CubeSmart (CUBE)
Quantitative Summary
DeterministicAt 28.0x earnings — a 41% discount to the sector average of 47.4x — CUBE is in the lower valuation range. Financial health is average: Piotroski 6/9, Altman Z 1.3.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedThe fundamental economics of CubeSmart present a distinct divergence between operational profitability and capital efficiency. While the company demonstrates robust margin compression resistance with a net margin of 29.7% and a high gross margin of 68.7%, this is driven primarily by an equity multiplier of 2.39x rather than organic asset growth or superior turnover, which sits at just 0.17x. This leverage-heavy structure supports a DuPont ROE of 12.0%, yet the capital allocation quality is compromised by a negative spread where the return on invested capital of 6.0% falls short of the weighted average cost of capital at 9.6%. Although the Piotroski F-Score of 6/9 and Beneish M-Score of -2.84 suggest stable fundamentals with low earnings manipulation risk, an Altman Z-Score of 1.2 signals elevated financial distress relative to historical norms for the sector.
Valuation metrics indicate a significant premium over peers despite subdued growth expectations. The current P/E multiple of 26.6x trades at less than one-third of the sector average of 84.5x, suggesting the market is pricing in structural headwinds rather than immediate undervaluation relative to historical means. This discount aligns with a negative Fama-French alpha of -3.00% annually and a weak ROIC-WACC spread that fails to justify the equity premium demanded by investors. While the value factor (HML) shows a positive tilt at 0.227, reflecting its classification as a value stock relative to growth peers, the underlying capital efficiency issues prevent it from capturing full profitability factor benefits despite an RMW score of 0.123 indicating robust earnings quality within that specific dimension.
Recent insider activity over the last ninety days reveals net selling totaling $949,420, adding a layer of caution to the risk/reward profile even as value characteristics remain intact. The combination of high leverage driving returns, negative capital spread, and active insider distribution creates an environment where the stock's attractiveness is heavily dependent on future improvements in asset turnover or a reduction in equity multipliers rather than margin expansion alone.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
Valuation Context
Currently trading 4% below its 5-year average P/E of 27.7x.
Price Chart with Moving Averages
Technical Setup
AI GeneratedCubeSmart is currently trading at $39.63, a position that requires contextual analysis against its moving average envelope to assess potential mean-reversion dynamics. Without the specific upper and lower boundary values of the standard deviation bands or the precise location of the Simple Moving Average relative to this price point, it remains impossible to determine whether the security is technically oversold near the lower band or overextended approaching the upper limit. The current valuation sits in isolation from these critical reference lines, meaning any assessment of how far the stock has deviated from its statistical mean cannot be accurately quantified based solely on the provided data. In a typical relative-value framework, proximity to an envelope boundary often signals increased probability for a price correction toward the average line, while trading near the center suggests consolidation or continued trending behavior. Since the distance between $39.63 and the implied support or resistance levels defined by the SMA bands is unknown, the likelihood of an imminent bounce or pullback cannot be factually established. The absence of these comparative metrics prevents a definitive conclusion on whether the current price represents a statistical anomaly likely to revert or a sustainable equilibrium point within the real estate sector's broader technical structure.
Quant Health Deep Dive
Profitability & Value Creation
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Insider Activity (Last 90 Days)
Open-market buys vs sells by company insiders. Source: yfinance.
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-04-01 | $0.5300 | 0.0% |
| 2026-01-02 | $0.5300 | +1.9% |
| 2025-10-01 | $0.5200 | 0.0% |
| 2025-07-01 | $0.5200 | 0.0% |
| 2025-04-01 | $0.5200 | 0.0% |
| 2025-01-02 | $0.5200 | +2.0% |
| 2024-10-01 | $0.5100 | 0.0% |
| 2024-07-01 | $0.5100 | 0.0% |
| 2024-03-28 | $0.5100 | 0.0% |
| 2023-12-29 | $0.5100 | +4.1% |
| 2023-09-29 | $0.4900 | 0.0% |
| 2023-06-30 | $0.4900 | 0.0% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like VNQ or MDYV, the fund manager is mechanically forced to buy or sell CUBE shares regardless of CubeSmart's individual fundamentals. We estimate $872M of passive capital is structurally linked to CUBE through 8 tracked ETFs. Passive flows have a limited but growing influence on CUBE's daily trading dynamics.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in CubeSmart to visualize passive redemption contagion across ETFs and collateral stocks.
If CubeSmart (CUBE) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Vanguard Real Estate II Index Fund Institutional Plus Shares (VRTPX) as the most exposed collateral stock, sharing 1 ETFs with CUBE. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 12 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
CUBE Ownership Dynamics
Passive funds hold 1 in every 10 CUBE shares, reducing daily market volatility.
CubeSmart (CUBE) exerts measurable gravity on the passive index market, currently representing 0.5% of the Vanguard Real Estate Index Fund ETF Shares (VNQ) and 0.3% of the MDYV (MDYV). Across 12 tracked ETFs, approximately 23M shares (10.1% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.
ETFs with Highest CUBE Exposure
Float lock-up computed from 12 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
CUBE Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for CubeSmart over the past year sits near $39.55 (10% of 252-day volume). The current price of $39.43 sits 0.3% below the POC — suggesting potential mean-reversion upside if institutional demand reasserts at this level.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-12 | 154 | $40.82 | $6,286.28 |
| 2026-04-08 | 34 | $37.25 | $1,266.5 |
| 2026-03-26 | 8,294 | $36.20 | $300,242.8 |
| 2026-03-16 | 55 | $38.65 | $2,125.75 |
| 2026-01-20 | 98 | $39.61 | $3,881.78 |
| 2026-01-08 | 91 | $36.33 | $3,306.03 |
| 2026-01-07 | 1,060 | $36.44 | $38,626.4 |
| 2026-01-05 | 61 | $35.40 | $2,159.4 |
| 2025-12-23 | 10,311 | $35.74 | $368,515.14 |
| 2025-12-17 | 1,820 | $35.79 | $65,137.8 |
| 2025-12-16 | 48,935 | $36.55 | $1.8M |
| 2025-12-15 | 47,677 | $36.52 | $1.7M |
| 2025-11-28 | 347 | $37.35 | $12,960.45 |
| 2025-11-20 | 960 | $35.86 | $34,425.6 |
| 2025-11-17 | 675 | $36.62 | $24,718.5 |
| 2025-11-03 | 1,252 | $37.67 | $47,162.84 |
| 2025-10-28 | 5 | $41.68 | $208.4 |
| 2025-10-15 | 9 | $40.90 | $368.1 |
| 2025-10-14 | 5,239 | $40.25 | $210,869.75 |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| EXR | 0.897 | 0.903 | High co-movement |
| PSA | 0.843 | 0.813 | High co-movement |
| VRTPX | 0.769 | 0.693 | High co-movement |
| AVB | 0.621 | 0.499 | Moderate |
| EGP | 0.617 | 0.515 | Moderate |
| KIM | 0.617 | 0.616 | Moderate |
| MAA | 0.587 | 0.466 | Moderate |
| PLD | 0.582 | 0.505 | Moderate |
| EQR | 0.568 | 0.438 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare CUBE to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.