LSE:SAFE

Stock Analysis Report

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Market Cap

UK£2.2b

Last Updated

2021/08/03 18:12 UTC

Data Sources

Company Financials +

Executive Summary

Safestore is the UK's largest self-storage group with 163 stores, comprising 125 wholly owned stores in the UK (including over 70 in London and the South East with the remainder in key metropolitan areas such as Manchester, Birmingham, Glasgow, Edinburgh, Liverpool and Bristol), 28 wholly owned stores in the Paris region, 6 stores in the Netherlands and 4 stores within Barcelona, Spain. More Details


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Safestore Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SAFE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SAFE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

SAFE

2.3%

GB REITs

0.9%

GB Market


1 Year Return

37.9%

SAFE

5.7%

GB REITs

25.9%

GB Market

Return vs Industry: SAFE exceeded the UK REITs industry which returned 5.7% over the past year.

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


Shareholder returns

SAFEIndustryMarket
7 Day2.1%2.3%0.9%
30 Day8.0%5.8%1.6%
90 Day25.0%7.7%6.5%
1 Year41.2%37.9%30.9%5.7%26.0%25.9%
3 Year105.2%90.8%9.3%10.6%25.0%24.9%
5 Year226.2%185.4%26.6%21.0%40.3%13.5%

Long-Term Price Volatility Vs. Market

How volatile is Safestore Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Safestore Holdings undervalued compared to its fair value and its price relative to the market?

5.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAFE (£10.53) is trading below our estimate of fair value (£11.12)

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


Price To Earnings Ratio

PE vs Industry: SAFE is good value based on its PE Ratio (9x) compared to the UK REITs industry average (14x).

PE vs Market: SAFE is good value based on its PE Ratio (9x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SAFE is overvalued based on its PB Ratio (1.9x) compared to the GB REITs industry average (0.9x).


Future Growth

How is Safestore Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAFE's earnings are forecast to decline over the next 3 years (-21.7% per year).

Earnings vs Market: SAFE's earnings are forecast to decline over the next 3 years (-21.7% per year).

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

Revenue vs Market: SAFE's revenue (5.4% per year) is forecast to grow faster than the UK market (-149.2% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Safestore Holdings performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAFE has a large one-off gain of £188.5M impacting its April 30 2021 financial results.

Growing Profit Margin: SAFE's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: SAFE's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: SAFE's earnings growth over the past year (31.8%) exceeds its 5-year average (19.9% per year).

Earnings vs Industry: SAFE earnings growth over the past year (31.8%) underperformed the REITs industry 63.4%.


Return on Equity

High ROE: SAFE's Return on Equity (21.2%) is considered high.


Financial Health

How is Safestore Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SAFE's short term assets (£68.4M) exceed its short term liabilities (£68.1M).

Long Term Liabilities: SAFE's short term assets (£68.4M) do not cover its long term liabilities (£622.6M).


Debt to Equity History and Analysis

Debt Level: SAFE's debt to equity ratio (40.1%) is considered high.

Reducing Debt: SAFE's debt to equity ratio has reduced from 48.4% to 40.1% over the past 5 years.

Debt Coverage: SAFE's debt is not well covered by operating cash flow (17.9%).

Interest Coverage: SAFE's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Dividend

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

1.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAFE's dividend (1.92%) is higher than the bottom 25% of dividend payers in the UK market (1.32%).

High Dividend: SAFE's dividend (1.92%) is low compared to the top 25% of dividend payers in the UK market (3.91%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.4%), SAFE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAFE's dividends in 3 years are forecast to be covered by earnings (66% payout ratio).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Frederic Vecchioli (55 yo)

7.92yrs

Tenure

UK£1,108,000

Compensation

Mr. Frederic Vecchioli serves as the Chief Executive Officer and Director of Safestore Limited. Mr. Vecchioli has been the Chief Executive Officer of Safestore Holdings plc since September 4, 2013 and has ...


CEO Compensation Analysis

Compensation vs Market: Frederic's total compensation ($USD1.54M) is about average for companies of similar size in the UK market ($USD1.72M).

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


Leadership Team

Experienced Management: SAFE's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: SAFE's board of directors are considered experienced (5.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Safestore Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Safestore Holdings plc
  • Ticker: SAFE
  • Exchange: LSE
  • Founded: 1998
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: UK£2.207b
  • Shares outstanding: 210.79m
  • Website: https://www.safestore.com

Number of Employees


Location

  • Safestore Holdings plc
  • Brittanic House
  • Stirling Way
  • Borehamwood
  • Hertfordshire
  • WD6 2BT
  • United Kingdom

Listings


Biography

Safestore is the UK's largest self-storage group with 163 stores, comprising 125 wholly owned stores in the UK (including over 70 in London and the South East with the remainder in key metropolitan areas s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 18:12
End of Day Share Price2021/08/03 00:00
Earnings2021/04/30
Annual Earnings2020/10/31


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.