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Safestay

AIM:SSTY
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SSTY
AIM
£21M
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

Safestay plc operates and develops traveller accommodation under the Safestay brand in the United Kingdom. The last earnings update was 39 days ago. More info.


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SSTY Share Price and Events
7 Day Returns
0%
AIM:SSTY
3.2%
GB Hospitality
1.3%
GB Market
1 Year Returns
-36.6%
AIM:SSTY
-7.7%
GB Hospitality
-5%
GB Market
SSTY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Safestay (SSTY) 0% -5.9% -15.8% -36.6% -41.8% -46.4%
GB Hospitality 3.2% 0.6% -1.6% -7.7% 11.1% 30.9%
GB Market 1.3% -1.6% 1.9% -5% 15.8% 2.5%
1 Year Return vs Industry and Market
  • SSTY underperformed the Hospitality industry which returned -7.7% over the past year.
  • SSTY underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5% over the past year.
Price Volatility
SSTY
Industry
5yr Volatility vs Market

SSTY Value

 Is Safestay undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Safestay to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Safestay.

AIM:SSTY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:SSTY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.937 (1 + (1- 19%) (190.02%))
1.924
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.924 * 6.65%)
14.02%

Discounted Cash Flow Calculation for AIM:SSTY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Safestay is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:SSTY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 14.02%)
2019 2.70 Analyst x1 2.37
2020 2.90 Analyst x1 2.23
2021 4.20 Analyst x1 2.83
2022 5.29 Est @ 26.02% 3.13
2023 6.28 Est @ 18.58% 3.26
2024 7.12 Est @ 13.38% 3.24
2025 7.81 Est @ 9.73% 3.12
2026 8.37 Est @ 7.18% 2.93
2027 8.82 Est @ 5.39% 2.71
2028 9.19 Est @ 4.14% 2.47
Present value of next 10 years cash flows £28.29
AIM:SSTY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £9.19 × (1 + 1.23%) ÷ (14.02% – 1.23%)
£72.68
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £72.68 ÷ (1 + 14.02%)10
£19.57
AIM:SSTY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £28.29 + £19.57
£47.86
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £47.86 / 64.68
£0.74
AIM:SSTY Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.74
Current discount Discount to share price of £0.32
= -1 x (£0.32 - £0.74) / £0.74
56.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Safestay is available for.
Intrinsic value
>50%
Share price is £0.32 vs Future cash flow value of £0.73989
Current Discount Checks
For Safestay to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Safestay's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Safestay's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Safestay's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Safestay's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:SSTY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £-0.03
AIM:SSTY Share Price ** AIM (2019-05-17) in GBP £0.32
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 17.95x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 788 Publicly-Listed Companies 16.24x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Safestay.

AIM:SSTY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:SSTY Share Price ÷ EPS (both in GBP)

= 0.32 ÷ -0.03

-12.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Safestay is loss making, we can't compare its value to the GB Hospitality industry average.
  • Safestay is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Safestay's expected growth come at a high price?
Raw Data
AIM:SSTY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -12.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.06x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Safestay, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Safestay's assets?
Raw Data
AIM:SSTY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.43
AIM:SSTY Share Price * AIM (2019-05-17) in GBP £0.32
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.39x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.51x
AIM:SSTY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:SSTY Share Price ÷ Book Value per Share (both in GBP)

= 0.32 ÷ 0.43

0.74x

* Primary Listing of Safestay.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Safestay is good value based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess Safestay's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Safestay has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SSTY Future Performance

 How is Safestay expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.9%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Safestay expected to grow at an attractive rate?
  • Unable to compare Safestay's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Safestay's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
  • Safestay's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:SSTY Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:SSTY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 9.9%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:SSTY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:SSTY Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 20 1
2020-12-31 19 1
2019-12-31 17 1
AIM:SSTY Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 15 2 -1
2018-09-30 14 2 -1
2018-06-30 13 2 -1
2018-03-31 12 2 -1
2017-12-31 11 2 -1
2017-09-30 9 2 -1
2017-06-30 8 2 0
2017-03-31 8 2 0
2016-12-31 7 2 -1
2016-09-30 7 2 -1
2016-06-30 6 1 -1
2016-03-31 5 1 -1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Safestay is high growth as no earnings estimate data is available.
  • Safestay's revenue is expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:SSTY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Safestay Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SSTY Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
AIM:SSTY Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 -0.03
2018-09-30 -0.03
2018-06-30 -0.04
2018-03-31 -0.03
2017-12-31 -0.03
2017-09-30 -0.02
2017-06-30 -0.01
2017-03-31 -0.01
2016-12-31 -0.01
2016-09-30 -0.02
2016-06-30 -0.02
2016-03-31 -0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Safestay will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Safestay's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Safestay has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SSTY Past Performance

  How has Safestay performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Safestay's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Safestay does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Safestay's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Safestay's 1-year growth to the GB Hospitality industry average as it is not currently profitable.
Earnings and Revenue History
Safestay's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Safestay Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SSTY Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 14.62 -0.91 10.69
2018-09-30 13.81 -1.10 9.28
2018-06-30 13.00 -1.29 8.37
2018-03-31 11.77 -1.08 7.11
2017-12-31 10.55 -0.87 5.84
2017-09-30 9.36 -0.63 5.11
2017-06-30 8.18 -0.39 4.88
2017-03-31 7.80 -0.45 4.54
2016-12-31 7.41 -0.51 4.20
2016-09-30 6.66 -0.68 3.79
2016-06-30 5.91 -0.85 3.38
2016-03-31 4.97 -0.72 2.83
2015-12-31 4.02 -0.60 2.29
2015-06-30 3.01 -0.23 1.60
2014-12-31 2.11 0.13 0.84
2013-12-31 1.93 0.31 1.14
2012-12-31 0.70 -0.27 0.67

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Safestay has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Safestay used its assets less efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • It is difficult to establish if Safestay improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Safestay's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Safestay has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SSTY Health

 How is Safestay's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Safestay's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Safestay is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Safestay's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Safestay's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Safestay Company Filings, last reported 4 months ago.

AIM:SSTY Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 27.94 39.33 9.86
2018-09-30 27.94 39.33 9.86
2018-06-30 18.22 39.29 2.96
2018-03-31 18.22 39.29 2.96
2017-12-31 19.00 39.39 4.50
2017-09-30 19.00 39.39 4.50
2017-06-30 19.48 39.34 4.20
2017-03-31 19.48 39.34 4.20
2016-12-31 19.84 27.62 0.75
2016-09-30 19.84 27.62 0.75
2016-06-30 19.85 28.53 1.40
2016-03-31 19.85 28.53 1.40
2015-12-31 16.45 28.38 1.06
2015-06-30 8.43 19.40 0.84
2014-12-31 8.70 9.15 3.31
2013-12-31 8.11 4.46 0.87
2012-12-31 7.56 4.54 0.45
  • Safestay's level of debt (140.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (55.1% vs 140.8% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Safestay has sufficient cash runway for more than 3 years based on current free cash flow.
  • Safestay has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -2.6% each year.
X
Financial health checks
We assess Safestay's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Safestay has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SSTY Dividends

 What is Safestay's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Safestay dividends.
If you bought £2,000 of Safestay shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Safestay's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Safestay's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:SSTY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:SSTY Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
AIM:SSTY Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2016-09-12 0.000 0.000
2016-04-11 0.000 0.000
2015-05-05 0.003 0.485
2015-04-13 0.003 0.423

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Safestay has not reported any payouts.
  • Unable to verify if Safestay's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Safestay's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Safestay has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Safestay's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Safestay afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Safestay has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SSTY Management

 What is the CEO of Safestay's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • Safestay has no CEO, or we have no data on them.
Management Team

Larry Lipman

TITLE
Group Chairman
COMPENSATION
£46K
AGE
61

Herve Deligny

TITLE
CFO , Company Secretary & Director
AGE
45
TENURE
0.8 yrs

Nuno Sacramento

TITLE
COO & Director
AGE
50
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Safestay board of directors in years:

2
Average Tenure
55
Average Age
  • The average tenure for the Safestay board of directors is less than 3 years, this suggests a new board.
Board of Directors

Larry Lipman

TITLE
Group Chairman
COMPENSATION
£46K
AGE
61
TENURE
5.3 yrs

Herve Deligny

TITLE
CFO , Company Secretary & Director
AGE
45
TENURE
0.8 yrs

Nuno Sacramento

TITLE
COO & Director
AGE
50
TENURE
2 yrs

Stephen Moss

TITLE
Non-Executive Director
COMPENSATION
£24K
AGE
65
TENURE
5.2 yrs

Michael Hirst

TITLE
Independent Non-Executive Director
AGE
74
TENURE
2 yrs

Anson Chan

TITLE
Non-Executive Director
AGE
55
TENURE
1.4 yrs

Paul Cummins

TITLE
Alternate Non-Executive Director
AGE
52
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Safestay's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Safestay has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SSTY News

Simply Wall St News

Did Changing Sentiment Drive Safestay's (LON:SSTY) Share Price Down By 46%?

We regret to report that long term Safestay plc (LON:SSTY) shareholders have had that experience, with the share price dropping 46% in three years, versus a market return of about 31%. … Over three years, Safestay grew revenue at 39% per year. … The share price drop of 19% per year over three years would be considered disappointing by many, so you might argue the company is getting little credit for its impressive revenue growth.

Simply Wall St -

Breaking Down Safestay plc's (LON:SSTY) Ownership Structure

Today, I will be analyzing Safestay plc’s (AIM:SSTY) recent ownership structure, an important but not-so-popular subject among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

Is Safestay plc (LON:SSTY) A Financially Sound Company?

With this increase in debt, SSTY currently has UK£4.50M remaining in cash and short-term investments , ready to deploy into the business. … On top of this, SSTY has generated UK£1.86M in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 4.73%, signalling that SSTY’s operating cash is not sufficient to cover its debt. … Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.Next Steps: At its current level of cash flow coverage, SSTY has room for improvement to better cushion for events which may require debt repayment.

Simply Wall St -

Was Safestay plc's (LON:SSTY) Earnings Decline Part Of A Broader Industry Downturn?

For the most up-to-date info, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … AIM:SSTY Income Statement Apr 25th 18 We can further analyze Safestay's loss by looking at what the industry has been experiencing over the past few years. … This means any recent headwind the industry is experiencing, it’s hitting Safestay harder than its peers.What does this mean?

Simply Wall St -

What Should Investors Know About Safestay plc's (LON:SSTY) Return On Capital?

Check out our latest analysis for Safestay Calculating Return On Capital Employed for SSTY As an investor you have many alternative companies to choose from, which means there is an opportunity cost in any investment you make in the form of a foregone investment in another company. … I have calculated Safestay’s ROCE for you below: ROCE Calculation for SSTY Return on Capital Employed (ROCE) = Earnings Before Tax (EBT) ÷ (Capital Employed) Capital Employed = (Total Assets - Current Liabilities) ∴ ROCE = UK£13.00K ÷ (UK£60.55M - UK£1.83M) = 0.022% As you can see, SSTY added £0 for every £100 you invested over the previous twelve months. … Over this time, earnings have fallen from UK£308.00K to UK£13.00K whilst capital employed has also increased due to a rise in total assets employed , which means the company's ROCE has shrunk as a result of falling earnings and simultaneous increases in capital requirements.

Simply Wall St -

What Does Safestay plc's (LON:SSTY) Share Price Indicate?

This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. … Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SSTY.

Simply Wall St -

Does Safestay plc (LON:SSTY) Fall With The Market?

A market capitalisation of UK£16.43M puts SSTY in the category of small-cap stocks, which tends to possess higher beta than larger companies. … This is an interesting conclusion, since both SSTY’s size and industry indicates the stock should have a higher beta than it currently has. … As a result, this aspect of SSTY indicates a higher beta than a similar size company with a lower portion of fixed assets on their balance sheet.

Simply Wall St -

What does Safestay plc's (LON:SSTY) Balance Sheet Tell Us About Its Future?

At this current level of debt, SSTY's cash and short-term investments stands at UK£737.00K for investing into the business. … Additionally, SSTY has generated UK£2.31M in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 8.34%, signalling that SSTY’s debt is not appropriately covered by operating cash. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: SSTY’s high debt levels is not met with high cash flow coverage.

Simply Wall St -

What You Must Know About Safestay plc's (LON:SSTY) Major Investors

View our latest analysis for Safestay AIM:SSTY Ownership_summary Feb 13th 18 Institutional Ownership SSTY's 71.29% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade. … Although SSTY has a high institutional ownership, such stock moves, in the short-term, are more commonly linked to a particular type of active institutional investors – hedge funds. … Private Company Ownership Potential investors in SSTY should also look at another important group of investors: private companies, with a stake of 19.82%, who are primarily invested because of strategic and capital gain interests.

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Did Safestay plc's (LON:SSTY) Earnings Growth Outperform The Industry?

Investors may find my commentary, albeit very high-level and brief, on Safestay plc (AIM:SSTY) useful as an attempt to give more color around how Safestay is currently performing. … For Safestay, its most recent bottom-line (trailing twelve month) is -£0.4M, which, against last year’s figure, has become less negative. … The intrinsic value infographic in our free research report helps visualize whether SSTY is currently mispriced by the market?

Simply Wall St -

SSTY Company Info

Description

Safestay plc operates and develops traveller accommodation under the Safestay brand in the United Kingdom. It provides overnight hostel accommodation services and owns properties. The company serves families, school groups, young adults, backpackers, and business travelers. Safestay plc was incorporated in 2014 and is based in London, the United Kingdom.

Details
Name: Safestay plc
SSTY
Exchange: AIM
Founded: 2014
£20,697,284
64,679,014
Website: http://www.safestay.com
Address: Safestay plc
1a Kingsley Way,
London,
Greater London, N2 0FW,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM SSTY Ordinary Shares London Stock Exchange AIM Market GB GBP 02. May 2014
Number of employees
Current staff
Staff numbers
153
Safestay employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/19 22:33
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2019/04/10
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.