What Are The Risk Factors For CubeSmart (CUBE)?


As of Wednesday close, CubeSmart’s (NYSE:CUBE) stock was up $0.52, moving up 1.31 percent to $40.08. The average number of shares traded per day over the past five days has been 9,999,100 shares. 1 time new highs have been achieved over the past 5 days, with a -$2.06 fall in that time frame. In the last twenty days, the average volume was 4,365,585, while in the previous 50 days, it was 2,621,254.

Since last month, CUBE stock retreated -1.28%. Shares of the company fell to $38.67 on 11/29/22, the lowest level in the past month. A 52-week high of $57.34 was reached on 01/03/22 after having rallying from a 52-week low of $36.82. Since the beginning of this year, CUBE’s stock price has dropped by -29.57% or -$16.83, and marked a new high 1 time. However, the stock has declined by -30.10% since its 52-week high.

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Valuation Metrics

Right now, CubeSmart (CUBE) has a P/E ratio of about 35.16. The stock’s beta is 0.54. Besides these, the trailing price-to-sales (P/S) ratio of 9.54, the price-to-book (PB) ratio of 3.16, and the price-to-cash flow ratio of 58.28 may also be considered.

The latest dividend of $0.49 per share was paid out, which is 13.95% more than last year’s $0.43. On Wednesday December 7 2022, a $0.06 dividend increase was announced.

Financial Health

According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 1.08. On the profitability front, the trailing twelve-month gross margin is 70.80% percent. In the year ended September 29, operating margins totaled 30.00%. Based on annual data, CUBE earned $290.6 million in gross profit and brought in $822.56 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 4.20%. Return on equity (ROE) for the past 12 months was 8.90%.

In CubeSmart’s quarter-end financial report for September 29, it reported total debt of $164.12 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CUBE’s revenue rose 18.69% to $248.66 million during the quarter, while net income inched up to $261.41 million. While analysts expected CubeSmart to report $0.28 quarterly earnings, the actual figure was $0.5 per share, beating the consensus estimate by 78.60%. During the quarter, the company generated $172.26 million in EBITDA. The value of shareholders’ equity is $224.57 million.

Technical Picture

This quick technical analysis looks at CubeSmart’s (CUBE) price momentum. With a historical volatility rate of 22.01%, the RSI 9-day stood at 38.89% on 21 December.

With respect to its five-day moving average, the current CubeSmart price is down by -4.89% percent or -$2.06. At present, CUBE shares trade -1.60% below its 20-day simple moving average and -12.18% percent below its 100-day simple moving average. However, the stock is currently trading approximately +3.83% above its SMA50 and -19.31% below its SMA200.

Stochastic coefficient K was 14.51% and Stochastic coefficient D was 19.55%, while ATR was 1.35. Given the Stochastic reading of 20.56% for the 14-day period, the RSI (14) reading has been calculated as 43.71%. As of today, the MACD Oscillator reading stands at -1.68, while the 14-day reading stands at -1.94.

Analyst Ratings

UBS launched its rating on CubeSmart (NYSE: CUBE) to a Buy in a note to investors on October 17, 2022. CubeSmart (CUBE) has been rated Overweight by analysts. According to 0 brokerage firms, CUBE is a sell, and 4 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate CubeSmart stock as buy, with 7 recommending it as overweight.

With a median target price of $47.00, the current consensus forecast for the stock is $45.00 – $55.00. Based on these forecasts, analysts predict CubeSmart (CUBE) will achieve an average price target of $48.00.


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