One-glance verdict
Within fair range
$46.08 our estimate vs market $42.74
Wall Street consensus: $43.06 (-6.5% lower than our fair-value estimate)
7% below our estimate
Fundamentals snapshot
CubeSmart
CUBE · NYQ · Real Estate · REIT - Industrial
Current price
$42.74
52-week range
$35.09 - $43.26
Market cap
$9.67B
Balance sheet
Stretched
3.93x Stretched
Net debt $3.59B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.8% last year.
- Reward Returns 12.8% on equity, ahead of 60% of its peers.
- Risk Net debt grew 13.3% over 3 years.
- Risk Stock trades 5.8% above its 5-year average P/E.
What this company does
CubeSmart
CubeSmart rents out storage units to people and businesses who need extra space. The money they make comes mostly from those monthly rental payments, which are pretty steady. This matters because steady income means the company can consistently pay its bills and hopefully grow over time.
How the company got here
CubeSmart, originally known as U-Store-It Trust, was founded in July 2004 and went public in October of that year. [2] The company rebranded to CubeSmart in September 2011, a move that signified a shift towards a more customer-centric approach. [4] Over the years, CubeSmart has grown significantly, becoming one of the top three owners and operators of self-storage properties in the United States. [1, 2] A key growth milestone was the acquisition of Storage West in December 2021 for $1.7 billion, which expanded its portfolio. [2] The company is headquartered in Malvern, Pennsylvania, and operates as a real estate investment trust (REIT), meaning it owns and manages income-producing real estate. [1, 2, 6]
What it actually does
CubeSmart provides self-storage solutions for both individuals and businesses. [1, 7] Think of it like renting a secure, private room or space to store your belongings when you don't have enough room at home or in your office. [8] They offer a variety of unit sizes, from small lockers to large spaces, and many locations provide climate-controlled units to protect sensitive items. [1, 9] Beyond just renting space, CubeSmart also offers related services like packing supplies and moving truck rentals to help customers with their storage needs. [9, 12]
Self-Storage Facilities
This is the core of CubeSmart's business, where they make money by renting out storage units. [3] They offer different types of storage, including personal storage for household items, business storage for inventory or documents, and even vehicle, RV, and boat storage at select locations. [1, 9] CubeSmart manages its pricing based on demand and how many units are occupied (occupancy), aiming to keep its facilities full while maximizing rental income. [3] As of December 31, 2024, the company owned 631 self-storage properties. [2]
Third-Party Management Services
Besides owning and operating its own storage facilities, CubeSmart also manages properties for other owners. [1, 3, 9] This means they use their expertise in running storage businesses to help other companies or individuals manage their properties. [9, 10] CubeSmart earns fees for these services, which include managing operations, marketing, revenue, and customer service for these third-party properties. [9, 10] This segment allows CubeSmart to expand its reach and generate revenue without directly owning every property. [3]
What management is betting on now
CubeSmart's strategy focuses on expanding its presence in high-demand markets through acquisitions and new developments. [1] They are also committed to improving the customer experience by investing in technology, such as online reservations and digital tools, to make renting and managing storage easier. [1, 9] Additionally, CubeSmart is focusing on sustainability by implementing energy-efficient practices and renewable energy sources at its facilities. [1, 13] The company believes its quality-focused strategy and scale in the self-storage sector will help it perform well through different economic conditions. [11]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$281.93M
Net income
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Diluted EPS
0.36
Operating cash flow
$148.84M
Free cash flow
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Sources
Revenue
$282.69M
Net income
—
Diluted EPS
0.35
Operating cash flow
$136.49M
Free cash flow
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Sources
Revenue
$285.08M
Net income
—
Diluted EPS
0.36
Operating cash flow
$168.22M
Free cash flow
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Revenue
$282.30M
Net income
—
Diluted EPS
0.36
Operating cash flow
$157.48M
Free cash flow
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Sources
Revenue
$273.04M
Net income
—
Diluted EPS
0.39
Operating cash flow
$146.32M
Free cash flow
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Sources
Revenue
$267.73M
Net income
—
Diluted EPS
0.45
Operating cash flow
$164.67M
Free cash flow
$122.47M
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Sources
Revenue
$270.89M
Net income
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Diluted EPS
0.44
Operating cash flow
$145.40M
Free cash flow
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Revenue
$266.21M
Net income
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Diluted EPS
0.41
Operating cash flow
$170.86M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $46.08 vs current price $42.74
Wall Street consensus is the average analyst price target: $43.06 (-6.5% lower than our fair-value estimate).
Our most-likely fair value is $46.08 a share — about 7.8% away from today's price of $42.74, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $3.6B. Interest coverage 3.9x.
Net debt
$3.59B
Interest coverage
3.93x
CubeSmart's profit covers its interest bill about 3.9 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
CUBE
BASELINE
CubeSmart
Total debt $3.60B Interest coverage 3.93x This is the baseline the peer rows are being compared against.
Total debt $12.19B Interest coverage 7.42x +89% vs CUBE Carries about 1.9x more debt cushion than CUBE.
Total debt $14.17B Interest coverage 2.34x -40% vs CUBE Carries about 1.7x less debt cushion than CUBE.
Total debt $8.15B Interest coverage 1.28x -67% vs CUBE Carries about 3.1x less debt cushion than CUBE.
Total debt $3.46B Interest coverage 2.42x -39% vs CUBE Carries about 1.6x less debt cushion than CUBE.
What you should know
The case for and against CUBE
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.8% last year.
-
Returns 12.8% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 13.3% over 3 years.
-
Stock trades 5.8% above its 5-year average P/E.
-
Insider ownership is only 0.9% (peer median: 5.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
28.12x
Forward P/E
26.88x
P/B
3.86x
P/S
8.43x
EV/EBITDA
18.60x
PEG ratio
5.33x
Profitability
How much profit each dollar creates
Gross margin
70.4%
Operating margin
42.9%
Net margin
30.1%
ROE
12.8%
ROA
4.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.42x
Current ratio
0.17x
Quick ratio
0.12x
Total debt
$3.60B
Total cash
$14.31M
Growth
How the business has been compounding
Revenue TTM
$1.13B
Revenue 5Y CAGR
8.1%
EPS TTM
1.52
EPS 5Y CAGR
4.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$611.03M
Free CF TTM
$608.51M
FCF margin
53.8%
Dividend
Shareholder payout
Yield
5.0%
Payout ratio
139.5%
Last ex-div date
2026-10-01