CUBESMART (CUBE)
US2296631094 - REIT
We assign a fundamental rating of 5 out of 10 to CUBE. CUBE was compared to 28 industry peers in the Specialized REITs industry. While CUBE belongs to the best of the industry regarding profitability, there are concerns on its financial health. CUBE is not valued too expensively and it also shows a decent growth rate. CUBE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CUBE was profitable.
CUBE had a positive operating cash flow in the past year.
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 6.60%, CUBE belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.68%, CUBE is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.65%, CUBE belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CUBE is in line with the industry average of 5.04%.
The last Return On Invested Capital (6.65%) for CUBE is above the 3 year average (4.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 14.68% | ||
| ROIC | 6.65% |
ROA(3y)4.87%
ROA(5y)4.46%
ROE(3y)10.92%
ROE(5y)10.24%
ROIC(3y)4.98%
ROIC(5y)4.84%
1.3 Margins
CUBE has a Profit Margin of 39.11%. This is amongst the best in the industry. CUBE outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of CUBE has grown nicely.
The Operating Margin of CUBE (47.35%) is better than 71.43% of its industry peers.
CUBE's Operating Margin has improved in the last couple of years.
CUBE has a Gross Margin (71.94%) which is in line with its industry peers.
CUBE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.35% | ||
| PM (TTM) | 39.11% | ||
| GM | 71.94% |
OM growth 3Y7.69%
OM growth 5Y5.17%
PM growth 3Y17.06%
PM growth 5Y7.36%
GM growth 3Y3.46%
GM growth 5Y2.06%
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.
The number of shares outstanding for CUBE remains at a similar level compared to 1 year ago.
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
Based on the Altman-Z score of 1.74, we must say that CUBE is in the distress zone and has some risk of bankruptcy.
CUBE has a Altman-Z score of 1.74. This is in the better half of the industry: CUBE outperforms 78.57% of its industry peers.
CUBE has a debt to FCF ratio of 5.44. This is a neutral value as CUBE would need 5.44 years to pay back of all of its debts.
CUBE has a better Debt to FCF ratio (5.44) than 89.29% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that CUBE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.07, CUBE is in line with its industry, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.8
WACC8.29%
2.3 Liquidity
CUBE has a Current 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.
CUBE's Current ratio of 0.09 is on the low side compared to the rest of the industry. CUBE is outperformed by 92.86% of its industry peers.
A Quick Ratio of 0.09 indicates that CUBE may have some problems paying its short term obligations.
CUBE's Quick ratio of 0.09 is on the low side compared to the rest of the industry. CUBE is outperformed by 92.86% 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 impressive 40.31% over the past year.
Measured over the past years, CUBE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.87% on average per year.
CUBE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.02%.
CUBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.93% yearly.
EPS 1Y (TTM)40.31%
EPS 3Y28.15%
EPS 5Y16.87%
EPS growth Q2Q38.89%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y15.64%
Revenue growth 5Y11.93%
Revenue growth Q2Q1.58%
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 2.63% on average per year.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y-1.86%
EPS Next 2Y1.03%
EPS Next 3Y1.99%
EPS Next 5Y2.63%
Revenue Next Year1.94%
Revenue Next 2Y3.14%
Revenue Next 3Y4.24%
Revenue Next 5Y7.45%
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 23.34, which indicates a rather expensive current valuation of CUBE.
Based on the Price/Earnings ratio, CUBE is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.95. CUBE is around the same levels.
CUBE is valuated rather expensively with a Price/Forward Earnings ratio of 23.78.
71.43% of the companies in the same industry are more expensive than CUBE, based on the Price/Forward Earnings ratio.
CUBE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 23.78 |
4.2 Price Multiples
CUBE's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CUBE indicates a rather cheap valuation: CUBE is cheaper than 82.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.4 | ||
| EV/EBITDA | 17.8 |
4.3 Compensation for Growth
The excellent profitability rating of CUBE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y1.03%
EPS Next 3Y1.99%
5. Dividend
5.1 Amount
CUBE has a Yearly Dividend Yield of 4.87%, which is a nice return.
Compared to an average industry Dividend Yield of 5.04, CUBE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
5.2 History
On average, the dividend of CUBE grows each year by 10.42%, which is quite nice.
CUBE has paid a dividend for at least 10 years, which is a reliable track record.
CUBE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.42%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
107.64% 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.
DP107.64%
EPS Next 2Y1.03%
EPS Next 3Y1.99%
CUBESMART
NYSE:CUBE (4/23/2024, 12:45:08 PM)
42.245
+0.09 (+0.2%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 23.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 14.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 47.35% | ||
| PM (TTM) | 39.11% | ||
| GM | 71.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)40.31%
EPS 3Y28.15%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.02%
Revenue growth 3Y15.64%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y