Cubesmart (CUBE) AI Stock Analysis

• Market Cap: $9.09B
• Dividend Yield: 5.19%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.68
• Revenue Growth: 3.14%
• EPS Growth: -8.01%
• Country: US
• Employees: 3,104
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.36
• Shares Outstanding: 228,035,280
• 10 Day Avg. Volume: 2,195,516
• 30 Day Avg. Volume: 1,845,824
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 12.27
• Enterprise Value/Gross Profit: 18.81
• Enterprise Value/Ebitda: 19.02
• 1Y Price Target: $46.80
• Price Target Upside: 18.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: $45.00 ▲(13.46% Upside)

Cubesmart's strong financial performance and strategic growth initiatives position it well for the future. However, technical indicators suggest current market weakness, and valuation metrics are mixed. Earnings call insights provide a cautiously optimistic outlook, and corporate events demonstrate strategic positioning.

Positive Factors

Acquisitions

CUBE can grow externally via accretive acquisitions with a smaller asset base compared to peers and an under-levered balance sheet.

Earnings

CUBE results were solid with an earnings and same-store beat, indicating strong company performance.

Financial Guidance

CUBE raised its fiscal year SSNOI guide to -2% from -2.9%, demonstrating a positive outlook for future revenue.

Negative Factors

Growth Comparison

CUBE is less exposed to the Sunbelt, which may have higher growth potential in a recovery, indicating limited growth opportunities compared to certain regions.

Revenue Guidance

CUBE bumped SSRev guidance although below Street/peers, suggesting possible challenges in meeting market expectations.

Valuation

CUBE has been trading at a relative valuation discount to peers by 1-2 turns, indicating potential undervaluation concerns.

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 the rental of storage units at its self-storage facilities. The company's key revenue streams include monthly rental fees from customers who lease storage space for residential, business, or vehicle storage purposes. Additionally, CubeSmart offers a range of ancillary services, such as tenant insurance, packing supplies, and truck rentals, which contribute to its earnings. Significant partnerships with online marketplaces and marketing platforms enhance its visibility and customer acquisition efforts, further supporting revenue growth. The company also benefits from strategic acquisitions and the development of new properties, expanding its footprint and increasing its income potential.

Cubesmart Financial Statement Overview

Summary

Cubesmart has a robust financial standing with consistent revenue growth, strong cash flow management, and a debt-free position in 2024. However, the negative EBIT highlights some operational challenges.

Income Statement

Cubesmart has shown consistent revenue growth over the years, with a notable increase of 5.6% from 2022 to 2023. However, the EBIT margin experienced a significant decline due to negative EBIT in 2024, indicating operational challenges. Despite this, the net profit margin remains robust at 36.7% for 2024, driven by strong net income performance.

Balance Sheet

The company's balance sheet is strong with a debt-free position in 2024, reflecting excellent financial stability. The equity ratio stands at 44.9%, indicating a solid capital structure primarily funded by equity. Return on equity is healthy at 13.6%, showcasing effective management in generating returns for shareholders.

Cash Flow

Cubesmart has demonstrated strong cash flow management, with free cash flow growth of 3.3% from 2022 to 2023, and continued robust free cash flow of $631 million in 2024. The operating cash flow to net income ratio of 1.61 in 2023 highlights efficient cash generation relative to income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	1.07B	1.05B	1.01B	822.56M	679.18M
Gross Profit	703.18M	748.48M	755.55M	716.36M	570.46M	455.54M
EBITDA	695.30M	688.82M	703.12M	696.37M	547.93M	414.12M
Net Income	385.85M	391.18M	410.76M	199.19M	130.58M	89.79M
Balance Sheet
Total Assets	6.74B	6.39B	6.23B	6.33B	6.55B	4.78B
Cash, Cash Equivalents and Short-Term Investments	10.75M	71.56M	6.53M	6.06M	11.14M	3.59M
Total Debt	3.44B	3.05B	2.99B	3.06B	3.21B	2.43B
Total Liabilities	3.82B	3.44B	3.34B	3.43B	3.55B	2.69B
Stockholders Equity	2.84B	2.87B	2.80B	2.83B	2.87B	1.83B
Cash Flow
Free Cash Flow	617.33M	631.07M	611.14M	550.23M	414.58M	301.18M
Operating Cash Flow	628.75M	631.07M	611.14M	591.47M	449.19M	351.03M
Investing Cash Flow	-608.57M	-173.96M	-93.82M	-48.77M	-1.85B	-511.44M
Financing Cash Flow	-12.03M	-387.67M	-518.03M	-547.09M	1.41B	108.20M

Cubesmart Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUBE, the sentiment is Negative. The current price of 39.66 is below the 20-day moving average (MA) of 41.13, below the 50-day MA of 41.84, and below the 200-day MA of 42.20, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 37.64 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CUBE.

Cubesmart Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSA	77 Outperform	$49.45B	30.75	18.98%	4.26%	2.49%	-14.10%
CUBE	74 Outperform	$9.09B	24.17	13.43%	5.19%	3.14%	-8.01%
SELF	74 Outperform	$58.73M	24.27	4.98%	5.62%	3.58%	8.22%
Sector *	71 Outperform	¥221.23B	14.66	10.67%	3.77%	18.22%	20.90%
EXR	66 Neutral	$30.72B	30.12	6.97%	4.65%	4.83%	18.94%
NSA	56 Neutral	$4.07B	48.69	6.19%	7.67%	-9.89%	-70.29%
COLD	53 Neutral	$4.68B	―	-3.56%	5.47%	-1.18%	62.96%

Cubesmart Corporate Events

CubeSmart Expands Management Platform Amid Q2 2025 Results

CubeSmart reported its second quarter 2025 results, highlighting a modest improvement in seasonal performance compared to the previous year. The company achieved a diluted EPS of $0.36 and an adjusted FFO per diluted share of $0.65. Despite a decrease in same-store net operating income by 1.1% due to a slight revenue decline and increased expenses, CubeSmart expanded its third-party management platform by adding 30 stores, totaling 873 managed locations. The company also acquired the remaining 80% interest in a 28-store real estate venture for $452.8 million. Looking forward, CubeSmart anticipates a stable operating environment and has raised its full-year FFO per share guidance.

The most recent analyst rating on (CUBE) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Cubesmart stock, see the CUBE Stock Forecast page.

CubeSmart Highlights Strategic Growth in Self-Storage Sector

CubeSmart’s recent investor presentation highlights its strategic positioning and growth trajectory within the self-storage sector. The company emphasizes its robust portfolio, national scale, and focus on quality investments to drive long-term shareholder value. With a strong presence in key markets, particularly New York City, CubeSmart leverages its industry-leading demographics and operational platform to maintain cash flow stability and capitalize on demand trends. The company’s disciplined investment strategy and commitment to corporate responsibility underpin its sustainable growth outlook.