CUBESMART (CUBE) Stock Fundamental Analysis
USA - NYSE:CUBE - US2296631094 - REIT
41.22 USD
+0.22 (+0.54%)
41.22 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. CUBE has an excellent profitability rating, 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
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.
CUBE had a positive operating cash flow in each of the past 5 years.
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.
CUBE has a Return On Equity of 13.32%. This is in the better half of the industry: CUBE outperforms 75.86% of its industry peers.
The Return On Invested Capital of CUBE (5.90%) is better than 72.41% of its industry peers.
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 last Return On Invested Capital (5.90%) for CUBE is above the 3 year average (5.88%), which is a sign of increasing profitability.
| 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's Profit Margin of 34.27% is amongst the best of the industry. CUBE outperforms 82.76% of its industry peers.
In the last couple of years the Profit Margin of CUBE has grown nicely.
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.
Looking at the Gross Margin, with a value of 69.87%, CUBE is in line with its industry, outperforming 44.83% of the companies in the same industry.
CUBE's Gross Margin has been stable in the last couple of years.
| 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
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
Compared to 1 year ago, CUBE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that CUBE is in the distress zone and has some risk of bankruptcy.
CUBE has a Altman-Z score of 1.48. 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.
CUBE's Debt to FCF ratio of 6.28 is amongst the best of the industry. CUBE outperforms 89.66% of its industry peers.
CUBE has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
CUBE has a Debt to Equity ratio of 1.22. This is comparable to the rest of the industry: CUBE outperforms 48.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.81
WACC7.28%
2.3 Liquidity
A Current Ratio of 0.10 indicates that CUBE may have some problems paying its short term obligations.
CUBE has a Current ratio of 0.10. This is amonst the worse of the industry: CUBE underperforms 93.10% of its industry peers.
A Quick Ratio of 0.10 indicates that CUBE may have some problems paying its short term obligations.
With a Quick 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.
| 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.
CUBE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.14%.
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)-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
Based on estimates for the next years, CUBE will show a decrease in Earnings Per Share. The EPS will decrease by -1.17% on average per year.
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-8.59%
EPS Next 2Y-3.29%
EPS Next 3Y0.07%
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
A Price/Earnings ratio of 25.13 indicates a quite expensive 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 79.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CUBE to the average of the S&P500 Index (27.20), we can say CUBE is valued inline with the index average.
The Price/Forward Earnings ratio is 25.62, which means the current valuation is very expensive for CUBE.
68.97% of the companies in the same industry are more expensive than CUBE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, CUBE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CUBE is valued a bit cheaper than 65.52% of the companies in the same industry.
CUBE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CUBE is cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.25 | ||
| EV/EBITDA | 18.08 |
4.3 Compensation for Growth
The decent profitability rating of CUBE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y-3.29%
EPS Next 3Y0.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.00%, CUBE is a good candidate for dividend investing.
CUBE's Dividend Yield is comparable with the industry average which is at 5.99.
Compared to an average S&P500 Dividend Yield of 2.38, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
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.
The dividend of CUBE decreased recently.
Dividend Growth(5Y)9.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CUBE pays out 125.21% 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.
DP125.21%
EPS Next 2Y-3.29%
EPS Next 3Y0.07%
41.22
+0.22 (+0.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.38%
Inst Owner Change-1.87%
Ins Owners0.77%
Ins Owner Change0.78%
Market Cap9.40B
Analysts72.8
Price Target46.44 (12.66%)
Short Float %2.28%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
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)-1.53%
PT rev (3m)-1.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 25.62 | ||
| P/S | 8.59 | ||
| P/FCF | 17.25 | ||
| P/OCF | 15.31 | ||
| P/B | 3.34 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 18.08 |
EPS(TTM)1.64
EY3.98%
EPS(NY)1.61
Fwd EY3.9%
FCF(TTM)2.39
FCFY5.8%
OCF(TTM)2.69
OCFY6.53%
SpS4.8
BVpS12.34
TBVpS12.22
PEG (NY)N/A
PEG (5Y)1.77
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 | 1.48 |
F-Score4
WACC7.28%
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)-7.87%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%-12.2%
EPS Next Y-8.59%
EPS Next 2Y-3.29%
EPS Next 3Y0.07%
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 Year48.14%
EBIT Next 3Y17.13%
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%