CUBESMART (CUBE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CUBE - US2296631094 - REIT
38.24 USD
-0.41 (-1.06%)
38.24 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. CUBE has an excellent profitability rating, but 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.
- CUBE had a positive operating cash flow in the past year.
- Each year in the past 5 years CUBE has 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.
- Looking at the Return On Equity, with a value of 12.83%, CUBE is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.71%, CUBE is in the better half of the industry, outperforming 66.67% 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 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
- 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.
- CUBE's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 41.68%, CUBE is doing good in the industry, outperforming 63.33% of the companies in the same industry.
- CUBE's Operating Margin has improved in the last couple of years.
- CUBE has a Gross Margin (69.45%) which is in line with 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CUBE is destroying value.
- Compared to 1 year ago, CUBE has more shares outstanding
- 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
- Based on the Altman-Z score of 1.36, we must say that CUBE is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.36, CUBE is in the better half of 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 90.00% 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.
- Looking at the Debt to Equity ratio, with a value of 1.26, CUBE is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.76
WACC7.55%
2.3 Liquidity
- A Current Ratio of 0.37 indicates that CUBE may have some problems paying 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.
- 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 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.
- CUBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.17% yearly.
- Looking at the last year, CUBE shows a small growth in Revenue. The Revenue has grown by 4.19% in the last year.
- CUBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.61% yearly.
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 -0.92% on average per year.
- 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
- 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
- Based on the Price/Earnings ratio of 24.51, the valuation of CUBE can be described as rather expensive.
- CUBE's Price/Earnings ratio is a bit cheaper when compared to the industry. CUBE is cheaper than 76.67% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. CUBE is around the same levels.
- CUBE is valuated quite expensively with a Price/Forward Earnings ratio of 25.62.
- Based on the Price/Forward Earnings ratio, CUBE is valued a bit cheaper than 66.67% of the companies in the same industry.
- CUBE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.51 | ||
| Fwd PE | 25.62 |
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.
- Based on the Price/Free Cash Flow ratio, CUBE is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.4 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
- The decent profitability rating of CUBE 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)1.73
EPS Next 2Y-6.84%
EPS Next 3Y-3.26%
5. Dividend
5.1 Amount
- CUBE has a Yearly Dividend Yield of 5.42%, which is a nice return.
- 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 1.82, 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 paid a dividend for at least 10 years, which is a reliable track record.
- CUBE has decreased its dividend 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-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 24.51 and the Price/Book (PB) ratio is 3.13.
What is the financial health of CUBESMART (CUBE) stock?
The financial health rating of CUBESMART (CUBE) is 3 / 10.