CUBESMART (CUBE) Stock Fundamental Analysis
NYSE:CUBE - New York Stock Exchange, Inc. - US2296631094 - REIT - Currency: USD
Overall CUBE gets a fundamental rating of 5 out of 10. We evaluated CUBE against 30 industry peers in the Specialized REITs industry. CUBE scores excellent on profitability, but there are 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.
In the past year CUBE had a positive cash flow from operations.
CUBE had positive earnings in each of the past 5 years.
Each year in the past 5 years CUBE had a positive operating cash flow.
1.2 Ratios
CUBE's Return On Assets of 6.12% is amongst the best of the industry. CUBE outperforms 83.33% of its industry peers.
With a decent Return On Equity value of 13.62%, CUBE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.31%, CUBE is in the better half of the industry, outperforming 76.67% 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 5.35%.
The last Return On Invested Capital (6.31%) for CUBE is above the 3 year average (5.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 13.62% | ||
| ROIC | 6.31% |
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
With an excellent Profit Margin value of 36.69%, CUBE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of CUBE has grown nicely.
CUBE's Operating Margin of 45.31% is fine compared to the rest of the industry. CUBE outperforms 73.33% of its industry peers.
CUBE's Operating Margin has improved in the last couple of years.
CUBE has a Gross Margin (70.20%) 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 | 45.31% | ||
| PM (TTM) | 36.69% | ||
| GM | 70.2% |
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
CUBE has a better debt/assets ratio than last year.
2.2 Solvency
CUBE has an Altman-Z score of 1.65. This is a bad value and indicates that CUBE is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.65, CUBE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of CUBE is 5.60, which is a neutral value as it means it would take CUBE, 5.60 years of fcf income to pay off all of its debts.
CUBE has a better Debt to FCF ratio (5.60) than 90.00% of its industry peers.
CUBE has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CUBE (1.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.86
WACC7.34%
2.3 Liquidity
CUBE has a Current Ratio of 0.28. This is a bad value and indicates that CUBE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.28, CUBE is doing worse than 83.33% of the companies in the same industry.
A Quick Ratio of 0.28 indicates that CUBE may have some problems paying its short term obligations.
With a Quick ratio value of 0.28, CUBE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
CUBE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.78%.
The Earnings Per Share has been growing by 14.17% on average over the past years. This is quite good.
CUBE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.51%.
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)7.78%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%52.38%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%4.45%
3.2 Future
Based on estimates for the next years, CUBE will show a small growth in Earnings Per Share. The EPS will grow by 2.84% on average per year.
The Revenue is expected to grow by 7.60% on average over the next years.
EPS Next Y-5.03%
EPS Next 2Y-1.77%
EPS Next 3Y0.91%
EPS Next 5Y2.84%
Revenue Next Year3.35%
Revenue Next 2Y3.52%
Revenue Next 3Y4.13%
Revenue Next 5Y7.6%
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
CUBE is valuated rather expensively with a Price/Earnings ratio of 22.11.
Compared to the rest of the industry, the Price/Earnings ratio of CUBE indicates a rather cheap valuation: CUBE is cheaper than 83.33% of the companies listed in the same industry.
CUBE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.75.
With a Price/Forward Earnings ratio of 25.84, CUBE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CUBE indicates a somewhat cheap valuation: CUBE is cheaper than 73.33% 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 (20.49), we can say CUBE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 25.84 |
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 a bit cheaper when compared to the industry. CUBE is cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.93 | ||
| EV/EBITDA | 17.77 |
4.3 Compensation for Growth
CUBE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y-1.77%
EPS Next 3Y0.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.08%, CUBE is a good candidate for dividend investing.
CUBE's Dividend Yield is comparable with the industry average which is at 5.76.
Compared to an average S&P500 Dividend Yield of 2.44, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
5.2 History
On average, the dividend of CUBE grows each year by 9.75%, which is quite nice.
CUBE has been paying a dividend for at least 10 years, so it has a reliable track record.
CUBE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.75%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
118.05% of the earnings are spent on dividend by CUBE. 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.
DP118.05%
EPS Next 2Y-1.77%
EPS Next 3Y0.91%
NYSE:CUBE (5/2/2025, 3:36:58 PM)
42.89
+1.94 (+4.74%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.86%
Inst Owner Change-0.05%
Ins Owners0.77%
Ins Owner Change-0.17%
Market Cap9.77B
Analysts69.17
Price Target46.17 (7.65%)
Short Float %2.02%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
Yearly Dividend2.04
Dividend Growth(5Y)9.75%
DP118.05%
Div Incr Years13
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.32%
Min EPS beat(2)-3.33%
Max EPS beat(2)-3.3%
EPS beat(4)0
Avg EPS beat(4)-3.47%
Min EPS beat(4)-4.3%
Max EPS beat(4)-2.95%
EPS beat(8)2
Avg EPS beat(8)2.82%
EPS beat(12)5
Avg EPS beat(12)7.18%
EPS beat(16)8
Avg EPS beat(16)9.77%
Revenue beat(2)1
Avg Revenue beat(2)-0.68%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)0.11%
Revenue beat(4)3
Avg Revenue beat(4)1.36%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)4.86%
Revenue beat(8)4
Avg Revenue beat(8)-0.91%
Revenue beat(12)4
Avg Revenue beat(12)-1.18%
Revenue beat(16)7
Avg Revenue beat(16)-0.72%
PT rev (1m)-6%
PT rev (3m)-11.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.33%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 25.84 | ||
| P/S | 9.17 | ||
| P/FCF | 17.93 | ||
| P/OCF | 15.49 | ||
| P/B | 3.4 | ||
| P/tB | 3.42 | ||
| EV/EBITDA | 17.77 |
EPS(TTM)1.94
EY4.52%
EPS(NY)1.66
Fwd EY3.87%
FCF(TTM)2.39
FCFY5.58%
OCF(TTM)2.77
OCFY6.46%
SpS4.68
BVpS12.6
TBVpS12.56
PEG (NY)N/A
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 13.62% | ||
| ROCE | 7.99% | ||
| ROIC | 6.31% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 6.48% | ||
| OM | 45.31% | ||
| PM (TTM) | 36.69% | ||
| GM | 70.2% | ||
| FCFM | 51.12% |
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 Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 5.6 | ||
| Debt/EBITDA | 4.4 | ||
| Cap/Depr | 40.99% | ||
| Cap/Sales | 8.06% | ||
| Interest Coverage | 5.22 | ||
| Cash Conversion | 91.08% | ||
| Profit Quality | 139.35% | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 1.65 |
F-Score4
WACC7.34%
ROIC/WACC0.86
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)7.78%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%52.38%
EPS Next Y-5.03%
EPS Next 2Y-1.77%
EPS Next 3Y0.91%
EPS Next 5Y2.84%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%4.45%
Revenue Next Year3.35%
Revenue Next 2Y3.52%
Revenue Next 3Y4.13%
Revenue Next 5Y7.6%
EBIT growth 1Y-2.85%
EBIT growth 3Y18.46%
EBIT growth 5Y15.79%
EBIT Next Year47.27%
EBIT Next 3Y17.36%
EBIT Next 5Y14.66%
FCF growth 1Y-0.68%
FCF growth 3Y27.5%
FCF growth 5Y25.34%
OCF growth 1Y3.26%
OCF growth 3Y12%
OCF growth 5Y13.72%