CUBESMART (CUBE) Stock Fundamental Analysis
USA - NYSE:CUBE - US2296631094 - REIT
40.7 USD
+0.46 (+1.14%)
40.7 USD
0 (0%)
Overall CUBE gets a fundamental rating of 4 out of 10. We evaluated CUBE against 29 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
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.
In the past 5 years CUBE always reported a positive cash flow from operatings.
1.2 Ratios
CUBE's Return On Assets of 5.59% is fine compared to the rest of the industry. CUBE outperforms 75.86% of its industry peers.
The Return On Equity of CUBE (13.32%) is better than 75.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.90%, CUBE is in the better half of the industry, outperforming 72.41% 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 4.79%.
The 3 year average ROIC (5.88%) for CUBE is below the current ROIC(5.90%), indicating increased profibility in the last year.
| 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 amongst the best in the industry. CUBE outperforms 82.76% of its industry peers.
CUBE's Profit Margin has improved in the last couple of years.
CUBE has a better Operating Margin (43.37%) than 72.41% of its industry peers.
In the last couple of years the Operating Margin of CUBE has grown nicely.
CUBE's Gross Margin of 69.87% is in line compared to the rest of the industry. CUBE outperforms 44.83% of 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
Based on the Altman-Z score of 1.46, we must say that CUBE is in the distress zone and has some risk of bankruptcy.
CUBE has a Altman-Z score of 1.46. This is in the better half of the industry: CUBE outperforms 72.41% 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 89.66% 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.
CUBE has a Debt to Equity ratio (1.22) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.8
WACC7.33%
2.3 Liquidity
A Current Ratio of 0.10 indicates that CUBE may have some problems paying its short term obligations.
With a Current ratio value of 0.10, CUBE is not doing good in the industry: 93.10% of the companies in the same industry are doing better.
CUBE has a Quick 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 has a Quick ratio of 0.10. This is amonst the worse of the industry: CUBE underperforms 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
CUBE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.87%.
CUBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.17% yearly.
The Revenue has been growing slightly by 3.14% in the past year.
The Revenue has been growing by 10.61% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.87%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%-12.2%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%6.05%
3.2 Future
The Earnings Per Share is expected to decrease by -1.17% 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 6.76% on average per year.
EPS Next Y-8.67%
EPS Next 2Y-3.29%
EPS Next 3Y-0.46%
EPS Next 5Y-1.17%
Revenue Next Year5.64%
Revenue Next 2Y4.53%
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
CUBE is valuated rather expensively with a Price/Earnings ratio of 24.82.
75.86% of the companies in the same industry are more expensive than CUBE, based on the Price/Earnings ratio.
CUBE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
CUBE is valuated quite expensively with a Price/Forward Earnings ratio of 25.30.
Based on the Price/Forward Earnings ratio, CUBE is valued a bit cheaper than 72.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. CUBE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 25.3 |
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 65.52% of the companies listed in the same industry.
82.76% 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 | 17.03 | ||
| EV/EBITDA | 17.92 |
4.3 Compensation for Growth
CUBE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.75
EPS Next 2Y-3.29%
EPS Next 3Y-0.46%
5. Dividend
5.1 Amount
CUBE has a Yearly Dividend Yield of 5.17%, which is a nice return.
CUBE's Dividend Yield is comparable with the industry average which is at 6.05.
Compared to an average S&P500 Dividend Yield of 2.44, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
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
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-3.29%
EPS Next 3Y-0.46%
40.7
+0.46 (+1.14%)
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 Change0%
Ins Owners0.77%
Ins Owner Change0.78%
Market Cap9.28B
Analysts72.8
Price Target46.02 (13.07%)
Short Float %2.36%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
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)-1.67%
PT rev (3m)-2.58%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 25.3 | ||
| P/S | 8.48 | ||
| P/FCF | 17.03 | ||
| P/OCF | 15.12 | ||
| P/B | 3.3 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 17.92 |
EPS(TTM)1.64
EY4.03%
EPS(NY)1.61
Fwd EY3.95%
FCF(TTM)2.39
FCFY5.87%
OCF(TTM)2.69
OCFY6.61%
SpS4.8
BVpS12.34
TBVpS12.22
PEG (NY)N/A
PEG (5Y)1.75
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%
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 | 1.22 | ||
| 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 | 1.46 |
F-Score4
WACC7.33%
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)-7.87%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%-12.2%
EPS Next Y-8.67%
EPS Next 2Y-3.29%
EPS Next 3Y-0.46%
EPS Next 5Y-1.17%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%6.05%
Revenue Next Year5.64%
Revenue Next 2Y4.53%
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 5Y15.47%
FCF growth 1Y1.92%
FCF growth 3Y27.5%
FCF growth 5Y25.34%
OCF growth 1Y1.63%
OCF growth 3Y12%
OCF growth 5Y13.72%