CubeSmartCUBE -0.33%88 Operating Margin % is 40.16% as of Mar. 2026, which is 10% above its 10-year median of 36.42. GuruFocus rates CUBE with a GF Score™ of 88/100 and a GF Value™ of $44.36 (Fairly Valued). The stock has 5 warning signs investors should review. Among 750 REITs companies, CubeSmart ranks worse than 66.8% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. CubeSmart's Operating Income for the
three
months ended in Mar. 2026 was $113 Mil. CubeSmart's Revenue for the
three
months ended in Mar. 2026 was $282 Mil. Therefore, CubeSmart's Operating Margin % for the quarter that ended in Mar. 2026 was 40.16%.
Good Sign:
CubeSmart operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for CubeSmart's Operating Margin % or its related term are showing as below:
CUBE'
s Operating Margin % Range Over the Past 10 Years
Min: 29.31 Med: 36.42 Max: 47.34
Current: 39.51
CUBE's Operating Margin % is ranked worse than 66.8% of 750
companies
in the REITs industry
Industry Median: 52.67
vs CUBE: 39.51
CubeSmart's 5-Year Average Operating Margin % Growth Rate was 3.80% per year.
CubeSmart's Operating Income for the
three
months ended in Mar. 2026 was $113 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $447 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
CubeSmart Operating Margin % Related Terms
CubeSmart Operating Margin % Historical Data
* Premium members only.
The historical data trend for CubeSmart's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CUBE vs FR, REXR, LINE: Operating Margin % Comparison
For the REIT - Industrial subindustry, CubeSmart's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CubeSmart Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, CubeSmart's Operating Margin % distribution charts can be found below:
* The bar in red indicates where CubeSmart's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
CubeSmart's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CubeSmart (CUBE) has a Operating Margin % of 40.16% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on CubeSmart and its competitors. This is 10% above median its historical median of 36.42. Over the past decade, CubeSmart's Operating Margin % has ranged from 29.31 to 47.34. According to the industry distribution chart, CubeSmart ranks #501 out of 750 companies in the REITs industry, placing it in the top 66.8%.
Is CubeSmart's Operating Margin % too high?
CubeSmart's current Operating Margin % of 40.16% is 10% above median its 10-year median of 36.42. Over the past 10 years, this metric has ranged from a low of 29.31 to a high of 47.34. The REITs industry median Operating Margin % is 52.67. CubeSmart's value of 40.16% is 23.8% below this industry median. Based on the distribution chart, CubeSmart ranks #501 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, CubeSmart has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CubeSmart's Operating Margin % compare to FR and REXR?
According to the REITs industry distribution chart, CubeSmart ranks #501 out of 750 companies for Operating Margin %. This places CubeSmart in the lower half of its industry. The industry median Operating Margin % is 52.67. CubeSmart's value of 40.16% is 23.8% below this benchmark. Historically, CubeSmart's own Operating Margin % has ranged from 29.31 to 47.34 over the past decade. While the company's 10-year median is 36.42 vs. the industry median of 52.67, CubeSmart has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a REITs company?
The median Operating Margin % among REITs companies is 52.67, based on 750 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CubeSmart's current Operating Margin % of 40.16% is 23.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on CubeSmart and its competitors. For the REITs industry, the median Operating Margin % is 52.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CubeSmart's current Operating Margin % is 40.16%, which is 10% above median its own 10-year median of 36.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CubeSmart stock overvalued right now?
Based on GuruFocus' analysis, CubeSmart (CUBE) is currently considered Fairly Valued. The stock's GF Value™ is $44.36, compared to a current price of $40.72 — trading 8.2% below its estimated fair value. The current Operating Margin % is 40.16%, which is 10% above median its 10-year median of 36.42 and 23.8% below the REITs industry median of 52.67. CubeSmart's overall GF Score™ is 88/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For CubeSmart (CUBE), the current Operating Margin % is 40.16% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CubeSmart (CUBE) Overvalued in 2026?
Based on GuruFocus' analysis, CubeSmart stock appears to be undervalued.
The current stock price of $40.72 is trading 8.2% below its estimated GF Value™ of $44.36.
GuruFocus considers CubeSmart to be Fairly Valued.
Key valuation signals for CUBE:
Operating Margin %: 40.16% (10% above median its 10-year median of 36.42)
GF Value™: $44.36 vs. price of $40.72 (8.2% below fair value)
Industry Position: 23.8% below the REITs median (#501 of 750)
No single metric tells the full story. See the CUBE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CubeSmart is a real estate investment trust that acquires, owns, and manages self-storage facilities throughout the United States. The company's real estate portfolio is composed of buildings with numerous enclosed storage areas for both residential and commercial customers to rent mainly on a month-by-month basis. Majority of CubeSmart's facilities are located in Florida, Texas, California, New York, and Illinois. Cumulatively, these states account for both the majority of the square footage in the company's real estate portfolio and the majority of its revenue. The company derives nearly all of its revenue from rental income from tenants utilizing its storage facilities.
88GF Score
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