LSE:BYG

Stock Analysis Report

Executive Summary

Big Yellow is the UK's brand leader in self storage.

Rewards

Trading at 8.3% below its fair value

Revenue is forecast to grow 4.78% per year

Earnings grew by 38.3% over the past year

Pays a high and reliable dividend of 3.49%

Risk Analysis

Earnings are forecast to decline by an average of -10.2% per year for the next 3 years

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Big Yellow Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BYG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

BYG

-4.2%

GB REITs

-2.2%

GB Market


1 Year Return

-6.3%

BYG

-24.5%

GB REITs

-25.9%

GB Market

Return vs Industry: BYG exceeded the UK REITs industry which returned -24.4% over the past year.

Return vs Market: BYG exceeded the UK Market which returned -25.9% over the past year.


Shareholder returns

BYGIndustryMarket
7 Day1.0%-4.2%-2.2%
30 Day-13.1%-24.9%-20.3%
90 Day-18.7%-31.9%-29.5%
1 Year-3.3%-6.3%-21.6%-24.5%-22.2%-25.9%
3 Year41.5%27.8%-12.0%-23.5%-16.1%-26.6%
5 Year60.3%35.1%-13.9%-30.0%-4.6%-26.1%

Price Volatility Vs. Market

How volatile is Big Yellow Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Big Yellow Group undervalued compared to its fair value and its price relative to the market?

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BYG (£9.53) is trading below our estimate of fair value (£10.39)

Significantly Below Fair Value: BYG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BYG is good value based on its PE Ratio (9.8x) compared to the REITs industry average (12.6x).

PE vs Market: BYG is good value based on its PE Ratio (9.8x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: BYG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BYG is overvalued based on its PB Ratio (1.3x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

How is Big Yellow Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BYG's earnings are forecast to decline over the next 3 years (-10.2% per year).

Earnings vs Market: BYG's earnings are forecast to decline over the next 3 years (-10.2% per year).

High Growth Earnings: BYG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BYG's revenue (4.8% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: BYG's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BYG's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Big Yellow Group performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BYG has a large one-off gain of £93.5M impacting its September 30 2019 financial results.

Growing Profit Margin: BYG's current net profit margins are higher than last year (95.8%).


Past Earnings Growth Analysis

Earnings Trend: BYG's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: BYG's earnings growth over the past year (38.3%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: BYG earnings growth over the past year (38.3%) exceeded the REITs industry -21.6%.


Return on Equity

High ROE: BYG's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is Big Yellow Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BYG has a high level of physical assets or inventory.

Debt Coverage by Assets: BYG's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: BYG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BYG has a sufficient allowance for bad loans.

Low Risk Liabilities: BYG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BYG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BYG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BYG has an appropriate level of bad loans.


Next Steps

Dividend

What is Big Yellow Group's current dividend yield, its reliability and sustainability?

3.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BYG's dividend (3.49%) is higher than the bottom 25% of dividend payers in the UK market (2.66%).

High Dividend: BYG's dividend (3.49%) is low compared to the top 25% of dividend payers in the UK market (7.42%).


Stability and Growth of Payments

Stable Dividend: BYG's dividends per share have been stable in the past 10 years.

Growing Dividend: BYG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75%), BYG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BYG's dividends in 3 years are forecast to be covered by earnings (80.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.8yrs

Average management tenure


CEO

Jim Gibson (58yo)

21.58s

Tenure

UK£1,182,482

Compensation

Mr. James Gibson Co-founded of Big Yellow Group PLC in September 1998 and has been its Chief Executive Officer and Executive Director since September 1998. Mr. Gibson was Finance Director of Heron Property ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.45M) is about average for companies of similar size in the UK market ($USD1.85M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Vetch
Executive Chairman of the Board16.08yrsUK£1.06m4.06% £64.2m
James Gibson
CEO & Director21.58yrsUK£1.18m1.51% £23.9m
John Trotman
CFO & Director12.58yrsUK£871.71k0.14% £2.2m
Adrian Lee
Operations Director & Director19.92yrsUK£863.11kno data
Anthony Chenery
Head of Marketing & E-Commerceno datano datano data
Cheryl Hathaway
Head of Human Resourcesno datano datano data
Stuart Grinnall
Head of IT4.17yrsno datano data
David Knight
Head of Facilitiesno datano datano data
Tom Wilcockson
Head of New Business Development & Director of International Franchiseno datano datano data
Nicola Crosby
Head of Store Operations4.75yrsno datano data

12.8yrs

Average Tenure

53yo

Average Age

Experienced Management: BYG's management team is seasoned and experienced (12.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Vetch
Executive Chairman of the Board16.08yrsUK£1.06m4.06% £64.2m
James Gibson
CEO & Director21.58yrsUK£1.18m1.51% £23.9m
John Trotman
CFO & Director12.58yrsUK£871.71k0.14% £2.2m
Adrian Lee
Operations Director & Director19.92yrsUK£863.11kno data
Georgina Harvey
Non-Executive Director6.75yrsUK£45.10k0.011% £176.3k
Stephen Johnson
Non-Executive Director9.58yrsUK£40.00k0.0060% £95.2k
Julia Hailes
Non-Executive Director0.083yrno datano data
Richard Cotton
Senior Independent Directorno dataUK£45.10k0.056% £879.0k
James Niblett
Non-Executive Director2.83yrsUK£45.10k0.0018% £28.6k
Anna Keay
Non-Executive Director2.08yrsUK£40.00kno data

9.6yrs

Average Tenure

56yo

Average Age

Experienced Board: BYG's board of directors are considered experienced (9.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.2%.


Top Shareholders

Company Information

Big Yellow Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Big Yellow Group Plc
  • Ticker: BYG
  • Exchange: LSE
  • Founded: 1998
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: UK£1.581b
  • Shares outstanding: 166.02m
  • Website: https://www.bigyellow.co.uk

Number of Employees


Location

  • Big Yellow Group Plc
  • Unit 2, The Deans
  • Bridge Road, Bagshot
  • Bagshot
  • East Lothian
  • GU19 5AT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BYGLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2000
B9YDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2000
BYLO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2000
BYGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2000
B9YBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFMay 2000

Biography

Big Yellow is the UK's brand leader in self storage. Big Yellow now operates from a platform of 100 stores, including 25 stores branded as Armadillo Self Storage, in which the Group has a 20% interest. We own a further thirteen Big Yellow self storage development sites, of which six have planning consent. The current maximum lettable area of the existing platform (including Armadillo) is 5.7 million sq ft. When fully built out the portfolio will provide approximately 6.6 million sq ft of flexible storage space. Of the Big Yellow stores and sites, 98% by value are held freehold and long leasehold, with the remaining 2% short leasehold. The Group has pioneered the development of the latest generation of self storage facilities, which utilise state of the art technology and are located in high profile, accessible, main road locations. Our focus on the location and visibility of our Big Yellow stores, coupled with our excellent customer service and our market leading online platform, has created the most recognised brand name in the UK self storage industry. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 20:39
End of Day Share Price2020/04/03 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.