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CubeSmart

CUBE
47
REIT - Industrial · Real Estate
Price
$41.89
-0.18 (-0.43%)
Market Cap
$9.53B
Exchange
New York Stock Exchange
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+11.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 205.0M (2021) → 229.2M (2025)

CubeSmart is a real estate company that owns and operates self-storage facilities across the United States. It rents out storage units to everyday people and small businesses who need extra space to store furniture, boxes, vehicles, and other belongings. CubeSmart is one of the four largest self-storage companies in the country, with a portfolio concentrated in major urban and suburban markets.

The company makes money by collecting monthly rent from storage unit customers, similar to how a landlord charges rent for an apartment. CubeSmart operates roughly 1,200 facilities, primarily in high-density coastal cities where land is expensive and people have less living space, which supports stronger demand and pricing power. The main risk the business faces is oversupply — when too many new storage facilities open in the same market, it puts pressure on occupancy rates and rents, which can squeeze revenue and slow growth.

Winston Score History

Politician Trades

2 trades / 12mo

1 Congressional buy and 1 sell on CUBE in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-7.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

6.7%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$82M cash & investments

Quarterly Free Cash Flow

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

CubeSmart is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
24.5%
Thin — 24.5% gross margin
Operating Margin
40.2%
Excellent — 40.2% operating margin
ROCE
1.9%
Weak — 1.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+5.0%
Slow sales growth (5.0% YoY)
EPS YoY
-17.0%
Earnings shrinking (-17.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
187%
Turns 187% of profit into real cash
FCF Margin
51.4%
Converts sales into free cash efficiently (51.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
1.30
Elevated debt (1.30)
Interest Cover
7.40x
Adequate interest coverage (7.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
29.5x
Growth-priced — P/E 29.5

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+2.8
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield
5.15%
Healthy income — 5.15% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
+1.9%
Dividend flat

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