CUBESMART (CUBE) Stock Fundamental Analysis
NYSE:CUBE - New York Stock Exchange, Inc. - US2296631094 - REIT - Currency: USD
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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CUBE was profitable.
CUBE had a positive operating cash flow in the past year.
In the past 5 years CUBE has always been profitable.
Each year in the past 5 years CUBE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CUBE (5.72%) is better than 76.67% of its industry peers.
CUBE's Return On Equity of 13.57% is fine compared to the rest of the industry. CUBE outperforms 76.67% of its industry peers.
The Return On Invested Capital of CUBE (5.93%) is better than 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CUBE is in line with the industry average of 5.19%.
The last Return On Invested Capital (5.93%) for CUBE is above the 3 year average (5.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 13.57% | ||
| ROIC | 5.93% |
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 (35.80%) is better than 83.33% of its industry peers.
In the last couple of years the Profit Margin of CUBE has grown nicely.
The Operating Margin of CUBE (44.53%) is better than 70.00% of its industry peers.
In the last couple of years the Operating Margin of CUBE has grown nicely.
CUBE has a Gross Margin (69.97%) which is in line with its industry peers.
CUBE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.53% | ||
| PM (TTM) | 35.8% | ||
| GM | 69.97% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CUBE 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.
CUBE has a better debt/assets ratio than last year.
2.2 Solvency
CUBE has an Altman-Z score of 1.41. 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 (1.41) than 66.67% of its industry peers.
The Debt to FCF ratio of CUBE is 6.12, which is on the high side as it means it would take CUBE, 6.12 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CUBE (6.12) is better than 90.00% of its industry peers.
CUBE has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
CUBE's Debt to Equity ratio of 1.21 is in line compared to the rest of the industry. CUBE outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 6.12 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.8
WACC7.44%
2.3 Liquidity
A Current Ratio of 0.09 indicates that CUBE may have some problems paying its short term obligations.
CUBE's Current ratio of 0.09 is on the low side compared to the rest of the industry. CUBE is outperformed by 93.33% of its industry peers.
CUBE has a Quick Ratio of 0.09. 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 Quick ratio of CUBE (0.09) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.43% over the past year.
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 1.51%.
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)8.43%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%58.54%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%6.04%
3.2 Future
The Earnings Per Share is expected to grow by 1.65% on average over the next years.
Based on estimates for the next years, CUBE will show a small growth in Revenue. The Revenue will grow by 7.46% on average per year.
EPS Next Y-8.59%
EPS Next 2Y-3.42%
EPS Next 3Y-0.12%
EPS Next 5Y1.65%
Revenue Next Year5.07%
Revenue Next 2Y4.35%
Revenue Next 3Y4.33%
Revenue Next 5Y7.46%
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.
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
The Price/Earnings ratio is 20.16, which indicates a rather expensive current valuation of CUBE.
86.67% of the companies in the same industry are more expensive than CUBE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.25. CUBE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 24.25, the valuation of CUBE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CUBE is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CUBE to the average of the S&P500 Index (36.80), we can say CUBE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 24.25 |
4.2 Price Multiples
CUBE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CUBE is cheaper than 63.33% of the companies in the same industry.
CUBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CUBE is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.79 | ||
| EV/EBITDA | 17.6 |
4.3 Compensation for Growth
The decent profitability rating of CUBE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.42
EPS Next 2Y-3.42%
EPS Next 3Y-0.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.06%, CUBE is a good candidate for dividend investing.
CUBE's Dividend Yield is comparable with the industry average which is at 5.68.
CUBE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
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
CUBE pays out 120.66% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CUBE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP120.66%
EPS Next 2Y-3.42%
EPS Next 3Y-0.12%
38.91
-2.21 (-5.37%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.34%
Inst Owner Change0.13%
Ins Owners0.77%
Ins Owner Change-4.62%
Market Cap8.87B
Analysts73.33
Price Target47.49 (22.05%)
Short Float %1.85%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
Yearly Dividend2.04
Dividend Growth(5Y)9.75%
DP120.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.72%
Min EPS beat(2)-3.3%
Max EPS beat(2)-0.13%
EPS beat(4)0
Avg EPS beat(4)-2.77%
Min EPS beat(4)-4.3%
Max EPS beat(4)-0.13%
EPS beat(8)1
Avg EPS beat(8)-0.82%
EPS beat(12)5
Avg EPS beat(12)9.81%
EPS beat(16)8
Avg EPS beat(16)10.61%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)1.08%
Revenue beat(4)3
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)1.93%
Revenue beat(8)4
Avg Revenue beat(8)-1.31%
Revenue beat(12)5
Avg Revenue beat(12)-0.87%
Revenue beat(16)7
Avg Revenue beat(16)-0.88%
PT rev (1m)0.54%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.07%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-3.75%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 24.25 | ||
| P/S | 8.23 | ||
| P/FCF | 15.79 | ||
| P/OCF | 14.14 | ||
| P/B | 3.12 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 17.6 |
EPS(TTM)1.93
EY4.96%
EPS(NY)1.6
Fwd EY4.12%
FCF(TTM)2.46
FCFY6.33%
OCF(TTM)2.75
OCFY7.07%
SpS4.73
BVpS12.48
TBVpS12.32
PEG (NY)N/A
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 13.57% | ||
| ROCE | 7.5% | ||
| ROIC | 5.93% | ||
| ROICexc | 5.94% | ||
| ROICexgc | 6.04% | ||
| OM | 44.53% | ||
| PM (TTM) | 35.8% | ||
| GM | 69.97% | ||
| FCFM | 52.11% |
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%
ROICexcg growth 3Y19.62%
ROICexcg 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 | 1.21 | ||
| Debt/FCF | 6.12 | ||
| Debt/EBITDA | 4.92 | ||
| Cap/Depr | 30.01% | ||
| Cap/Sales | 6.08% | ||
| Interest Coverage | 5.14 | ||
| Cash Conversion | 89.82% | ||
| Profit Quality | 145.57% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | 1.41 |
F-Score4
WACC7.44%
ROIC/WACC0.8
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)8.43%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%58.54%
EPS Next Y-8.59%
EPS Next 2Y-3.42%
EPS Next 3Y-0.12%
EPS Next 5Y1.65%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%6.04%
Revenue Next Year5.07%
Revenue Next 2Y4.35%
Revenue Next 3Y4.33%
Revenue Next 5Y7.46%
EBIT growth 1Y-3.02%
EBIT growth 3Y18.46%
EBIT growth 5Y15.79%
EBIT Next Year46.99%
EBIT Next 3Y16.8%
EBIT Next 5Y15.3%
FCF growth 1Y11.8%
FCF growth 3Y27.5%
FCF growth 5Y25.34%
OCF growth 1Y5.19%
OCF growth 3Y12%
OCF growth 5Y13.72%