CUBESMART (CUBE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CUBE - US2296631094 - REIT
38.65 USD
-0.33 (-0.85%)
38.65 USD
0 (0%)
CUBE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 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.
- In the past 5 years CUBE always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of CUBE (5.28%) is better than 76.67% of its industry peers.
- 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.
- CUBE has a Return On Invested Capital of 5.71%. This is in the better half of the industry: CUBE outperforms 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 4.86%.
| 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's Profit Margin of 32.21% is fine compared to the rest of the industry. CUBE outperforms 80.00% of its industry peers.
- CUBE's Profit Margin has improved in the last couple of years.
- The Operating Margin of CUBE (41.68%) is better than 63.33% of its industry peers.
- CUBE's Operating Margin has improved in the last couple of years.
- CUBE has a Gross Margin of 69.45%. This is comparable to the rest of the industry: CUBE outperforms 46.67% of its industry peers.
- In the last couple of years the Gross Margin of CUBE has remained more or less at the same level.
| 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.
- Compared to 5 years ago, CUBE has more shares outstanding
- The debt/assets ratio for CUBE has been reduced compared to a year ago.
2.2 Solvency
- CUBE has an Altman-Z score of 1.36. 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 1.36, 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.
- CUBE has a Debt to FCF ratio of 6.17. This is amongst the best in the industry. CUBE outperforms 90.00% 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 of 1.26. This is comparable 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 | 1.36 |
ROIC/WACC0.75
WACC7.57%
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 73.33% of its industry peers.
- A Quick Ratio of 0.37 indicates that CUBE may have some problems paying its short term obligations.
- The Quick ratio of CUBE (0.37) is worse than 73.33% 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.
- The Earnings Per Share has been growing by 14.17% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 4.19% in the past year.
- The Revenue has been growing by 10.61% on average over the past years. This is quite good.
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 -0.92% 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 6.79% yearly.
EPS Next Y-12.43%
EPS Next 2Y-6.84%
EPS Next 3Y-3.26%
EPS Next 5Y-0.92%
Revenue Next Year4.88%
Revenue Next 2Y3.8%
Revenue Next 3Y3.78%
Revenue Next 5Y6.79%
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
- The Price/Earnings ratio is 24.78, which indicates a rather expensive current valuation of CUBE.
- 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 (27.32), we can say CUBE is valued inline with the index average.
- With a Price/Forward Earnings ratio of 25.89, CUBE can be considered very expensive at the moment.
- 66.67% 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 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.78 | ||
| Fwd PE | 25.89 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CUBE indicates a somewhat cheap valuation: CUBE is cheaper than 73.33% of the companies listed in the same industry.
- 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 | 15.57 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
- CUBE has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as CUBE's earnings are expected to decrease with -3.26% in the coming years.
PEG (NY)N/A
PEG (5Y)1.75
EPS Next 2Y-6.84%
EPS Next 3Y-3.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.42%, CUBE is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.65, CUBE has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, CUBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
5.2 History
- The dividend of CUBE is nicely growing with an annual growth rate of 9.75%!
- CUBE has been paying a dividend for at least 10 years, so it has 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
- CUBE pays out 132.52% of its income as dividend. 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-6.84%
EPS Next 3Y-3.26%
CUBESMART / CUBE FAQ
Can you provide the ChartMill fundamental rating for CUBESMART?
ChartMill assigns a fundamental rating of 4 / 10 to CUBE.
What is the valuation status of CUBESMART (CUBE) stock?
ChartMill assigns a valuation rating of 4 / 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 PE and PB ratios for CUBE stock?
The Price/Earnings (PE) ratio for CUBESMART (CUBE) is 24.78 and the Price/Book (PB) ratio is 3.17.
What is the financial health of CUBESMART (CUBE) stock?
The financial health rating of CUBESMART (CUBE) is 3 / 10.