CUBESMART (CUBE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CUBE - US2296631094 - REIT
37.23 USD
-0.12 (-0.32%)
37.23 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 belongs to the best of the industry regarding profitability, 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
In the past year CUBE was profitable.
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
With a decent Return On Assets value of 5.28%, CUBE is doing good in the industry, outperforming 76.67% of the companies in the same industry.
With a decent Return On Equity value of 12.83%, CUBE is doing good in the industry, outperforming 76.67% of the companies in the same industry.
The Return On Invested Capital of CUBE (5.71%) is better than 66.67% of its industry peers.
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
Looking at the Profit Margin, with a value of 32.21%, CUBE is in the better half of 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's Operating Margin of 41.68% is fine compared to the rest of the industry. CUBE outperforms 63.33% of its industry peers.
CUBE's Operating Margin has improved in the last couple of years.
CUBE's Gross Margin of 69.45% is in line compared to the rest of the industry. CUBE outperforms 46.67% of its industry peers.
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.
The number of shares outstanding for CUBE has been increased compared to 1 year ago.
The number of shares outstanding for CUBE has been increased compared to 5 years ago.
CUBE has a better debt/assets ratio than last year.
2.2 Solvency
CUBE has an Altman-Z score of 1.32. 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 1.32, CUBE is doing good in the industry, outperforming 70.00% 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.
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/WACC0.8
WACC7.1%
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.
CUBE has a Current ratio of 0.37. This is in the lower half of the industry: CUBE underperforms 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.
CUBE has a Quick ratio of 0.37. This is in the lower half of the industry: CUBE underperforms 76.67% of its industry peers.
| 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.
Measured over the past years, CUBE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.17% on average per year.
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
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.
The Revenue is expected to grow by 6.76% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 23.87, CUBE is valued on the expensive side.
Based on the Price/Earnings ratio, CUBE is valued a bit cheaper than 76.67% of the companies in the same industry.
CUBE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.72, CUBE is valued on the expensive side.
70.00% of the companies in the same industry are more expensive than CUBE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CUBE to the average of the S&P500 Index (36.59), we can say CUBE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.87 | ||
| Fwd PE | 23.72 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CUBE indicates a rather cheap valuation: CUBE is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15 | ||
| 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)1.68
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.84%, CUBE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.15, CUBE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, CUBE pays a better dividend.
| 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.
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.
CUBE's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP132.52%
EPS Next 2Y-4.48%
EPS Next 3Y-1.16%
37.23
-0.12 (-0.32%)
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 Cap8.49B
Revenue(TTM)1.11B
Net Income(TTM)356.98M
Analysts74.4
Price Target45.77 (22.94%)
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 | 23.87 | ||
| Fwd PE | 23.72 | ||
| P/S | 7.66 | ||
| P/FCF | 15 | ||
| P/OCF | 13.33 | ||
| P/B | 3.05 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 16.72 |
EPS(TTM)1.56
EY4.19%
EPS(NY)1.57
Fwd EY4.22%
FCF(TTM)2.48
FCFY6.67%
OCF(TTM)2.79
OCFY7.5%
SpS4.86
BVpS12.2
TBVpS12.13
PEG (NY)N/A
PEG (5Y)1.68
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
WACC7.1%
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 5Y16.68%
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%.