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CubeSmart Financial Strength

: 4 (As of Jun. 2022)
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CubeSmart has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

CubeSmart's Interest Coverage for the quarter that ended in Jun. 2022 was 3.57. CubeSmart's debt to revenue ratio for the quarter that ended in Jun. 2022 was 3.19. As of today, CubeSmart's Altman Z-Score is 1.75.


Competitive Comparison

For the REIT - Industrial subindustry, CubeSmart's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the REITs industry and Real Estate sector, CubeSmart's Financial Strength distribution charts can be found below:

* The bar in red indicates where CubeSmart's Financial Strength falls into.



CubeSmart Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

CubeSmart's Interest Expense for the months ended in Jun. 2022 was $-23.1 Mil. Its Operating Income for the months ended in Jun. 2022 was $82.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $3,001.4 Mil.

CubeSmart's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*82.421/-23.055
=3.57

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

CubeSmart's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(168.9 + 3001.356) / 994.656
=3.19

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

CubeSmart has a Z-score of 1.75, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.75 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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  (NYSE:CUBE) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

CubeSmart has the Financial Strength Rank of 4.


CubeSmart Financial Strength Related Terms

Thank you for viewing the detailed overview of CubeSmart's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


CubeSmart Business Description

CubeSmart logo
Traded in Other Exchanges
Address
5 Old Lancaster Road, Malvern, PA, USA, 19355
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. Most 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. CubeSmart derives nearly all of its revenue from rental income from tenants utilizing its storage facilities.
Executives
Lynch Jair K director 5 OLD LANCASTER RD MALVERN PA 19355
Keaton Joel D officer: Sr VP of Operations 5 OLD LANCASTER ROAD MALVERN PA 19355
Dowling Dororthy director 5 OLD LANCASTER ROAD MALVERN PA 19355
Perry Jonathan L officer: SVP and CIO 5 OLD LANCASTER ROAD MALVERN PA 19355
Ratnersalzberg Deborah director 301 WATER ST SE SUITE 201 WASHINGTON DC 20003
Fain John W director 1000 SEMMES AVE RICHMOND VA 23224
Rogatz Jeffrey F director
Blatz Robert G officer: SR VP of Operations 29399 US HWY STE 320 CLEARWATER FL 33761
Bussani Piero director 460 EAST SWEDESFORD ROAD SUITE 3000 WAYNE PA 19087
Remondi John F director 300 CONTINENTAL DRIVE NEWARK DE 19713
Foster Jeffrey P officer: Sr. VP - Chief Legal Officer 460 EAST SWEDESFORD ROAD SUITE 3000 WAYNE PA 19087
Amsdell & Amsdell other: Member of 13d group owning 10% 20445 EMERALD PARKWAY DRIVE SW SUITE 220 CLEVELAND OH 44135
Amsdell Holdings I Inc. other: Member of 13d group owning 10% 20445 EMERALD PARKWAY DRIVE SW SUITE 220 CLEVELAND OH 44135
Amsdell Real Estate Trust Dated 10/3/89 other: Member of 13d group owning 10% 20445 EMERALD PARKWAY DRIVE SW SUITE 220 CLEVELAND OH 44135
Andrews Charles Elliott director C/O H&R BLOCK ONE H&R BLOCK WAY KANSAS CITY MO 64105

CubeSmart Headlines

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