CUBESMART (CUBE) Stock Fundamental Analysis
NYSE:CUBE - New York Stock Exchange, Inc. - US2296631094 - REIT - Currency: USD
Taking everything into account, CUBE scores 5 out of 10 in our fundamental rating. 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. While showing a medium growth rate, CUBE is valued expensive at the moment.
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.
CUBE had positive earnings in each of the past 5 years.
CUBE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CUBE has a Return On Assets of 5.72%. This is in the better half of the industry: CUBE outperforms 76.67% of its industry peers.
CUBE has a better Return On Equity (13.57%) than 80.00% of its industry peers.
CUBE's Return On Invested Capital of 5.93% is fine compared to the rest of the industry. CUBE outperforms 70.00% of its industry peers.
CUBE had an Average Return On Invested Capital over the past 3 years of 5.88%. This is in line with the industry average of 5.28%.
The 3 year average ROIC (5.88%) for CUBE is below the current ROIC(5.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 13.57% | ||
| ROIC | 5.93% |
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 (35.80%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of CUBE has grown nicely.
The Operating Margin of CUBE (44.53%) is better than 70.00% of its industry peers.
CUBE's Operating Margin has improved in the last couple of years.
CUBE's Gross Margin of 69.97% 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 | 44.53% | ||
| PM (TTM) | 35.8% | ||
| GM | 69.97% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CUBE is destroying value.
CUBE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CUBE has been increased compared to 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 1.53. 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 1.53, CUBE is doing good in the industry, outperforming 76.67% of the companies in the same industry.
CUBE has a debt to FCF ratio of 6.12. This is a slightly negative value and a sign of low solvency as CUBE would need 6.12 years to pay back of all of its debts.
CUBE's Debt to FCF ratio of 6.12 is amongst the best of the industry. CUBE outperforms 90.00% of its industry peers.
CUBE has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
CUBE has a Debt to Equity ratio (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 6.12 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.79
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.09 indicates that CUBE may have some problems paying its short term obligations.
CUBE's Current ratio of 0.09 is on the low side compared to the rest of the industry. CUBE is outperformed by 93.33% of its industry peers.
A Quick Ratio of 0.09 indicates that CUBE may have some problems paying its short term obligations.
CUBE has a Quick ratio of 0.09. This is amonst the worse of the industry: CUBE underperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The earnings per share for CUBE have decreased by -6.11% 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 2.15%.
The Revenue has been growing by 10.61% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.11%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)2.15%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%4.45%
3.2 Future
The Earnings Per Share is expected to grow by 1.65% on average over the next years.
Based on estimates for the next years, CUBE will show a small growth in Revenue. The Revenue will grow by 7.46% on average per year.
EPS Next Y-8.34%
EPS Next 2Y-3.42%
EPS Next 3Y-0.12%
EPS Next 5Y1.65%
Revenue Next Year4.78%
Revenue Next 2Y4.21%
Revenue Next 3Y4.36%
Revenue Next 5Y7.46%
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
Based on the Price/Earnings ratio of 25.21, the valuation of CUBE can be described as expensive.
73.33% of the companies in the same industry are more expensive than CUBE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CUBE is valued at the same level.
With a Price/Forward Earnings ratio of 26.55, CUBE can be considered very expensive at the moment.
CUBE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CUBE is cheaper than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, CUBE is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 26.55 |
4.2 Price Multiples
CUBE's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CUBE is valued a bit cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.29 | ||
| EV/EBITDA | 18.81 |
4.3 Compensation for Growth
The decent profitability rating of CUBE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.78
EPS Next 2Y-3.42%
EPS Next 3Y-0.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.80%, CUBE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.77, CUBE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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
120.66% of the earnings are spent on dividend by CUBE. This is not a sustainable payout ratio.
The dividend of CUBE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP120.66%
EPS Next 2Y-3.42%
EPS Next 3Y-0.12%
42.6
+0.03 (+0.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.34%
Inst Owner Change0%
Ins Owners0.77%
Ins Owner Change-4.62%
Market Cap9.71B
Analysts73.33
Price Target47.24 (10.89%)
Short Float %1.7%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Yearly Dividend2.04
Dividend Growth(5Y)9.75%
DP120.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.72%
Min EPS beat(2)-3.3%
Max EPS beat(2)-0.13%
EPS beat(4)0
Avg EPS beat(4)-2.77%
Min EPS beat(4)-4.3%
Max EPS beat(4)-0.13%
EPS beat(8)1
Avg EPS beat(8)-0.82%
EPS beat(12)5
Avg EPS beat(12)9.81%
EPS beat(16)8
Avg EPS beat(16)10.61%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)1.08%
Revenue beat(4)3
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)1.93%
Revenue beat(8)4
Avg Revenue beat(8)-1.31%
Revenue beat(12)5
Avg Revenue beat(12)-0.87%
Revenue beat(16)7
Avg Revenue beat(16)-0.88%
PT rev (1m)2.16%
PT rev (3m)-1.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.07%
EPS NY rev (1m)-1.19%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 26.55 | ||
| P/S | 9.01 | ||
| P/FCF | 17.29 | ||
| P/OCF | 15.48 | ||
| P/B | 3.41 | ||
| P/tB | 3.46 | ||
| EV/EBITDA | 18.81 |
EPS(TTM)1.69
EY3.97%
EPS(NY)1.6
Fwd EY3.77%
FCF(TTM)2.46
FCFY5.78%
OCF(TTM)2.75
OCFY6.46%
SpS4.73
BVpS12.48
TBVpS12.32
PEG (NY)N/A
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 13.57% | ||
| ROCE | 7.5% | ||
| ROIC | 5.93% | ||
| ROICexc | 5.94% | ||
| ROICexgc | 6.04% | ||
| OM | 44.53% | ||
| PM (TTM) | 35.8% | ||
| GM | 69.97% | ||
| FCFM | 52.11% |
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 | 1.21 | ||
| Debt/FCF | 6.12 | ||
| Debt/EBITDA | 4.92 | ||
| Cap/Depr | 30.01% | ||
| Cap/Sales | 6.08% | ||
| Interest Coverage | 5.14 | ||
| Cash Conversion | 89.82% | ||
| Profit Quality | 145.57% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | 1.53 |
F-Score4
WACC7.5%
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)-6.11%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%-7.14%
EPS Next Y-8.34%
EPS Next 2Y-3.42%
EPS Next 3Y-0.12%
EPS Next 5Y1.65%
Revenue 1Y (TTM)2.15%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%4.45%
Revenue Next Year4.78%
Revenue Next 2Y4.21%
Revenue Next 3Y4.36%
Revenue Next 5Y7.46%
EBIT growth 1Y-3.02%
EBIT growth 3Y18.46%
EBIT growth 5Y15.79%
EBIT Next Year46.99%
EBIT Next 3Y16.8%
EBIT Next 5Y15.3%
FCF growth 1Y11.8%
FCF growth 3Y27.5%
FCF growth 5Y25.34%
OCF growth 1Y5.19%
OCF growth 3Y12%
OCF growth 5Y13.72%