CUBESMART (CUBE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CUBE - US2296631094 - REIT
35.84 USD
+0.48 (+1.36%)
35.5 USD
-0.34 (-0.95%)
Overall CUBE gets a fundamental rating of 4 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 valuation in line with the averages, 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
Looking at the Return On Assets, with a value of 5.28%, CUBE is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
The Return On Equity of CUBE (12.83%) is better than 76.67% of its industry peers.
With a decent Return On Invested Capital value of 5.71%, CUBE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CUBE had an Average Return On Invested Capital over the past 3 years of 5.88%. This is in line with the industry average of 4.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.28% | ||
| ROE | 12.83% | ||
| ROIC | 5.71% |
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's Profit Margin of 32.21% is fine compared to the rest 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 better Operating Margin (41.68%) than 63.33% of its industry peers.
CUBE's Operating Margin has improved in the last couple of years.
CUBE's Gross Margin of 69.45% is in line compared to the rest of the industry. CUBE outperforms 46.67% of its industry peers.
CUBE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.68% | ||
| PM (TTM) | 32.21% | ||
| GM | 69.45% |
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
Compared to 5 years ago, CUBE has more shares outstanding
The debt/assets ratio for CUBE has been reduced compared to a year ago.
2.2 Solvency
CUBE has an Altman-Z score of 1.27. This is a bad value and indicates that CUBE is not financially healthy and even has some risk of bankruptcy.
CUBE has a Altman-Z score of 1.27. This is in the better half of the industry: CUBE outperforms 70.00% of its industry peers.
CUBE has a debt to FCF ratio of 6.17. This is a slightly negative value and a sign of low solvency as CUBE would need 6.17 years to pay back of all of its debts.
CUBE has a Debt to FCF ratio of 6.17. This is amongst the best in the industry. CUBE outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that CUBE has dependencies on debt financing.
CUBE has a Debt to Equity ratio (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.79
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.37 indicates that CUBE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.37, CUBE is doing worse than 76.67% of the companies in the same industry.
CUBE has a Quick Ratio of 0.37. This is a bad value and indicates that CUBE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.37, CUBE is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
CUBE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.86%.
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%.
The Revenue has been growing by 10.61% on average over the past years. This is quite good.
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.
CUBE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.76% yearly.
EPS Next Y-11.3%
EPS Next 2Y-5.68%
EPS Next 3Y-2.24%
EPS Next 5Y-1.17%
Revenue Next Year5.74%
Revenue Next 2Y4.44%
Revenue Next 3Y4.25%
Revenue Next 5Y6.76%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.97, which indicates a rather expensive current valuation of CUBE.
Compared to the rest of the industry, the Price/Earnings ratio of CUBE indicates a somewhat cheap valuation: CUBE is cheaper than 80.00% of the companies listed in the same industry.
CUBE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.42, which indicates a rather expensive current valuation of CUBE.
CUBE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CUBE is cheaper than 70.00% of the companies in the same industry.
CUBE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 23.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CUBE is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CUBE indicates a rather cheap valuation: CUBE is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.44 | ||
| EV/EBITDA | 16.24 |
4.3 Compensation for Growth
CUBE has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CUBE's earnings are expected to decrease with -2.24% in the coming years.
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2Y-5.68%
EPS Next 3Y-2.24%
5. Dividend
5.1 Amount
CUBE has a Yearly Dividend Yield of 5.90%, which is a nice return.
Compared to an average industry Dividend Yield of 5.78, CUBE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.88, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.9% |
5.2 History
The dividend of CUBE is nicely growing with an annual growth rate of 9.75%!
CUBE has paid a dividend for at least 10 years, which is 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
132.52% of the earnings are spent on dividend by CUBE. 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.
DP132.52%
EPS Next 2Y-5.68%
EPS Next 3Y-2.24%
35.84
+0.48 (+1.36%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.27%
Inst Owner Change2.35%
Ins Owners0.77%
Ins Owner Change3.28%
Market Cap8.17B
Revenue(TTM)1.11B
Net Income(TTM)356.98M
Analysts73.6
Price Target44.16 (23.21%)
Short Float %2.54%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.9% |
Yearly Dividend2.04
Dividend Growth(5Y)9.75%
DP132.52%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.87%
Min EPS beat(2)-7.12%
Max EPS beat(2)-4.61%
EPS beat(4)0
Avg EPS beat(4)-3.79%
Min EPS beat(4)-7.12%
Max EPS beat(4)-0.13%
EPS beat(8)1
Avg EPS beat(8)-2.15%
EPS beat(12)3
Avg EPS beat(12)2.5%
EPS beat(16)6
Avg EPS beat(16)5.61%
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-0.77%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)1.08%
Revenue beat(8)5
Avg Revenue beat(8)-0.18%
Revenue beat(12)6
Avg Revenue beat(12)-0.64%
Revenue beat(16)6
Avg Revenue beat(16)-1.04%
PT rev (1m)-4.42%
PT rev (3m)-4.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.66%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 23.42 | ||
| P/S | 7.38 | ||
| P/FCF | 14.44 | ||
| P/OCF | 12.84 | ||
| P/B | 2.94 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 16.24 |
EPS(TTM)1.56
EY4.35%
EPS(NY)1.53
Fwd EY4.27%
FCF(TTM)2.48
FCFY6.93%
OCF(TTM)2.79
OCFY7.79%
SpS4.86
BVpS12.2
TBVpS12.13
PEG (NY)N/A
PEG (5Y)1.62
Graham Number20.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.28% | ||
| ROE | 12.83% | ||
| ROCE | 7.23% | ||
| ROIC | 5.71% | ||
| ROICexc | 5.81% | ||
| ROICexgc | 5.89% | ||
| OM | 41.68% | ||
| PM (TTM) | 32.21% | ||
| GM | 69.45% | ||
| FCFM | 51.08% |
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 | 1.26 | ||
| Debt/FCF | 6.17 | ||
| Debt/EBITDA | 4.91 | ||
| Cap/Depr | 28.26% | ||
| Cap/Sales | 6.37% | ||
| Interest Coverage | 4.4 | ||
| Cash Conversion | 89.46% | ||
| Profit Quality | 158.58% | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.27 |
F-Score4
WACC7.25%
ROIC/WACC0.79
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-11.3%
EPS Next 2Y-5.68%
EPS Next 3Y-2.24%
EPS Next 5Y-1.17%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%5.24%
Revenue Next Year5.74%
Revenue Next 2Y4.44%
Revenue Next 3Y4.25%
Revenue Next 5Y6.76%
EBIT growth 1Y-5.41%
EBIT growth 3Y18.46%
EBIT growth 5Y15.79%
EBIT Next Year48.66%
EBIT Next 3Y16.96%
EBIT Next 5Y16.68%
FCF growth 1Y0.23%
FCF growth 3Y27.5%
FCF growth 5Y25.34%
OCF growth 1Y4.35%
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 4 / 10 to CUBE.
What is the valuation status for CUBE stock?
ChartMill assigns a valuation rating of 4 / 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 -11.3% 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 132.52%.