CUBE's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 466.63 -- higher than 92.16% of US-listed equities with positive expected earnings growth.
Of note is the ratio of CubeSmart's sales and general administrative expense to its total operating expenses; just 9.63% of US stocks have a lower such ratio.
For CUBE, its debt to operating expenses ratio is greater than that reported by 90.14% of US equities we're observing.
Stocks with similar financial metrics, market capitalization, and price volatility to CubeSmart are ACC, IRET, SBRA, AIV, and SITC.
CUBE's SEC filings can be seen here. And to visit CubeSmart's official web site, go to www.cubesmart.com.
CubeSmart engages in ownership, operation, acquisition and development of self-storage facilities. The company was founded in July 2004 and is based in Malvern, Pennsylvania.
CUBE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for CubeSmart with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that CubeSmart ranked in the 62th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 103%. The most interesting components of our discounted cash flow analysis for CubeSmart ended up being:
CubeSmart's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 21.63% of tickers in our DCF set.
CubeSmart's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 12.11% of stocks in its sector (Real Estate).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of CubeSmart? See ACC, SKT, WSR, HST, and IRM.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of CubeSmart and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
Participants on today's call include Chris Marr, President and Chief Executive Officer; and Tim Martin, Chief Financial Officer. In addition to our earnings release, which was issued yesterday evening, supplemental operating and financial data is available under the Investor Relations section of the company's website at www.cubesmart.com.