Analysis of CubeSmart stock:
Based on the 6 analysts’ estimates, the average analyst target price for CubeSmart for the next 12 months is USD 50.67. The average analyst rating for CubeSmart is Strong Buy. The stock analysis of CubeSmart by Stock Target Advisor is Slightly Bearish and is based on 4 positive and 9 negative indications. The stock price of CubeSmart was US$40.25 at the most recent close. The price of CubeSmart’s stock has moved over the last week, month, and year by -0.43%, -1.57%, and -26.58%, respectively.
About CubeSmart (CUBE:NYE)
A self-managed and self-administered real estate investment trust is called CubeSmart. The self-storage facilities owned and operated by the company are built to provide residential and commercial customers with cost-effective, convenient, and safe storage space. CubeSmart is one of the top three owners and managers of self-storage buildings in the US, according to the 2020 Self-Storage Almanac.
Fundamental Stock Analysis:
Positive Fundamentals:
Outstanding total returns:
The stock has beaten its sector on a average annual returns basis
A high dividend yield:
The stock has outperformed its industry rivals over the past 5 years (for a hold duration of at least 12 months) and is in the top percentile in terms of average annual dividend returns. For investors seeking high income yields, this could be an excellent purchase, especially if it is excelling on a total return basis.
A healthy cash flow:
The last four quarters saw positive total cash flow for the organisation.
A favourable free cash flow:
The last four quarters saw the company generate positive total free cash flow.
Negative Fundamentals:
Excessive volatility:
Over the past five years, this company’s total returns have been erratic and higher above the industry average. If you plan to invest in such a stock, be sure your risk tolerance is adequate.
Excessive in comparison to wages:
The stock is trading above the sector median and at a premium to its peers in terms of price to earnings.
Compared to book value, it is overpriced:
On a price to book value basis, the stock is selling at a premium to the median of its peer group.
Overpriced based on cash flow:
On a price to cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
Low equity return:
In comparison to its peers, the management of the company has produced a lower-than-average return on equity during the past four quarters.
Inadequate capitalization:
In comparison to its peers, the management of the company produced a lower median return on invested capital during the past four quarters.
Extremely leveraged:
In terms of debt to equity, the company is heavily leveraged and in the bottom half of its sector rivals. Check the news, though, and study the sector and management remarks. This can be high at times since the business is attempting to grow quickly.
Overpriced on a free cash flow basis:
On a price to free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
Low Growth in Dividends:
In the preceding five years, this stock’s dividend growth was lower than the sector average.
