CUBESMART (CUBE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CUBE - US2296631094 - REIT
37.35 USD
+0.42 (+1.14%)
37.35 USD
0 (0%)
Taking everything into account, CUBE scores 5 out of 10 in our fundamental rating. CUBE was compared to 30 industry peers in the Specialized REITs industry. While CUBE has a great profitability rating, there are quite some concerns on its financial health. CUBE has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years CUBE had a positive operating cash flow.
1.2 Ratios
CUBE has a Return On Assets of 5.28%. This is in the better half 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.
The Average Return On Invested Capital over the past 3 years for CUBE is in line with the industry average of 4.77%.
| 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
With a decent Profit Margin value of 32.21%, CUBE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
CUBE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 41.68%, CUBE is doing good in the industry, outperforming 63.33% of the companies in the same industry.
CUBE's Operating Margin has improved in the last couple of years.
The Gross Margin of CUBE (69.45%) is comparable to the rest of the industry.
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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CUBE is destroying value.
CUBE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CUBE has been increased compared to 5 years ago.
Compared to 1 year ago, CUBE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that CUBE is in the distress zone and has some risk of bankruptcy.
CUBE has a Altman-Z score of 1.32. 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 better Debt to FCF ratio (6.17) than 93.33% 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's Debt to Equity ratio of 1.26 is in line compared to the rest of the industry. CUBE outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.81
WACC7.09%
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.
With a Current 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.
A Quick Ratio of 0.37 indicates that CUBE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.37, CUBE is doing worse than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for CUBE have decreased strongly by -11.86% in the last year.
The Earnings Per Share has been growing by 14.17% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.19% in the past year.
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
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-10.62%
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
EPS Next 5Y-1.17%
Revenue Next Year5.83%
Revenue Next 2Y4.58%
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.
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
Based on the Price/Earnings ratio of 23.94, the valuation of CUBE can be described as rather expensive.
Based on the Price/Earnings ratio, CUBE is valued a bit cheaper than 76.67% of the companies in the same industry.
CUBE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 23.80, the valuation of CUBE can be described as rather expensive.
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.
When comparing the Price/Forward Earnings ratio of CUBE to the average of the S&P500 Index (36.12), we can say CUBE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 23.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CUBE is valued a bit cheaper than 73.33% of the companies in the same industry.
CUBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CUBE is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.05 | ||
| EV/EBITDA | 16.72 |
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)1.69
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
5. Dividend
5.1 Amount
CUBE has a Yearly Dividend Yield of 5.84%, which is a nice return.
CUBE's Dividend Yield is a higher than the industry average which is at 6.15.
CUBE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
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
132.52% 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.
DP132.52%
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
37.35
+0.42 (+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 Change2.34%
Ins Owners0.77%
Ins Owner Change-0.59%
Market Cap8.52B
Revenue(TTM)1.11B
Net Income(TTM)356.98M
Analysts74.4
Price Target45.77 (22.54%)
Short Float %2.53%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
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)-0.54%
PT rev (3m)-2.94%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-5.67%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 23.8 | ||
| P/S | 7.69 | ||
| P/FCF | 15.05 | ||
| P/OCF | 13.38 | ||
| P/B | 3.06 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 16.72 |
EPS(TTM)1.56
EY4.18%
EPS(NY)1.57
Fwd EY4.2%
FCF(TTM)2.48
FCFY6.65%
OCF(TTM)2.79
OCFY7.48%
SpS4.86
BVpS12.2
TBVpS12.13
PEG (NY)N/A
PEG (5Y)1.69
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 | 1.32 |
F-Score4
WACC7.09%
ROIC/WACC0.81
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-10.62%
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
EPS Next 5Y-1.17%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%5.24%
Revenue Next Year5.83%
Revenue Next 2Y4.58%
Revenue Next 3Y4.57%
Revenue Next 5Y6.76%
EBIT growth 1Y-5.41%
EBIT growth 3Y18.46%
EBIT growth 5Y15.79%
EBIT Next Year48.55%
EBIT Next 3Y17.01%
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 5 / 10 to CUBE.
What is the valuation status for CUBE stock?
ChartMill assigns a valuation rating of 5 / 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 -10.62% 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%.