease by -1.17% on average over the next years.
The Revenue is expected to grow by 6.76% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.64, the valuation of CUBE can be described as rather expensive.
CUBE's Price/Earnings ratio is a bit cheaper when compared to the industry. CUBE is cheaper than 76.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of CUBE to the average of the S&P500 Index (26.34), we can say CUBE is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.50, the valuation of CUBE can be described as rather expensive.
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.
CUBE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.64 | ||
| Fwd PE | 23.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CUBE indicates a somewhat cheap valuation: CUBE is cheaper than 73.33% of the companies listed in the same industry.
83.33% of the companies in the same industry are more expensive than CUBE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.43 | ||
| EV/EBITDA | 16.81 |
4.3 Compensation for Growth
The decent profitability rating of CUBE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.67
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.
Compared to an average industry Dividend Yield of 6.22, CUBE has a dividend in line with its industry peers.
CUBE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| 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.
The dividend of CUBE decreased recently.
Dividend Growth(5Y)9.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CUBE pays out 125.21% of its income as dividend. This is not a sustainable payout ratio.
CUBE's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP125.21%
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
36.88
-0.38 (-1.02%)
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 Cap8.41B
Revenue(TTM)1.11B
Net Income(TTM)374.85M
Analysts74.4
Price Target46.2 (25.27%)
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 | 23.64 | ||
| Fwd PE | 23.5 | ||
| P/S | 7.69 | ||
| P/FCF | 15.43 | ||
| P/OCF | 13.7 | ||
| P/B | 2.99 | ||
| P/tB | 3.02 | ||
| EV/EBITDA | 16.81 |
EPS(TTM)1.56
EY4.23%
EPS(NY)1.57
Fwd EY4.26%
FCF(TTM)2.39
FCFY6.48%
OCF(TTM)2.69
OCFY7.3%
SpS4.8
BVpS12.34
TBVpS12.22
PEG (NY)N/A
PEG (5Y)1.67
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 | 1.34 |
F-Score4
WACC7.21%
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%.