CUBESMART (CUBE) Stock Fundamental Analysis
USA - NYSE:CUBE - US2296631094 - REIT
35.63 USD
-0.23 (-0.64%)
35.63 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CUBE. 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.
CUBE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CUBE has a better Return On Assets (5.28%) than 76.67% of its industry peers.
CUBE has a Return On Equity of 12.83%. This is in the better half of the industry: CUBE outperforms 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.
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
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.
CUBE has a Operating Margin of 41.68%. This is in the better half of the industry: CUBE outperforms 63.33% of its industry peers.
CUBE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 69.45%, CUBE is in line with its industry, outperforming 46.67% 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 | 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
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.
Compared to 1 year ago, CUBE has an improved debt to assets ratio.
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.
With a decent Altman-Z score value of 1.27, CUBE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of CUBE is 6.17, which is on the high side as it means it would take CUBE, 6.17 years of fcf income to pay off all of its debts.
CUBE's Debt to FCF ratio of 6.17 is amongst the best of the industry. CUBE outperforms 93.33% of its industry peers.
CUBE has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
CUBE has a Debt to Equity ratio (1.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.8
WACC7.16%
2.3 Liquidity
A Current Ratio of 0.37 indicates that CUBE may have some problems paying its short term obligations.
The Current ratio of CUBE (0.37) is worse than 76.67% of its industry peers.
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.
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 4.19%.
Measured over the past years, CUBE shows a quite strong growth in Revenue. The Revenue has been growing by 10.61% on average per year.
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.
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 22.84.
Based on the Price/Earnings ratio, CUBE is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
CUBE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.70, CUBE is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CUBE is valued a bit cheaper than 70.00% of the companies in the same industry.
CUBE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 22.7 |
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.
Based on the Price/Free Cash Flow ratio, CUBE is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.35 | ||
| EV/EBITDA | 16.25 |
4.3 Compensation for Growth
The decent profitability rating of CUBE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.61
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.68%, CUBE is a good candidate for dividend investing.
CUBE's Dividend Yield is comparable with the industry average which is at 6.26.
Compared to an average S&P500 Dividend Yield of 2.44, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
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%
35.63
-0.23 (-0.64%)
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 Change1.79%
Ins Owners0.77%
Ins Owner Change0.9%
Market Cap8.13B
Revenue(TTM)1.11B
Net Income(TTM)356.98M
Analysts74.4
Price Target46.2 (29.67%)
Short Float %2.53%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
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)0.39%
PT rev (3m)-2.04%
EPS NQ rev (1m)-2.91%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)-2.13%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 22.7 | ||
| P/S | 7.33 | ||
| P/FCF | 14.35 | ||
| P/OCF | 12.76 | ||
| P/B | 2.92 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 16.25 |
EPS(TTM)1.56
EY4.38%
EPS(NY)1.57
Fwd EY4.4%
FCF(TTM)2.48
FCFY6.97%
OCF(TTM)2.79
OCFY7.84%
SpS4.86
BVpS12.2
TBVpS12.13
PEG (NY)N/A
PEG (5Y)1.61
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
WACC7.16%
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)-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 5Y16.94%
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%.