Cubesmart (CUBE) AI Stock Analysis

• Market Cap: $9.22B
• Dividend Yield: 5.08%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.64
• Revenue Growth: 3.14%
• EPS Growth: -8.01%
• Country: US
• Employees: 3,104
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Industrial
• EPS (TTM): 0.36
• Shares Outstanding: 228,035,280
• 10 Day Avg. Volume: 1,419,092
• 30 Day Avg. Volume: 1,742,494
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 12.09
• Enterprise Value/Gross Profit: 18.95
• Enterprise Value/Ebitda: 18.73
• 1Y Price Target: $46.18
• Price Target Upside: 14.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $46.00 ▲(14.37% Upside)

Cubesmart's strong financial performance and attractive dividend yield are key strengths. However, mixed technical indicators and challenges highlighted in the earnings call, such as increased operating expenses and market-specific issues, moderate the overall outlook.

Positive Factors

Earnings

CUBE results were solid with an earnings and same-store beat, NY outperforming and move-in rate declines compressing.

Financial Performance

Earnings were also raised in line with robust cost controls.

Portfolio Quality

CUBE's high-quality, urban portfolio allows for attractive relative growth with lower risk.

Negative Factors

Growth Potential

CUBE is less exposed to the Sunbelt, which may have higher growth potential in a recovery, but this may require a stronger housing market.

Guidance

CUBE bumped SSRev guidance although below Street/peers.

Market Valuation

CUBE has been trading at a relative valuation discount to peers by 1-2 turns.

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's financial performance is robust with consistent revenue growth, strong profitability margins, and efficient cash flow management. The balance sheet is solid, though attention to the equity ratio is warranted.

Income Statement

Cubesmart has shown consistent revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 1.09% compared to the previous year. The Gross Profit Margin is strong at 65.23%, with a healthy EBIT Margin of 49.32% and EBITDA Margin of 64.52%. However, the Net Profit Margin has slightly decreased to 35.80% from 36.70% the previous year, indicating a need to control costs.

Balance Sheet

The company's Debt-to-Equity Ratio is at a moderate level of 1.21, indicating a balanced approach to leverage. The Return on Equity (ROE) is robust at 13.56%, showcasing effective use of shareholder funds. However, the Equity Ratio stands at 42.19%, reflecting potential risk from liabilities in relation to assets.

Cash Flow

Cubesmart demonstrates strong cash flow performance with a Free Cash Flow growth of -2.18% in TTM, which is a slight decline but remains positive overall. The Operating Cash Flow to Net Income Ratio is 1.63, indicating efficient cash conversion from earnings. The Free Cash Flow to Net Income Ratio of 1.60 further supports strong cash generation capabilities.

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	3.10B	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	550.23M	414.58M	301.18M
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: Positive
• Last Price: 40.22
• 50DMA: Negative
• 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 Positive. The current price of 40.22 is above the 20-day moving average (MA) of 39.66, below the 50-day MA of 41.01, and below the 200-day MA of 41.63, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 53.95 is Neutral, neither overbought nor oversold. The STOCH value of 62.51 is Neutral, 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
PSA	76 Outperform	$50.85B	32.05	18.98%	4.15%	2.49%	-14.10%
CUBE	73 Outperform	$9.22B	24.62	13.43%	5.08%	3.14%	-8.01%
EXR	73 Outperform	$31.15B	30.47	6.97%	4.58%	4.83%	18.94%
SELF	70 Outperform	$59.75M	23.98	5.15%	5.50%	4.08%	11.03%
Sector *	63 Neutral	$7.00B	13.45	-0.52%	6.98%	3.61%	-22.78%
NSA	60 Neutral	$4.27B	50.99	6.19%	7.08%	-7.33%	-66.93%
COLD	48 Neutral	$4.22B	―	-1.67%	6.04%	-1.98%	80.67%

Cubesmart Corporate Events

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.

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.

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.