Cubesmart (CUBE) AI Stock Analysis

• Market Cap: $8.39B
• Dividend Yield: 5.68%
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.54
• Revenue Growth: 4.19%
• EPS Growth: -12.19%
• Country: US
• Employees: 3,104
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.36
• Shares Outstanding: 228,035,930
• 10 Day Avg. Volume: 2,019,375
• 30 Day Avg. Volume: 1,860,311
• 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: 1.52
• Enterprise Value/Revenue: 11.53
• Enterprise Value/Gross Profit: 66.55
• Enterprise Value/Ebitda: 15.57
• 1Y Price Target: $45.00
• Price Target Upside: 22.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.49
• Revenue Forecast (FY): $1.10B

• Rating: 65 Neutral
• Price Target: $40.00 ▲(9.23% Upside)

Cubesmart's overall stock score reflects its strong financial performance and attractive dividend yield, which are offset by bearish technical indicators and valuation concerns. The mixed outlook from the earnings call adds to the cautious sentiment, with the company focusing on gradual improvement and stability.

Positive Factors

Strong Cash Flow

CubeSmart's excellent cash generation relative to profits supports future investments and debt servicing, enhancing long-term financial stability.

Third-Party Management Expansion

Expanding the third-party management platform increases revenue streams and market presence, strengthening the company's competitive position.

Successful Financial Management

Issuing long-term debt at favorable rates demonstrates strong financial management and provides capital for strategic growth initiatives.

Negative Factors

Decline in Same-Store Revenues

Declining same-store revenues indicate potential challenges in maintaining occupancy and pricing power, affecting long-term revenue stability.

Negative Same-Store NOI Growth

Negative NOI growth suggests cost pressures and challenges in operational efficiency, which could impact profitability if not addressed.

Challenging Sunbelt Markets

Supply challenges in key markets like the Sunbelt may hinder growth and require strategic adjustments to capture demand effectively.

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 financial health with solid profitability, efficient operations, and robust cash flow generation. While leverage is moderate, it remains within industry norms. The company should focus on maintaining its cost structure to support gross margins.

Income Statement

Cubesmart's income statement shows strong profitability with a TTM net profit margin of 32.17% and a consistent revenue growth trend. However, the gross profit margin has decreased significantly in the TTM period compared to previous years, indicating potential cost pressures. The EBIT and EBITDA margins remain robust, reflecting efficient operations.

Balance Sheet

The balance sheet reflects moderate leverage with a TTM debt-to-equity ratio of 1.28, which is typical for the REIT industry. Return on equity is healthy at 12.60%, indicating effective use of equity capital. However, the equity ratio suggests a balanced but cautious approach to asset financing.

Cash Flow

Cubesmart's cash flow statement is strong, with a TTM free cash flow to net income ratio over 1, indicating excellent cash generation relative to profits. The operating cash flow to net income ratio is also high, showing robust cash flow management. Free cash flow growth is positive, supporting future investment and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.07B	1.05B	1.01B	822.56M	679.18M
Gross Profit	191.98M	748.48M	554.32M	716.36M	570.46M	472.62M
EBITDA	820.66M	688.82M	703.12M	661.74M	522.65M	414.12M
Net Income	356.46M	391.18M	410.76M	291.26M	223.48M	165.62M
Balance Sheet
Total Assets	6.76B	6.39B	6.23B	6.33B	6.55B	4.78B
Cash, Cash Equivalents and Short-Term Investments	108.39M	71.56M	6.53M	6.06M	11.14M	3.59M
Total Debt	3.49B	3.05B	2.99B	3.06B	3.21B	2.43B
Total Liabilities	3.90B	3.44B	3.34B	3.43B	3.55B	2.69B
Stockholders Equity	2.78B	2.87B	2.80B	2.83B	2.87B	1.83B
Cash Flow
Free Cash Flow	651.46M	631.07M	611.14M	591.47M	449.19M	351.03M
Operating Cash Flow	636.69M	631.07M	611.14M	591.47M	449.19M	351.03M
Investing Cash Flow	-614.48M	-173.96M	-93.82M	-48.77M	-1.85B	-511.44M
Financing Cash Flow	46.46M	-387.67M	-518.03M	-547.09M	1.41B	108.20M

Cubesmart Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.62
• 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 36.62 is below the 20-day moving average (MA) of 38.75, below the 50-day MA of 39.71, and below the 200-day MA of 40.21, indicating a bearish trend. The MACD of -1.11 indicates Positive momentum. The RSI at 30.67 is Neutral, neither overbought nor oversold. The STOCH value of 21.08 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	72 Outperform	$1.00B	11.17	20.14%	4.30%	-4.99%	10123.98%
PSA	68 Neutral	$48.12B	28.50	20.00%	4.15%	2.30%	-0.22%
EXR	66 Neutral	$29.45B	29.72	6.86%	4.96%	3.38%	17.16%
IIPR	66 Neutral	$1.36B	11.45	6.49%	15.69%	-11.22%	-24.64%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CUBE	65 Neutral	$8.39B	23.49	12.82%	5.68%	4.19%	-12.19%
NSA	60 Neutral	$3.95B	47.72	6.89%	7.76%	-4.98%	-65.45%

Cubesmart Corporate Events

CubeSmart’s Earnings Call: Mixed Outlook with Optimistic Guidance

CubeSmart’s recent earnings call presented a mixed outlook, reflecting both positive trends and ongoing challenges. The company is experiencing encouraging developments in move-in rates and financial management, yet it faces hurdles with declining same-store revenue and net operating income (NOI), particularly in certain markets like the Sunbelt. Despite these challenges, CubeSmart remains cautiously optimistic, focusing on gradual improvement and stability.

CubeSmart Reports Q3 2025 Results and Expands Platform

CubeSmart reported its third quarter 2025 results, highlighting stable performance in coastal and urban markets, while sunbelt properties faced challenges balancing rate and occupancy. The company reported a decrease in same-store net operating income and occupancy, with diluted earnings per share at $0.36. CubeSmart also issued $450 million in unsecured senior notes and expanded its third-party management platform by adding 46 stores. The company anticipates closing acquisitions in Arizona, Florida, and New Jersey in the fourth quarter of 2025, and has ongoing development projects in New York.

The most recent analyst rating on (CUBE) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Cubesmart stock, see the CUBE Stock Forecast page.

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.