What does operating margin mean?

The profit left from core operations for every dollar of sales, before interest and taxes.

How do you interpret operating margin?

Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.

How does operating margin compare across companies?

Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.

CubeSmart CUBE Operating margin

Discontinued — last reported Q3 '18

Operating margin at other companies

Extra Space StorageEXR

40.8%-1.2pp

PrologisPLD

47.5%-1.0pp

Kimco RealtyKIM

36.9%+4.1pp

Equity Lifestyle PropertiesELS

25.6%+1.0pp

Lineage, Inc.LINE

3%+1.7pp

U-Haul HoldingUHAL

——

Other financials

Income statement

See full

Revenue$281.9M+3.3%

Gross profit$191.9M+0.9%

Net income$82.8M-6.8%

EPS (diluted)$0.36-7.7%

Balance sheet

See full

Cash & equivalents$7.3M-32.5%

Total debt$65.5M-0.2%

Total equity$2.6B-6.9%

Total assets$6.6B-2.1%

Cash flow

See full

Operating cash flow$148.8M+1.7%

Valuation

See full

Market cap$9.2B-14.5%

Enterprise value$9.26B-14.4%

P/E28.3×+0.4×

P/S8.1×-1.9×

Profitability

See full

Gross margin68.3%-1.6pp

Net margin28.7%-7.1pp

Returns & leverage

See full

Return on equity11.8%-1.9pp

Debt / equity0×0.0×

Where this comes from

Calculated from CubeSmart’s reported figures.

operating income/total revenue=37.8%

Based on trailing twelve months.

The official record: CubeSmart’s 10-Q, filed October 26, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does operating margin mean?: The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?: Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?: Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.