CubeSmart Fundamental Analysis (NYSE: CUBE)
CubeSmart (NYSE: CUBE) shows moderate financial fundamentals with a PE ratio of 22.94, profit margin of 31.41%, and ROE of 15.56%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 5.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CUBE's fundamental strength across five key dimensions:
Efficiency Score
WeakCUBE struggles to generate sufficient returns from assets.
Valuation Score
ModerateCUBE shows balanced valuation metrics.
Growth Score
ModerateCUBE shows steady but slowing expansion.
Financial Health Score
ModerateCUBE shows balanced financial health with some risks.
Profitability Score
ExcellentCUBE achieves industry-leading margins.
Key Financial Metrics
Is CUBE Expensive or Cheap?
P/E Ratio
CUBE trades at 22.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CUBE's PEG of 2.23 indicates potential overvaluation.
Price to Book
The market values CubeSmart at 3.69 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.83 times EBITDA. This is generally considered low.
How Well Does CUBE Make Money?
Net Profit Margin
For every $100 in sales, CubeSmart keeps $31.41 as profit after all expenses.
Operating Margin
Core operations generate 38.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.56 in profit for every $100 of shareholder equity.
ROA
CubeSmart generates $6.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CubeSmart generates strong operating cash flow of $742.15M, reflecting robust business health.
Free Cash Flow
CubeSmart generates strong free cash flow of $706.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.12 in free cash annually.
FCF Yield
CUBE converts 7.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How CUBE Stacks Against Its Sector Peers
| Metric | CUBE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.94 | 23.47 | Neutral |
| ROE | 15.56% | 762.00% | Weak |
| Net Margin | 31.41% | 2485.00% | Weak |
| Debt/Equity | 1.37 | -37.43 (disorted) | Distorted |
| Current Ratio | 1.20 | 34.03 | Neutral |
| ROA | 6.34% | 258.00% | Weak |
CUBE outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CubeSmart's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.33%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
71.06%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
47.91%
Industry Style: Income, Inflation Hedge, REIT
High Growth