CubeSmart Stock Drops 0.4% in Response to “Miss” FY23 Outlook Suggestion From Hedgeye Analyst
January 12, 2023
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Cubesmart Intrinsic Value – CUBESMART ($NYSE:CUBE): The company is one of the largest self-storage companies in the United States and offers storage solutions for residential, business and government customers. On Tuesday, Hedgeye analyst Rob Simone released a report suggesting that CubeSmart could “miss” its FY23 outlook when they present their Q4 results. This was based on their comparison to Extra Space Storage’s miss on FY22 and their Q3 results. As a result, CubeSmart’s stock dropped by 0.4%. Investors responded to this news with caution, sending CubeSmart’s stock down. While CubeSmart has yet to comment on the report, the news has caused some investors to be wary of the company’s future outlook.
In spite of this news, CubeSmart has had a strong year so far in terms of revenue growth and occupancy levels. This suggests that CubeSmart could be well-positioned to meet its FY23 outlook, despite the new short idea from Hedgeye. Overall, CubeSmart’s stock dropping by 0.4% in response to the Hedgeye analyst’s suggestion is an understandable reaction from investors. While it remains to be seen how CubeSmart will fare when they present their Q4 results, investors should continue to monitor the company’s progress and make their own decisions based on their own research.
Share Price
The stock opened at $40.1 and closed at the same price, down by 0.5% from its previous closing price of 40.3. So far, news coverage of the stock drop has been mostly negative, with analysts expressing their concerns about the future of the company. Some have even suggested that the stock could drop even further in response to this news.
However, some investors remain optimistic about the company’s prospects for the future. They believe that the “miss” FY23 outlook may be a temporary setback, and that the company still has potential for growth. They point to CUBESMART‘s strong financials and market share as reasons for optimism. Meanwhile, CUBESMART has yet to comment on the news. It remains to be seen how they will respond to the “miss” FY23 outlook, and how it will affect their stock price in the long run. In the meantime, investors will be closely monitoring the situation to see if this recent stock drop is an anomaly or a sign of things to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cubesmart. More…
| Total Revenues | Net Income | Net Margin |
| 970.55 | 254.75 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cubesmart. More…
| Operations | Investing | Financing |
| 516.13 | -1.85k | 1.41k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cubesmart. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.37k | 3.45k | 12.7 |
Key Ratios Snapshot
Some of the financial key ratios for Cubesmart are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 33.2% |
| FCF Margin | ROE | ROA |
| – | – | – |
VI Analysis – Cubesmart Intrinsic Value Calculator
CUBESMART is an attractive stock for investors looking for long-term growth potential. The company’s fundamentals can be quickly assessed using the VI app, which simplifies data analysis. According to the app, CUBESMART’s intrinsic value is approximately $48.1, but the current trading price is $40.1, indicating that the stock is undervalued by 17%. This indicates that there is ample opportunity for long-term investors to benefit from the current market pricing of the company. The company’s revenue has grown steadily over the last few years, and CUBESMART’s balance sheet is relatively healthy. The company has a low debt-to-equity ratio, solid cash flow position, and high return on equity. All of these indicators point to a strong long-term outlook for the company. Furthermore, the company’s management team is experienced and well-regarded in the industry, which further supports the company’s long-term prospects. Overall, CUBESMART is an attractive investment opportunity for long-term investors. The current market pricing of the stock suggests that there is potential for significant upside in the future. The company’s fundamentals suggest that it has a strong potential for long-term growth, and its experienced management team provides further assurance that it can continue to deliver value for shareholders in the future. More…
VI Peers
CubeSmart is in the business of self-storage. Its competitors are LXP Industrial Trust, Terreno Realty Corp, Big Yellow Group PLC.
– LXP Industrial Trust ($NYSE:LXP)
LXP Industrial Trust is a publicly traded real estate investment trust that owns and operates a portfolio of light industrial properties in the United States. The company’s portfolio consists of approximately 26 million square feet of industrial space located in 21 states. LXP Industrial Trust is headquartered in Dallas, Texas.
– Terreno Realty Corp ($NYSE:TRNO)
Terreno Realty Corp is a real estate investment trust that primarily acquires, owns, and operates industrial properties in key logistics markets in the United States. As of December 31, 2020, the company’s portfolio consisted of 106 industrial properties totaling approximately 15.4 million square feet of leasable space.
– Big Yellow Group PLC ($LSE:BYG)
Big Yellow Group PLC is a United Kingdom-based self-storage company. The Company’s self-storage is a form of storage in which goods are stored in a rented space that the customer can access. The Company operates a portfolio of self-storage centres across the United Kingdom.
Summary
CubeSmart (CUB) has seen its stock price drop 0.4% in response to the recent forecast from Hedgeye analyst, suggesting that the company’s FY23 outlook may be weaker than expected. Investing analysis suggests that despite the short-term decline, CubeSmart remains a strong investment option due to its attractive portfolio of self-storage facilities and strategic acquisitions. The company has also implemented cost-saving measures to ensure a more profitable future. Investors should continue to monitor the company’s performance, but overall, CubeSmart is a company that should be considered for long-term investments.
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