CubeSmartCUBE
NYSE • Real Estate
$39.89
P/E
28.09
PEG
—
FCF Yield
—
Rev Growth YoY
+3.3% YoY
Gross Margin
24.5%
Health Score
6/10
D/E Ratio
1.30
Confidence
MEDIUM
Business Snapshot
CubeSmart is a self-storage real estate investment trust (REIT) that owns and operates storage facilities in major U.S. markets, generating revenue primarily through monthly rental income. It operates in the highly fragmented self-storage industry and is one of the top three players alongside Public Storage and Extra Space Storage. With TTM revenue of $1.13B, the company falls into the mid-cap tier. A defining characteristic is its REIT structure, which mandates distribution of most taxable income as dividends, making consistent free cash flow generation essential for maintaining the payout.
Financial Health
Gross margin of 24.5% improved dramatically from -90.5% in the prior year, indicating a significant recovery from a previous distortion, while net margin of 28.9% is healthy and typical for a well-managed REIT. Debt/equity of 1.3x is manageable but elevated relative to less leveraged peers, and the current ratio of 0.13x signals very low short-term liquidity — a common trait for REITs that rely on property-level cash flows and credit lines...
Risk Assessment
- EARNINGS QUALITY — The company has beaten estimates in 0 of the last 4 quarters, raising questions about forecast credibility and operational execution.
- REVENUE DECELERATION — Revenue grew 3.3% YoY but declined 0.3% QoQ, signalling a loss of near-term momentum.
- DEBT / LIQUIDITY — Current ratio of 0.13x is extremely low, indicating minimal short-term liquidity coverage, though typical for REITs that manage liquidity through credit facilities.
- 52-WEEK POSITION — The current price of $39.89 is 9.6% below the 52-week high of $44.13 and near the midpoint of the range, suggesting a sideways pattern with no clear breakout.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The FMP DCF ($84.16) and Python DCF (not calculable) diverge significantly, creating uncertainty about intrinsic value estimates....
Metric deep-dives