CUBESMART (CUBE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CUBE - US2296631094 - REIT
36.63 USD
-0.18 (-0.49%)
36.6 USD
-0.03 (-0.08%)
CUBE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. CUBE scores excellent on profitability, but 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.
CUBE had a positive operating cash flow in the past year.
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
CUBE has a better Return On Assets (5.28%) than 76.67% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital 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.
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.
In the last couple of years the Operating Margin of CUBE has grown nicely.
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
CUBE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CUBE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that CUBE is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.30, 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.
The Debt to FCF ratio of CUBE (6.17) is better than 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 | 1.3 |
ROIC/WACC0.79
WACC7.23%
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 76.67% of its industry peers.
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.
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
CUBE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.86%.
CUBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.17% yearly.
The Revenue has been growing slightly by 4.19% in the past year.
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
CUBE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.17% yearly.
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
CUBE is valuated rather expensively with a Price/Earnings ratio of 23.48.
76.67% of the companies in the same industry are more expensive than CUBE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CUBE to the average of the S&P500 Index (26.46), we can say CUBE is valued inline with the index average.
CUBE is valuated rather expensively with a Price/Forward Earnings ratio of 23.34.
Based on the Price/Forward Earnings ratio, CUBE is valued a bit cheaper than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, CUBE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 23.34 |
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.
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 | 14.76 | ||
| EV/EBITDA | 16.55 |
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)1.66
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.65%, CUBE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.05, CUBE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
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
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%
36.63
-0.18 (-0.49%)
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 Change2.34%
Ins Owners0.77%
Ins Owner Change-0.59%
Market Cap8.35B
Revenue(TTM)1.11B
Net Income(TTM)356.98M
Analysts73.6
Price Target44.7 (22.03%)
Short Float %2.37%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
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)-2.2%
EPS NQ rev (1m)-0.37%
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)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 23.34 | ||
| P/S | 7.54 | ||
| P/FCF | 14.76 | ||
| P/OCF | 13.12 | ||
| P/B | 3 | ||
| P/tB | 3.02 | ||
| EV/EBITDA | 16.55 |
EPS(TTM)1.56
EY4.26%
EPS(NY)1.57
Fwd EY4.28%
FCF(TTM)2.48
FCFY6.78%
OCF(TTM)2.79
OCFY7.62%
SpS4.86
BVpS12.2
TBVpS12.13
PEG (NY)N/A
PEG (5Y)1.66
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 | 1.3 |
F-Score4
WACC7.23%
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-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%.