NYSE:CUBE

Stock Analysis Report

Executive Summary

CubeSmart is a self-administered and self-managed real estate investment trust.


Snowflake Analysis

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has CubeSmart's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CUBE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.5%

CUBE

9.7%

US REITs

5.3%

US Market


1 Year Return

-16.8%

CUBE

-20.4%

US REITs

-10.7%

US Market

Return vs Industry: CUBE exceeded the US REITs industry which returned -20.1% over the past year.

Return vs Market: CUBE underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

CUBEIndustryMarket
7 Day10.5%9.7%5.3%
30 Day-15.7%-21.5%-13.6%
90 Day-14.4%-24.3%-19.8%
1 Year-13.3%-16.8%-17.1%-20.4%-8.9%-10.7%
3 Year14.5%1.0%-0.9%-13.3%15.5%8.0%
5 Year34.1%11.3%13.3%-10.2%35.2%20.4%

Price Volatility Vs. Market

How volatile is CubeSmart's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CubeSmart undervalued compared to its fair value and its price relative to the market?

43.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CUBE ($27.11) is trading below our estimate of fair value ($46.97)

Significantly Below Fair Value: CUBE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CUBE is poor value based on its PE Ratio (30.6x) compared to the REITs industry average (24.3x).

PE vs Market: CUBE is poor value based on its PE Ratio (30.6x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CUBE is poor value based on its PEG Ratio (8.7x)


Price to Book Ratio

PB vs Industry: CUBE is overvalued based on its PB Ratio (2.9x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is CubeSmart forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CUBE's forecast earnings growth (3.5% per year) is above the savings rate (1.7%).

Earnings vs Market: CUBE's earnings (3.5% per year) are forecast to grow slower than the US market (12.2% per year).

High Growth Earnings: CUBE's earnings are forecast to grow, but not significantly.

Revenue vs Market: CUBE's revenue (4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CUBE's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CUBE's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has CubeSmart performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CUBE has high quality earnings.

Growing Profit Margin: CUBE's current net profit margins (25.8%) are lower than last year (27.4%).


Past Earnings Growth Analysis

Earnings Trend: CUBE's earnings have grown significantly by 30.6% per year over the past 5 years.

Accelerating Growth: CUBE's earnings growth over the past year (3.2%) is below its 5-year average (30.6% per year).

Earnings vs Industry: CUBE earnings growth over the past year (3.2%) underperformed the REITs industry 5%.


Return on Equity

High ROE: CUBE's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is CubeSmart's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CUBE has a high level of physical assets or inventory.

Debt Coverage by Assets: CUBE's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: CUBE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CUBE has a sufficient allowance for bad loans.

Low Risk Liabilities: CUBE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CUBE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CUBE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CUBE has an appropriate level of bad loans.


Next Steps

Dividend

What is CubeSmart's current dividend yield, its reliability and sustainability?

4.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CUBE's dividend (4.87%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: CUBE's dividend (4.87%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: CUBE's dividends per share have been stable in the past 10 years.

Growing Dividend: CUBE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.8%), CUBE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CUBE's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Chris Marr (54yo)

6.25s

Tenure

US$4,142,226

Compensation

Mr. Christopher P. Marr, also known as Chris, has been the Chief Executive Officer and President at CubeSmart, a real estate company that acquires, owns, operates and develops self-storage facilities in th ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD4.14M) is below average for companies of similar size in the US market ($USD7.28M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Marr
CEO, President & Trustee6.25yrsUS$4.14m0.24% $12.8m
Timothy Martin
CFO & Treasurer11.42yrsUS$1.74m0.096% $5.0m
Jeffrey Foster
Senior VP11.17yrsUS$1.23m0.067% $3.5m
Joel Keaton
Chief Operating Officer0.42yrno data0.017% $892.7k
Charles Place
Director6.25yrsno datano data
Daniel Ruble
Vice President of Marketing6.17yrsno datano data
Joe Fitzgerald
Vice President of Operations19.25yrsno datano data
Carey Parsons
Vice President of Operations13.58yrsno datano data
Guy Middlebrooks
Vice President of Third-Party Management6.17yrsno datano data
Joshua Schutzer
Director of Financial Analysisno datano datano data

6.3yrs

Average Tenure

48.5yo

Average Age

Experienced Management: CUBE's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Marr
CEO, President & Trustee6.25yrsUS$4.14m0.24% $12.8m
Jeffrey Rogatz
9.25yrsUS$165.02k0.019% $1.0m
Deborah Salzberg
6.92yrsUS$173.97k0.011% $552.7k
John Remondi
10.42yrsUS$156.47k0.030% $1.5m
Marianne Keler
Chairman of the Board1.92yrsUS$186.47k0.028% $1.4m
John Fain
7.92yrsUS$176.47k0.014% $752.8k
Dorothy Dowling
2.75yrsUS$157.28k0.0065% $341.1k
Piero Bussani
10.17yrsUS$153.97k0.025% $1.3m

7.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: CUBE's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

CubeSmart's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CubeSmart
  • Ticker: CUBE
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$5.239b
  • Market Cap: US$5.186b
  • Shares outstanding: 195.55m
  • Website: https://www.cubesmart.com

Number of Employees


Location

  • CubeSmart
  • 5 Old Lancaster Road
  • Malvern
  • Pennsylvania
  • 19355
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUBENYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 2004
UK8DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2004
UK8BRSE (Berne Stock Exchange)YesCommon SharesCHCHFOct 2004

Biography

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. According to the 2020 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 13:21
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.