CUBESMART (CUBE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CUBE - US2296631094 - REIT
38.24 USD
-0.41 (-1.06%)
38.24 USD
0 (0%)
Overall CUBE gets a fundamental rating of 4 out of 10. We evaluated CUBE against 30 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 valued correctly, 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.
- Each year in the past 5 years CUBE has 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 5.28% is fine compared to the rest of the industry. CUBE outperforms 76.67% of its industry peers.
- CUBE's Return On Equity of 12.83% is fine compared to the rest of the industry. CUBE outperforms 76.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.71%, CUBE is in the better half of 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 4.86%.
| 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 has a better Profit Margin (32.21%) than 80.00% of its industry peers.
- CUBE's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 41.68%, CUBE is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of CUBE has grown nicely.
- CUBE has a Gross Margin (69.45%) 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 | 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.
- The number of shares outstanding for CUBE has been increased compared to 1 year ago.
- 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 1.36. 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 (1.36) than 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.
- With a Debt to Equity ratio value of 1.26, CUBE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.76
WACC7.55%
2.3 Liquidity
- CUBE has a Current 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.
- The Current ratio of CUBE (0.37) is worse than 73.33% of its industry peers.
- A Quick Ratio of 0.37 indicates that CUBE may have some problems paying its short term obligations.
- CUBE has a worse Quick ratio (0.37) than 73.33% of its industry peers.
| 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%.
- 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 4.19%.
- 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)-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
- Based on estimates for the next years, CUBE will show a decrease in Earnings Per Share. The EPS will decrease by -0.92% on average per year.
- The Revenue is expected to grow by 6.79% on average over the next years.
EPS Next Y-12.43%
EPS Next 2Y-6.84%
EPS Next 3Y-3.26%
EPS Next 5Y-0.92%
Revenue Next Year4.88%
Revenue Next 2Y3.8%
Revenue Next 3Y3.78%
Revenue Next 5Y6.79%
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
- CUBE is valuated rather expensively with a Price/Earnings ratio of 24.51.
- Based on the Price/Earnings ratio, CUBE is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
- CUBE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 25.62, 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 66.67% 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 (24.26), we can say CUBE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.51 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
- 73.33% of the companies in the same industry are more expensive than CUBE, based on the Enterprise Value to EBITDA ratio.
- 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 | 15.4 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
- The decent profitability rating of CUBE may justify a higher PE ratio.
- CUBE's earnings are expected to decrease with -3.26% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.73
EPS Next 2Y-6.84%
EPS Next 3Y-3.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.42%, CUBE is a good candidate for dividend investing.
- CUBE's Dividend Yield is comparable with the industry average which is at 5.65.
- Compared to an average S&P500 Dividend Yield of 1.82, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
5.2 History
- On average, the dividend of CUBE grows each year by 9.75%, which is quite nice.
- CUBE has paid a dividend for at least 10 years, which is 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 132.52% of its income as dividend. 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-6.84%
EPS Next 3Y-3.26%
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 of CUBESMART (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 PE and PB ratios for CUBE stock?
The Price/Earnings (PE) ratio for CUBESMART (CUBE) is 24.51 and the Price/Book (PB) ratio is 3.13.
What is the financial health of CUBESMART (CUBE) stock?
The financial health rating of CUBESMART (CUBE) is 3 / 10.