CUBESMART (CUBE) Stock Fundamental Analysis
USA - NYSE:CUBE - US2296631094 - REIT
41.33 USD
-0.35 (-0.84%)
41.33 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CUBE. CUBE was compared to 30 industry peers in the Specialized REITs industry. CUBE scores excellent on profitability, but there are concerns on its financial health. CUBE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CUBE was profitable.
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 5.59%. This is in the better half of the industry: CUBE outperforms 76.67% of its industry peers.
With a decent Return On Equity value of 13.32%, 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 5.90%. This is in the better half of the industry: CUBE outperforms 73.33% 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 4.79%.
The 3 year average ROIC (5.88%) for CUBE is below the current ROIC(5.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 13.32% | ||
| ROIC | 5.9% |
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
The Profit Margin of CUBE (34.27%) is better than 83.33% of its industry peers.
In the last couple of years the Profit Margin of CUBE has grown nicely.
Looking at the Operating Margin, with a value of 43.37%, CUBE is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
CUBE's Operating Margin has improved in the last couple of years.
CUBE has a Gross Margin of 69.87%. This is comparable 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 | 43.37% | ||
| PM (TTM) | 34.27% | ||
| GM | 69.87% |
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.
The number of shares outstanding for CUBE has been increased compared to 1 year ago.
CUBE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CUBE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that CUBE is in the distress zone and has some risk of bankruptcy.
CUBE has a better Altman-Z score (1.49) than 76.67% of its industry peers.
The Debt to FCF ratio of CUBE is 6.28, which is on the high side as it means it would take CUBE, 6.28 years of fcf income to pay off all of its debts.
CUBE's Debt to FCF ratio of 6.28 is amongst the best of the industry. CUBE outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that CUBE has dependencies on debt financing.
CUBE's Debt to Equity ratio of 1.22 is in line compared to the rest of the industry. CUBE outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.81
WACC7.26%
2.3 Liquidity
CUBE has a Current Ratio of 0.10. 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 worse Current ratio (0.10) than 90.00% of its industry peers.
A Quick Ratio of 0.10 indicates that CUBE may have some problems paying its short term obligations.
CUBE's Quick ratio of 0.10 is on the low side compared to the rest of the industry. CUBE is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
The earnings per share for CUBE have decreased by -7.87% 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 3.14%.
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)-7.87%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%-12.2%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%6.05%
3.2 Future
The Earnings Per Share is expected to decrease by -1.17% on average over the next years.
The Revenue is expected to grow by 6.76% on average over the next years.
EPS Next Y-9.86%
EPS Next 2Y-4.08%
EPS Next 3Y-1.13%
EPS Next 5Y-1.17%
Revenue Next Year5.74%
Revenue Next 2Y4.53%
Revenue Next 3Y4.51%
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.
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
With a Price/Earnings ratio of 25.20, CUBE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CUBE indicates a somewhat cheap valuation: CUBE is cheaper than 73.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CUBE to the average of the S&P500 Index (27.08), we can say CUBE is valued inline with the index average.
A Price/Forward Earnings ratio of 26.12 indicates a quite expensive valuation of CUBE.
70.00% of the companies in the same industry are more expensive than CUBE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, CUBE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.2 | ||
| Fwd PE | 26.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CUBE is valued a bit cheaper than 66.67% of the companies in the same industry.
CUBE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CUBE is cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.29 | ||
| EV/EBITDA | 18.23 |
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)1.78
EPS Next 2Y-4.08%
EPS Next 3Y-1.13%
5. Dividend
5.1 Amount
CUBE has a Yearly Dividend Yield of 4.96%, which is a nice return.
CUBE's Dividend Yield is comparable with the industry average which is at 5.77.
CUBE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
5.2 History
On average, the dividend of CUBE grows each year by 9.75%, which is quite nice.
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 125.21% 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.
DP125.21%
EPS Next 2Y-4.08%
EPS Next 3Y-1.13%
41.33
-0.35 (-0.84%)
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 Change-0.03%
Ins Owners0.77%
Ins Owner Change0.78%
Market Cap9.42B
Revenue(TTM)1.09B
Net Income(TTM)374.85M
Analysts72.8
Price Target46.02 (11.35%)
Short Float %2.55%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
Yearly Dividend2.04
Dividend Growth(5Y)9.75%
DP125.21%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.37%
Min EPS beat(2)-4.61%
Max EPS beat(2)-0.13%
EPS beat(4)0
Avg EPS beat(4)-2.85%
Min EPS beat(4)-4.61%
Max EPS beat(4)-0.13%
EPS beat(8)1
Avg EPS beat(8)-1.4%
EPS beat(12)4
Avg EPS beat(12)9.26%
EPS beat(16)7
Avg EPS beat(16)9.57%
Revenue beat(2)2
Avg Revenue beat(2)1.06%
Min Revenue beat(2)1.03%
Max Revenue beat(2)1.08%
Revenue beat(4)3
Avg Revenue beat(4)0.19%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)1.08%
Revenue beat(8)5
Avg Revenue beat(8)-0.49%
Revenue beat(12)6
Avg Revenue beat(12)-0.61%
Revenue beat(16)7
Avg Revenue beat(16)-0.92%
PT rev (1m)-0.9%
PT rev (3m)-3.1%
EPS NQ rev (1m)-2.21%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.2 | ||
| Fwd PE | 26.12 | ||
| P/S | 8.62 | ||
| P/FCF | 17.29 | ||
| P/OCF | 15.35 | ||
| P/B | 3.35 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 18.23 |
EPS(TTM)1.64
EY3.97%
EPS(NY)1.58
Fwd EY3.83%
FCF(TTM)2.39
FCFY5.78%
OCF(TTM)2.69
OCFY6.51%
SpS4.8
BVpS12.34
TBVpS12.22
PEG (NY)N/A
PEG (5Y)1.78
Graham Number21.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 13.32% | ||
| ROCE | 7.47% | ||
| ROIC | 5.9% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 6% | ||
| OM | 43.37% | ||
| PM (TTM) | 34.27% | ||
| GM | 69.87% | ||
| FCFM | 49.82% |
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 | 1.22 | ||
| Debt/FCF | 6.28 | ||
| Debt/EBITDA | 4.83 | ||
| Cap/Depr | 29.44% | ||
| Cap/Sales | 6.3% | ||
| Interest Coverage | 4.77 | ||
| Cash Conversion | 86.65% | ||
| Profit Quality | 145.38% | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 1.49 |
F-Score4
WACC7.26%
ROIC/WACC0.81
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)-7.87%
EPS 3Y13.71%
EPS 5Y14.17%
EPS Q2Q%-12.2%
EPS Next Y-9.86%
EPS Next 2Y-4.08%
EPS Next 3Y-1.13%
EPS Next 5Y-1.17%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y9.03%
Revenue growth 5Y10.61%
Sales Q2Q%6.05%
Revenue Next Year5.74%
Revenue Next 2Y4.53%
Revenue Next 3Y4.51%
Revenue Next 5Y6.76%
EBIT growth 1Y-3.39%
EBIT growth 3Y18.46%
EBIT growth 5Y15.79%
EBIT Next Year48.55%
EBIT Next 3Y17.01%
EBIT Next 5Y15.47%
FCF growth 1Y1.92%
FCF growth 3Y27.5%
FCF growth 5Y25.34%
OCF growth 1Y1.63%
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 4 / 10 to CUBE.
What is the valuation status for 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 expected EPS growth for CUBE stock?
The Earnings per Share (EPS) of CUBESMART (CUBE) is expected to decline by -9.86% 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 125.21%.