CUBESMART (CUBE)
US2296631094 - REIT
CUBE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Specialized REITs industry. CUBE scores excellent on profitability, but there are some minor concerns on its financial health. CUBE has a decent growth rate and is not valued too expensively.
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.
CUBE had positive earnings in each of the past 5 years.
Each year in the past 5 years CUBE had a positive operating cash flow.
1.2 Ratios
CUBE has a Return On Assets of 6.49%. This is amongst the best in the industry. CUBE outperforms 89.29% of its industry peers.
CUBE's Return On Equity of 14.43% is fine compared to the rest of the industry. CUBE outperforms 75.00% of its industry peers.
With a decent Return On Invested Capital value of 6.59%, CUBE is doing good in the industry, outperforming 78.57% 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 5.21%.
The 3 year average ROIC (5.00%) for CUBE is below the current ROIC(6.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 14.43% | ||
| ROIC | 6.59% |
ROA(3y)4.87%
ROA(5y)4.46%
ROE(3y)10.92%
ROE(5y)10.24%
ROIC(3y)5%
ROIC(5y)4.85%
1.3 Margins
CUBE has a better Profit Margin (37.79%) than 92.86% of its industry peers.
In the last couple of years the Profit Margin of CUBE has grown nicely.
CUBE's Operating Margin of 45.91% is fine compared to the rest of the industry. CUBE outperforms 71.43% of its industry peers.
CUBE's Operating Margin has improved in the last couple of years.
CUBE has a Gross Margin of 70.55%. This is comparable to the rest of the industry: CUBE outperforms 42.86% of its industry peers.
CUBE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.91% | ||
| PM (TTM) | 37.79% | ||
| GM | 70.55% |
OM growth 3Y7.69%
OM growth 5Y5.17%
PM growth 3Y17.06%
PM growth 5Y7.36%
GM growth 3Y3.46%
GM growth 5Y2.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CUBE is destroying value.
The number of shares outstanding for CUBE remains at a similar level compared to 1 year ago.
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
CUBE has an Altman-Z score of 2.01. This is not the best score and indicates that CUBE is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.01, CUBE belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
CUBE has a debt to FCF ratio of 5.57. This is a neutral value as CUBE would need 5.57 years to pay back of all of its debts.
CUBE's Debt to FCF ratio of 5.57 is amongst the best of the industry. CUBE outperforms 89.29% of its industry peers.
CUBE has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
CUBE has a Debt to Equity ratio (1.06) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.86
WACC7.64%
2.3 Liquidity
A Current Ratio of 0.21 indicates that CUBE may have some problems paying its short term obligations.
CUBE's Current ratio of 0.21 is on the low side compared to the rest of the industry. CUBE is outperformed by 89.29% of its industry peers.
CUBE has a Quick Ratio of 0.21. This is a bad value and indicates that CUBE is not financially healthy enough and could expect problems in meeting its short term obligations.
CUBE has a Quick ratio of 0.21. This is amonst the worse of the industry: CUBE underperforms 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
CUBE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.99%.
CUBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.87% yearly.
Looking at the last year, CUBE shows a small growth in Revenue. The Revenue has grown by 1.67% in the last year.
Measured over the past years, CUBE shows a quite strong growth in Revenue. The Revenue has been growing by 11.93% on average per year.
EPS 1Y (TTM)5.99%
EPS 3Y28.15%
EPS 5Y16.87%
EPS Q2Q%-2.22%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y15.64%
Revenue growth 5Y11.93%
Sales Q2Q%16.53%
3.2 Future
The Earnings Per Share is expected to grow by 2.52% 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 7.16% yearly.
EPS Next Y-2.51%
EPS Next 2Y0.05%
EPS Next 3Y1.18%
EPS Next 5Y2.52%
Revenue Next Year5.38%
Revenue Next 2Y4.36%
Revenue Next 3Y5.04%
Revenue Next 5Y7.16%
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
The Price/Earnings ratio is 27.63, which means the current valuation is very expensive for CUBE.
Compared to the rest of the industry, the Price/Earnings ratio of CUBE indicates a somewhat cheap valuation: CUBE is cheaper than 67.86% of the companies listed in the same industry.
CUBE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.29.
Based on the Price/Forward Earnings ratio of 27.00, the valuation of CUBE can be described as expensive.
67.86% of the companies in the same industry are more expensive than CUBE, based on the Price/Forward Earnings ratio.
CUBE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CUBE is valued a bit more expensive than 60.71% of the companies in the same industry.
71.43% of the companies in the same industry are more expensive than CUBE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.95 | ||
| EV/EBITDA | 20.06 |
4.3 Compensation for Growth
CUBE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.64
EPS Next 2Y0.05%
EPS Next 3Y1.18%
5. Dividend
5.1 Amount
CUBE has a Yearly Dividend Yield of 4.20%, which is a nice return.
Compared to an average industry Dividend Yield of 4.44, CUBE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.19, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
On average, the dividend of CUBE grows each year by 10.42%, which is quite nice.
CUBE has been paying a dividend for at least 10 years, so it has a reliable track record.
CUBE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.42%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
CUBE pays out 113.57% of its income as dividend. This is not a sustainable payout ratio.
CUBE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP113.57%
EPS Next 2Y0.05%
EPS Next 3Y1.18%
CUBESMART
NYSE:CUBE (11/22/2024, 8:04:00 PM)
After market: 49 +0.09 (+0.18%)48.91
+0.31 (+0.64%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 14.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 45.91% | ||
| PM (TTM) | 37.79% | ||
| GM | 70.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.99%
EPS 3Y28.15%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.67%
Revenue growth 3Y15.64%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y