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Fundamental analysis: CubeSmart (CUBE)

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Good), and the company's inclination to return cash to the stockholders (Poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.5

  • Business has been growing at a good pace. It's been weak when measured against peer companies.
  • CubeSmart business trend stability is very good. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 9.3

  • CUBE profit margins -on goods and services sold- are usually excellent. They stand mediocre against rival companies.
  • Business profit on sales tends to be huge. It's below average when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain in a very weak position compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still mediocre against similar companies.
  • Profits -before income taxes- are usually excellent considering total sales, and remain below average when measured against rivals.
  • Total net profit tends to be excellent when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 4.7

  • CubeSmart profit -on goods and services sold- has been growing at a good pace. It's been a slight improvement compared to competitors.
  • In recent years, earnings growth -on operations- have been almost stagnant, which has been mediocre against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a low pace, which compares weak when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a slow tempo. It turns to be close to average when compared to similar stocks.
  • In past years, profits -before income taxes- grew at a low speed. It was somewhat worse than rivals.
  • In the previous years, growth on total net profit has been very low, and weak when measured against peer companies.
  • Earnings per share have grown at a very low rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 9.0

  • CUBE managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been slightly worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.2

  • CubeSmart usually gets very good returns on the resources it controls. It proves encouraging in relation to peer firms.
  • The company normally gets good proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
  • Profitability -in relation to owned resources- is usually quite good. It ranks encouraging in relation to competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 4.8

  • CUBE usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands encouraging in relation to rival firms.
  • The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is below average when measured against industry peers.
  • In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came mediocre against competitors.
  • In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved in a very weak position compared to similar firms.
  • The company usually uses a large portion of genuine funds generated to pay dividends. There could be some concerns on sustainability if business takes a dive. Sustainability looks somewhat worse than comparable companies.
  • The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • The company uses a significant portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks more than average in relation to competitors.

Balance Sheet score: 6.5

  • CubeSmart has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be a disappointment compared to similar firms.
  • Almost no resources controlled were provided for with financial debt. Financial strength is great. Company could significantly increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly worse than rival firms.
  • Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
  • Usually, sales are on cash. It still ranks below average when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes less than one month from the purchase to charging customers. It happens to be somewhat worse than peers.
  • On average pays suppliers many months after the purchase. It ranks almost average when measured against industry peers.
  • The company charges its customers long before it must pay its suppliers, so the more it sales, the more free funds it gets. It's rather normal in relation to similar companies.
  • Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands slightly worse than rival firms.
  • Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks encouraging in relation to comparable enterprises.
  • Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
  • Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 4.8

  • CubeSmart looks very expensive in relation to profits and financial position. It happens to be weak when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands slightly worse than similar companies.
  • The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still similar to industry firms.
  • In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up in a weak position compared to peer ventures.
  • The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks weak when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks close to average when compared to rival firms.
  • The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be below average when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still lacking compared to peer companies.

Total score: 6.7


CUBE logos

Company at a glance: CubeSmart (CUBE)

Sector, industry: Real Estate, REIT—Industrial

Market Cap: 10.22 billions

Revenues TTM: 0.97 billions

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.

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Good), and the company's inclination to return cash to the stockholders (Poor).