Cubesmart (CUBE) AI Stock Analysis

• Market Cap: $9.43B
• Dividend Yield: 5.69%
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.51
• Revenue Growth: 4.19%
• EPS Growth: -12.19%
• Country: US
• Employees: 3,104
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.34
• Shares Outstanding: 228,035,930
• 10 Day Avg. Volume: 2,338,573
• 30 Day Avg. Volume: 2,254,910
• PEG Ratio: -1.58
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 7.34
• P/FCF Ratio: 13.55
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 11.63
• Enterprise Value/Gross Profit: 51.16
• Enterprise Value/Ebitda: 18.57
• 1Y Price Target: $42.20
• Price Target Upside: 2.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.43
• Revenue Forecast (FY): $1.13B

• Rating: 71 Outperform
• Price Target: $45.00 ▲(9.38% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

Overall score reflects solid underlying financial strength (strong margins/cash flow) and an earnings-call-supported operational inflection with constructive 2026 guidance. Technicals are favorable but somewhat stretched, while valuation is mixed (high P/E offset by a strong dividend yield). Financial data inconsistencies in the latest period are a key restraint.

Positive Factors

Cash generation

CubeSmart’s operating cash flow trajectory and a clean cash conversion (free cash flow roughly equals net income historically) indicate durable internal funding for dividends, maintenance capex, and selective acquisitions. Reliable OCF supports long-term distributions and reinvestment without needing frequent equity issuance.

High margins / profitability

Sustained high margins reflect the self-storage business model’s operating leverage and low variable costs. Strong profitability enhances resilience across cycles, funds steady FFO, and provides capacity for strategic capital deployment and dividend growth even if top-line growth moderates.

Platform growth & strategic partnerships

Expanding third‑party management and institutional JV activity increases fee‑based, low‑capex revenue and deepens market reach. Partnerships (e.g., institutional ventures) let CubeSmart scale with limited balance sheet exposure, diversifying cash flows and enhancing long‑term growth optionality.

Negative Factors

Same-store weakness

Negative same‑store revenue and NOI point to demand or pricing pressure in established assets, limiting organic growth. For a REIT reliant on recurring rent, prolonged same‑store softness can compress FFO growth and force greater reliance on acquisitions or fee income to sustain distributions.

Leverage sensitivity & data inconsistency

Meaningful historical leverage is typical for REITs but raises refinancing and interest‑rate sensitivity. The anomalous zero‑debt 2025 reporting undermines clarity on true leverage and refinancing timelines, complicating assessment of interest cost risk and financial flexibility over the next several quarters.

Market concentration pressures

Concentrated weakness in high‑growth Sunbelt metros can drag portfolio performance given their strategic importance. If demand or local supply dynamics remain uneven, recovering rates and occupancy may be slow, constraining margin recovery and extending a period of muted organic earnings growth.

Cubesmart Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

CubeSmart generates revenue primarily through rental income from its self-storage facilities. The company charges customers for the use of storage units, with fees varying based on unit size, location, and additional services such as climate control. In addition to rental income, CubeSmart may earn revenue from ancillary services such as retail sales of packing supplies and insurance for stored items. The company's revenue model is also supported by its strategic partnerships with local businesses and online platforms that enhance its marketing reach and customer acquisition. Furthermore, CubeSmart's focus on operational efficiency and customer retention contributes to stable and growing revenue streams.

Cubesmart Financial Statement Overview

Summary

Strong, stable profitability and cash generation (high margins and operating cash flow rising to ~$609M by 2025) support the score, but revenue growth has slowed materially and several 2025 line items appear inconsistent (e.g., negative EBIT vs. strong margins; debt dropping to zero vs. prior leverage), reducing confidence in the latest period.

Income Statement

Revenue has grown steadily over the last several years (from $679M in 2020 to $1.123B in 2025), though the growth rate has cooled materially recently (about 1.5% in 2024 and 1.35% in 2025 vs. >20% in 2021–2022). Profitability remains strong for the business model, with net profit margin near ~30% in 2025 and high EBITDA margin (low-to-mid 60% range historically). Key weakness: 2025 shows an unusual disconnect where reported EBIT is negative while margins are shown as strong, indicating potential non-recurring items or data inconsistency that reduces confidence in headline operating performance for that period.

Balance Sheet

The company shows solid equity backing (equity of ~$2.72B in 2025 on ~$6.64B of assets) and a healthy return on equity in the low-teens (roughly ~12% in 2025, ~14% in 2023–2024). Leverage risk is the main constraint: debt-to-equity ran around ~1.06–1.12 from 2021–2024, which is meaningful and typical for REITs but still elevates sensitivity to refinancing and rates. 2025 reports zero total debt and a zero debt-to-equity ratio, which is a sharp break from prior years and likely reflects a reporting/data issue rather than a true deleveraging event—this uncertainty tempers the score.

Cash Flow

Cash generation is consistently strong and stable: operating cash flow increased from ~$351M (2020) to ~$609M (2025), and free cash flow closely tracks operating cash flow each year. Free cash flow growth was positive in 2021–2024 but turned negative in 2025 (-6.6%), suggesting some near-term pressure or normalization after prior gains. A positive signal is that free cash flow equals net income in every year shown (a clean cash conversion profile), although 2025’s extremely high operating cash flow coverage figure versus prior years again suggests potential one-off or data irregularity that warrants caution.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.12B	1.07B	1.05B	1.01B	822.56M
Gross Profit	255.40M	748.48M	755.55M	716.36M	570.46M
EBITDA	706.03M	688.82M	710.88M	661.74M	522.65M
Net Income	333.78M	391.18M	410.76M	291.26M	223.48M
Balance Sheet
Total Assets	6.64B	6.39B	6.23B	6.33B	6.55B
Cash, Cash Equivalents and Short-Term Investments	5.78M	71.56M	6.53M	6.06M	11.14M
Total Debt	3.53B	3.05B	2.99B	3.06B	3.21B
Total Liabilities	3.86B	3.44B	3.34B	3.43B	3.55B
Stockholders Equity	2.72B	2.87B	2.80B	2.83B	2.87B
Cash Flow
Free Cash Flow	608.51M	631.07M	611.14M	591.47M	449.19M
Operating Cash Flow	608.51M	631.07M	611.14M	591.47M	449.19M
Investing Cash Flow	-571.32M	-173.96M	-93.82M	-48.77M	-1.85B
Financing Cash Flow	-104.62M	-387.67M	-518.03M	-547.09M	1.41B

Cubesmart Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUBE, the sentiment is Positive. The current price of 41.14 is above the 20-day moving average (MA) of 38.91, above the 50-day MA of 37.66, and above the 200-day MA of 38.91, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 69.70 is Neutral, neither overbought nor oversold. The STOCH value of 80.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CUBE.

Cubesmart Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXR	75 Outperform	$33.31B	32.91	7.10%	5.01%	3.38%	17.16%
IIPR	72 Outperform	$1.49B	13.48	6.09%	13.07%	-11.22%	-24.64%
CUBE	71 Outperform	$9.43B	28.24	11.94%	5.69%	4.19%	-12.19%
PSA	71 Outperform	$53.89B	34.06	18.82%	4.63%	2.30%	-0.22%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NSA	61 Neutral	$4.71B	50.39	7.29%	8.28%	-4.98%	-65.45%

Cubesmart Corporate Events

CubeSmart Highlights Growth Strategy in March 2026 Presentation

CubeSmart used its March 2026 investor presentation to underscore its positioning as a growth-focused self-storage REIT with a large, geographically diverse portfolio and a track record of performance through different economic cycles. As of the year ended December 31, 2025, it reported a 35% five-year total shareholder return, 50% five-year growth in adjusted funds from operations per share, 6.6% five-year same-store NOI CAGR, $2.6 billion in five-year acquisition volume, and 57% five-year dividend growth, reinforcing its claim of delivering consistent, shareholder-friendly returns.

Management framed CubeSmart as a compelling investment built on operational sophistication, targeted investments in high-quality assets, and a balance sheet designed to support stable cash generation. The presentation also highlighted an experienced executive team with long tenures in self-storage and REITs, alongside corporate governance practices that include an independent majority board, separated chair and CEO roles, and an ISS governance rating that places the company among the top performers in the REIT sector, signaling strong oversight for investors.

The most recent analyst rating on (CUBE) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Cubesmart stock, see the CUBE Stock Forecast page.

CubeSmart Reports Lower Earnings Amid Ongoing Portfolio Expansion

CubeSmart reported that for the fourth quarter and full year ended December 31, 2025, net income and diluted EPS declined versus 2024, with quarterly EPS falling to $0.34 and full‑year EPS to $1.46, while adjusted funds from operations per share slipped to $0.64 for the quarter and $2.58 for the year. Same‑store net operating income decreased 1.1% in the fourth quarter as modest revenue pressure and higher operating expenses, coupled with higher interest costs from a larger, more expensive debt load, weighed on results even as management signaled an operational inflection point.

The company continued to expand and reposition its portfolio, acquiring two stores in Arizona and Florida in the fourth quarter for $49 million and completing a $452.8 million purchase of the remaining 80% interest in a 28‑store venture earlier in 2025. CubeSmart also grew its third‑party management platform by 136 stores during the year, redeemed $300 million of senior notes, prepaid a $108 million high‑rate mortgage, repurchased $31.9 million of stock, and raised its quarterly dividend by 1.9%, moves that underscore a strategy of disciplined capital allocation and balance sheet optimization despite near‑term earnings pressure.

The most recent analyst rating on (CUBE) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on Cubesmart stock, see the CUBE Stock Forecast page.

CubeSmart Showcases Long-Term Growth Strategy in Investor Update

In a January 2026 investor presentation, CubeSmart highlighted a decade‑plus trajectory of growth in the self‑storage REIT sector, underpinned by 65% five‑year total shareholder return, 56% five‑year growth in adjusted FFO per share, $2.8 billion of acquisitions over five years, and 59% dividend growth through the period ended December 31, 2024. Management underscored the company’s quality‑driven strategy—emphasizing disciplined capital deployment into high‑demographic markets, an investment‑grade balance sheet, and strong corporate governance that ranks among the top 20% of public companies—as positioning CubeSmart to outperform in a fragmented industry characterized by high margins, dynamic demand and limited new supply, with consolidation and future normalization in housing activity expected to provide further long‑term growth opportunities for shareholders and other stakeholders.

The most recent analyst rating on (CUBE) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Cubesmart stock, see the CUBE Stock Forecast page.

CubeSmart Highlights Strong December 2025 Performance

CubeSmart’s December 2025 investor presentation highlights its strong performance and strategic growth in the self-storage industry. The company has achieved significant milestones, including a 65% five-year total shareholder return and a 56% growth in funds from operations per share. With a disciplined investment strategy and a robust management team, CubeSmart is well-positioned to capitalize on industry dynamics and deliver long-term value to shareholders.

The most recent analyst rating on (CUBE) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Cubesmart stock, see the CUBE Stock Forecast page.