📊 CUBE Key Takeaways
Is CubeSmart (CUBE) a Good Investment?
CubeSmart demonstrates exceptional profitability with 58.5% operating margins and robust free cash flow generation ($106.6M, 37.8% margin), supported by a fortress balance sheet with minimal leverage (0.04x Debt/Equity). However, growth momentum is decelerating significantly—net income growth of only 0.7% YoY and EPS declining 15.1% YoY despite 5.3% revenue growth indicate emerging margin pressures and operational headwinds that warrant caution.
CubeSmart shows solid fundamental quality with steady revenue growth, strong net profitability, and exceptional cash conversion, as operating cash flow and free cash flow remain robust relative to revenue. The balance sheet appears conservatively levered based on reported debt-to-equity, which supports financial resilience. Offsetting that, earnings-per-share declined despite higher revenue and net income, indicating that per-share growth quality should be watched closely.
Why Buy CubeSmart Stock? CUBE Key Strengths
- Exceptional operating margins (58.5%) and net margins (29.4%) demonstrate pricing power and operational efficiency
- Strong free cash flow generation ($106.6M) with healthy 37.8% FCF margin provides capital flexibility
- Conservative balance sheet with minimal leverage (0.04x Debt/Equity) and healthy 4.6x interest coverage ratio
- Revenue grew 5.3% year over year, indicating continued top-line expansion
- Free cash flow of $566.31M and a 50.4% FCF margin reflect very strong cash generation
- Reported leverage is low at 0.04x debt-to-equity, supporting balance sheet flexibility
CUBE Stock Risks: CubeSmart Investment Risks
- Decelerating growth trajectory: revenue +5.3% YoY but net income +0.7% YoY indicates margin compression
- Deteriorating shareholder returns: EPS declining 15.1% YoY despite positive net income, suggesting significant share dilution
- Weak capital efficiency: ROE of 3.1% and ROA of 1.3% are concerning for a well-capitalized enterprise, questioning deployment effectiveness
- Diluted EPS fell 15.1% year over year despite modest net income growth, weakening per-share performance
- Cash on hand is very low at $5.78M, leaving limited immediate liquidity cushion
- Interest coverage of 4.6x is acceptable but not especially strong if financing costs rise or operating income weakens
Key Metrics to Watch
- Operating margin trend and revenue growth acceleration to confirm margin stabilization
- Free cash flow per share and share count to assess shareholder value creation
- Return on Equity trajectory and capital deployment efficiency
- Diluted EPS trend versus net income growth
- Interest coverage and operating cash flow sustainability
CubeSmart (CUBE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 37.8% 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 Profit Margin, ROE & Profitability Analysis
CUBE vs Real Estate Sector: How CubeSmart Compares
How CubeSmart compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is CubeSmart Stock Overvalued? CUBE Valuation Analysis 2026
Based on fundamental analysis, CubeSmart appears fundamentally strong relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
CubeSmart Balance Sheet: CUBE Debt, Cash & Liquidity
CUBE Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
CUBE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $273.0M | $82.8M | $0.36 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CubeSmart Dividends, Buybacks & Capital Allocation
CUBE SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CUBE's key strengths?
Claude: Exceptional operating margins (58.5%) and net margins (29.4%) demonstrate pricing power and operational efficiency. Strong free cash flow generation ($106.6M) with healthy 37.8% FCF margin provides capital flexibility. ChatGPT: Revenue grew 5.3% year over year, indicating continued top-line expansion. Free cash flow of $566.31M and a 50.4% FCF margin reflect very strong cash generation.
What are the risks of investing in CUBE?
Claude: Decelerating growth trajectory: revenue +5.3% YoY but net income +0.7% YoY indicates margin compression. Deteriorating shareholder returns: EPS declining 15.1% YoY despite positive net income, suggesting significant share dilution. ChatGPT: Diluted EPS fell 15.1% year over year despite modest net income growth, weakening per-share performance. Cash on hand is very low at $5.78M, leaving limited immediate liquidity cushion.
What is CUBE's revenue and growth?
CubeSmart reported revenue of $281.9M.
Does CUBE pay dividends?
CubeSmart pays dividends, with $121.1M 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 $0.36.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CUBE a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, CubeSmart has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CUBE stock overvalued or undervalued?
Valuation metrics for CUBE: ROE of 3.1% (sector avg: 8%), net margin of 29.4% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy CUBE stock in 2026?
Our dual AI analysis gives CubeSmart a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CUBE's free cash flow?
CubeSmart's operating cash flow is $148.8M, with capital expenditures of $42.2M. FCF margin is 37.8%.
How does CUBE compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 29.4% (avg: 20%), ROE 3.1% (avg: 8%), current ratio N/A (avg: 1.5).