Cubesmart (CUBE) AI Stock Analysis

• Market Cap: $9.15B
• Dividend Yield: 5.19%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.61
• 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: 1,433,034
• 30 Day Avg. Volume: 1,652,072
• PEG Ratio: -5.01
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 9.10
• P/FCF Ratio: 15.37
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 12.09
• Enterprise Value/Gross Profit: 18.95
• Enterprise Value/Ebitda: 18.73
• 1Y Price Target: $45.55
• Price Target Upside: 13.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $45.00 ▲(12.39% Upside)

Cubesmart's overall stock score of 73 reflects solid financial performance and a strong dividend yield, balanced by technical indicators showing mixed signals and challenges highlighted in the earnings call. The company's robust profitability and strategic growth in third-party management are positive, but concerns about cash flow and revenue growth expectations weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth and strong margins indicate effective business operations and market demand, supporting long-term financial health.

Third-Party Management Expansion

Expansion in third-party management enhances revenue streams and diversifies business operations, strengthening market position.

Occupancy Improvement

Improved occupancy rates reflect strong demand and operational efficiency, contributing to stable long-term revenue generation.

Negative Factors

Negative Same-Store Revenue Growth

Decline in same-store revenue growth suggests potential challenges in maintaining growth momentum, impacting future profitability.

Increased Operating Expenses

Rising operating expenses can pressure profit margins, reducing financial flexibility and impacting long-term cost management.

Challenges in Sunbelt Markets

Challenges in key markets like Florida and Arizona may hinder growth and affect overall market performance, impacting strategic goals.

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, which accounts for the largest portion of its income. Customers pay monthly fees for the use of storage space, and prices vary based on unit size, location, and any additional features such as climate control. The company also earns income from ancillary services, such as the sale of packing supplies, insurance for stored items, and rental of moving trucks. Additionally, CubeSmart may benefit from partnerships with local businesses and moving companies, which can drive customer referrals and increase occupancy rates at its facilities. The strategic acquisition of properties in high-demand markets further enhances its revenue potential.

Cubesmart Financial Statement Overview

Summary

Cubesmart demonstrates strong revenue growth and profitability with robust gross and net profit margins. However, a decline in free cash flow growth and reliance on debt financing are areas of concern.

Income Statement

Cubesmart has demonstrated consistent revenue growth with a TTM revenue growth rate of 1.49% and strong profitability metrics. The gross profit margin is robust at 63.80%, and the net profit margin is healthy at 34.27%. However, there is a slight decline in margins compared to previous years, indicating potential cost pressures.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.22, indicating a balanced approach to leveraging. The return on equity is solid at 13.25%, reflecting efficient use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Cubesmart's cash flow performance shows a decline in free cash flow growth at -56.20% TTM, which is a concern. However, the operating cash flow to net income ratio is strong at 14.20, indicating good cash generation relative to net income. The free cash flow to net income ratio remains stable at 1.0.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.07B	1.05B	1.01B	822.56M	679.18M
Gross Profit	697.89M	748.48M	554.32M	716.36M	570.46M	472.62M
EBITDA	706.04M	688.82M	703.12M	661.74M	547.93M	414.12M
Net Income	374.85M	391.18M	410.76M	291.26M	223.48M	165.62M
Balance Sheet
Total Assets	6.71B	6.39B	6.23B	6.33B	6.55B	4.78B
Cash, Cash Equivalents and Short-Term Investments	8.74M	71.56M	6.53M	6.06M	11.14M	3.59M
Total Debt	3.42B	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	2.81B	2.87B	2.80B	2.83B	2.87B	1.83B
Cash Flow
Free Cash Flow	613.86M	631.07M	611.14M	591.47M	449.19M	351.03M
Operating Cash Flow	613.86M	631.07M	611.14M	591.47M	449.19M	351.03M
Investing Cash Flow	-610.79M	-173.96M	-93.82M	-48.77M	-1.85B	-511.44M
Financing Cash Flow	3.99M	-387.67M	-518.03M	-547.09M	1.41B	108.20M

Cubesmart Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 40.04 is below the 20-day moving average (MA) of 40.13, above the 50-day MA of 39.80, and below the 200-day MA of 40.32, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 42.69 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
PLYM	78 Outperform	$990.97M	7.63	25.64%	4.36%	-3.63%	436.37%
PSA	76 Outperform	$51.02B	32.03	18.98%	4.09%	2.49%	-14.10%
CUBE	73 Outperform	$9.15B	24.34	13.43%	5.19%	3.14%	-8.01%
EXR	71 Outperform	$31.37B	31.04	6.97%	4.54%	4.83%	18.94%
IIPR	69 Neutral	$1.54B	11.88	7.04%	13.85%	-7.80%	-18.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NSA	59 Neutral	$4.05B	48.51	6.19%	7.49%	-7.33%	-66.93%

Cubesmart Corporate Events

CubeSmart Highlights Strategic Focus in Investor Presentation

CubeSmart’s investor presentation highlights its strategic focus on growth and operational performance, with a strong emphasis on quality investments and a disciplined investment strategy. The company aims to leverage its sophisticated operating platform and experienced management team to drive efficiencies and meet evolving customer needs, positioning itself for long-term value creation in the self-storage sector.

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 Issues $450 Million in Senior Notes

On August 20, 2025, CubeSmart and its Operating Partnership completed the issuance and sale of $450 million in senior notes due 2035, with a 5.125% interest rate. The proceeds, approximately $440.2 million after expenses, are intended for repaying outstanding debts and general corporate purposes, potentially impacting the company’s financial flexibility and market positioning.

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

CubeSmart Announces $450 Million Notes Offering

On August 11, 2025, CubeSmart and its operating partnership executed an underwriting agreement for a public offering of $450 million in senior unsecured notes due 2035, with a 5.125% interest rate. The offering, expected to close on August 20, 2025, aims to use the proceeds to repay outstanding debt and fund general corporate purposes, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (CUBE) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Cubesmart stock, see the CUBE Stock Forecast page.