LSE:BYG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Second-rate dividend payer with questionable 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


Market Performance


7 Day Return

6.8%

BYG

4.1%

GB REITs

2.0%

GB Market


1 Year Return

33.3%

BYG

7.5%

GB REITs

3.3%

GB Market

Return vs Industry: BYG exceeded the UK REITs industry which returned 7.5% over the past year.

Return vs Market: BYG exceeded the UK Market which returned 3.3% over the past year.


Share holder returns

BYGIndustryMarket
7 Day6.8%4.1%2.0%
30 Day9.2%5.6%-1.0%
90 Day10.1%6.4%-1.7%
1 Year38.1%33.3%12.4%7.5%8.3%3.3%
3 Year79.2%60.9%25.5%7.8%19.0%4.5%
5 Year167.5%124.9%41.6%13.4%38.4%8.4%

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

14.55x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: BYG (£11.4) is trading above our estimate of fair value (£10.14)

Significantly Undervalued: BYG is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: BYG is poor value based on its PE Ratio (14.6x) compared to the REITs industry average (13.7x).

PE vs Market: BYG is good value based on its PE Ratio (14.6x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: BYG is poor value based on its PEG Ratio (1.3x)


Price Based on Value of Assets

PB vs Industry: BYG is overvalued based on its PB Ratio (1.7x) compared to the GB REITs industry average (0.9x).


Next Steps

Future Growth

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

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: BYG's forecast earnings growth (11.6% per year) is above the savings rate (1.2%).

Earnings vs Market: BYG's earnings (11.6% per year) are forecast to grow slower than the UK market (12.3% per year).

High Growth Earnings: BYG's earnings are forecast to grow, but not significantly.

Revenue vs Market: BYG's revenue (5.4% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: BYG's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: BYG's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

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

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BYG's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: BYG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BYG had negative earnings growth (-5.3%) over the past year, making it difficult to compare to the REITs industry average (-16.8%).


Return on Equity

High ROE: BYG's Return on Equity (11.3%) is considered low.


Return on Assets

ROA vs Industry: BYG has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: BYG has not improved its Return on Capital Employed over the past 3 years.


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?

3.31%

Expected Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.0%markettop25%5.4%industryaverage5.4%forecastin3Years3.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: BYG's dividend (2.91%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: BYG's dividend (2.91%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: Whilst dividend payments have been stable, BYG has been paying a dividend for less than 10 years.

Growing Dividend: BYG's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.5%), BYG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BYG's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

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

12.3yrs

Average management tenure


CEO

Jim Gibson (58yo)

21.1yrs

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 ($USD1.50M) is about average for companies of similar size in the UK market ($USD2.29M).

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


Management Age and Tenure

12.3yrs

Average Tenure

53yo

Average Age

Experienced Management: BYG's management team is seasoned and experienced (12.3 years average tenure).


Board Age and Tenure

10.6yrs

Average Tenure

55yo

Average Age

Experienced Board: BYG's board of directors are seasoned and experienced ( 10.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£38,53318 Jun 19
Richard Cotton
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares3,763
Max PriceUK£10.24
SellUK£38,53318 Jun 19
Richard Cotton
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares3,763
Max PriceUK£10.24
SellUK£3,695,80718 Mar 19
Nicholas Vetch
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares375,407
Max PriceUK£9.84
SellUK£4,848,06506 Mar 19
Nicholas Vetch
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares490,829
Max PriceUK£9.88

Ownership Breakdown


Management Team

  • Adrian Lee (53yo)

    Operations Director & Director

    • Tenure: 19.4yrs
    • Compensation: UK£863.11k
  • Nick Vetch (58yo)

    Executive Chairman of the Board

    • Tenure: 15.6yrs
    • Compensation: UK£1.06m
  • Cheryl Hathaway (53yo)

    Head of Human Resources

    • Tenure: 0yrs
  • Stuart Grinnall (44yo)

    Head of IT

    • Tenure: 3.7yrs
  • Jim Gibson (58yo)

    CEO & Director

    • Tenure: 21.1yrs
    • Compensation: UK£1.18m
  • David Knight (55yo)

    Head of Facilities

    • Tenure: 0yrs
  • John Trotman (41yo)

    CFO & Director

    • Tenure: 12.1yrs
    • Compensation: UK£871.71k
  • Tom Wilcockson (62yo)

    Head of New Business Development & Director of International Franchise

    • Tenure: 0yrs
  • Anthony Chenery (47yo)

    Head of Marketing & E-Commerce

    • Tenure: 0yrs
  • Nicola Crosby

    Head of Store Operations

    • Tenure: 4.3yrs

Board Members

  • Adrian Lee (53yo)

    Operations Director & Director

    • Tenure: 19.4yrs
    • Compensation: UK£863.11k
  • Nick Vetch (58yo)

    Executive Chairman of the Board

    • Tenure: 15.6yrs
    • Compensation: UK£1.06m
  • Jim Gibson (58yo)

    CEO & Director

    • Tenure: 21.1yrs
    • Compensation: UK£1.18m
  • Georgina Harvey (54yo)

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£45.10k
  • Steve Johnson (55yo)

    Non-Executive Director

    • Tenure: 9.1yrs
    • Compensation: UK£40.00k
  • Richard Cotton (64yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: UK£45.10k
  • John Trotman (41yo)

    CFO & Director

    • Tenure: 12.1yrs
    • Compensation: UK£871.71k
  • Vince Niblett

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£45.10k
  • Anna Keay

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£40.00k

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£1.892b
  • Shares outstanding: 166.01m
  • 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

Biography

Big Yellow is the UK's brand leader in self storage. Big Yellow now operates from a platform of 99 stores, including 24 stores branded as Armadillo Self Storage, in which the Group has a 20% interest. We o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:41
End of Day Share Price2019/10/11 00:00
Earnings2019/03/31
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.

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