📊 CUBE Key Takeaways
Investment Thesis
CubeSmart demonstrates exceptional operational efficiency and cash generation with a 50.4% free cash flow margin and $566.3M in FCF from $1.1B revenue. The REIT maintains fortress-like financial health with a 0.04x debt-to-equity ratio and 4.6x interest coverage, providing substantial capacity for dividends or reinvestment while revenue grows 5.3% YoY.
CUBE Strengths
- Exceptional free cash flow generation at 50.4% of revenue, indicating highly efficient asset monetization
- Conservative capital structure with 0.04x debt-to-equity and strong 4.6x interest coverage ratio
- Robust net margin of 29.7% demonstrating pricing power and operational leverage
- Solid revenue growth of 5.3% YoY with 12.3% ROE indicating efficient equity deployment
- Strong operating cash flow of $608.5M substantially exceeds modest capital expenditure of $42.2M
CUBE Risks
- Diluted EPS declined 15.1% YoY despite net income growth, suggesting significant share dilution or non-cash charges
- Minimal cash position of $5.8M relative to $3.9B liabilities creates vulnerability without revenue stability
- Operating margin of 14.7% is modest and may face compression if same-store occupancy or pricing normalizes
- Real estate sector cyclicality exposes FCF generation to economic downturns affecting storage demand
- 10 Form 4 insider filings in 90 days warrant monitoring for insider sentiment or governance concerns
Key Metrics to Watch
- Quarterly revenue trends and same-store occupancy rates to assess pricing sustainability
- Free cash flow and dividend payout ratios to evaluate capital allocation discipline
- Debt-to-total-capitalization and refinancing rates given low absolute cash balance
- Operating margin expansion/contraction and cost inflation pressures
- Net rental rate growth and tenant retention metrics as leading indicators
CUBE Financial Metrics
💡 AI Analyst Insight
The 50.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CUBE Profitability Ratios
CUBE vs Default Sector
How CubeSmart compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CUBE Balance Sheet & Liquidity
CUBE 5-Year Financial Trend
5-Year Trend Summary: CubeSmart's revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.82 reflects profitable operations.
CUBE Growth Metrics (YoY)
CUBE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $270.9M | $82.4M | $0.36 |
| Q2 2025 | $266.2M | $82.4M | $0.36 |
| Q1 2025 | $261.4M | $88.7M | $0.39 |
| Q3 2024 | $267.9M | $101.0M | $0.44 |
| Q2 2024 | $260.8M | $94.2M | $0.41 |
| Q1 2024 | $256.5M | $94.9M | $0.42 |
| Q3 2023 | $261.4M | $103.1M | $0.45 |
| Q2 2023 | $248.7M | $58.6M | $0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CUBE Capital Allocation
CUBE SEC Filings
Access official SEC EDGAR filings for CubeSmart (CIK: 0001298675)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CUBE
What is the AI rating for CUBE?
CubeSmart (CUBE) has an AI rating of STRONG BUY with 82% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CUBE's key strengths?
Exceptional free cash flow generation at 50.4% of revenue, indicating highly efficient asset monetization. Conservative capital structure with 0.04x debt-to-equity and strong 4.6x interest coverage ratio.
What are the risks of investing in CUBE?
Diluted EPS declined 15.1% YoY despite net income growth, suggesting significant share dilution or non-cash charges. Minimal cash position of $5.8M relative to $3.9B liabilities creates vulnerability without revenue stability.
What is CUBE's revenue and growth?
CubeSmart reported revenue of $1.1B.
Does CUBE pay dividends?
CubeSmart pays dividends, with $476.3M distributed to shareholders in the trailing twelve months.
Where can I find CUBE SEC filings?
Official SEC filings for CubeSmart (CIK: 0001298675) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CUBE's EPS?
CubeSmart has a diluted EPS of $1.46.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.