Big Yellow Group (BYG) AI Stock Analysis

• Market Cap: £1.79B
• Dividend Yield: 4.83%
• Average Volume (3M): 351.49K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.76
• Revenue Growth: 4.34%
• EPS Growth: 33.66%
• Country: UK
• Employees: 503
• Sector: Real Estate
• Sector Strength: 69
• Industry: REITs
• EPS (TTM): 1.36
• Shares Outstanding: 196,714,690
• 10 Day Avg. Volume: 317,708
• 30 Day Avg. Volume: 351,489
• PEG Ratio: 0.20
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.02
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 1,165.80p
• Price Target Upside: 27.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Big Yellow Group shows strong financial performance with high profitability and low leverage, making it well-positioned for growth in the REITs sector. The stock is attractively valued with a low P/E ratio and high dividend yield, appealing to value investors. However, technical indicators suggest a bearish trend, warranting caution for momentum investors. The director's share purchase reflects insider confidence but is not a major factor in the overall score.

Positive Factors

Business Activity

Overall move-ins for the quarter were up 2%, with business move-ins up 9%.

Occupancy Rates

Like-for-like closing occupancy was down 0.3% compared to 3Q24 at 78.1%, an improvement of 1.5% from the end of H1.

Negative Factors

Earnings and Margins

Earnings have been impacted by declining occupancy and falling margins.

Big Yellow Group Business Overview & Revenue Model

Company Description

Big Yellow Group Plc is a real estate investment trust, which engages in the provision of self storage and related services. It also operates from a platform, including stores branded as Armadillo Self Storage. The company was founded by Nicholas John Vetch, James Gibson, and Philip Adrian Burks in September 1998 and is headquartered in Bagshot, the United Kingdom.

How the Company Makes Money

Big Yellow Group generates revenue primarily through the rental of storage units across its numerous facilities strategically located in high-demand urban areas. The company charges customers based on the size of the unit and the duration of the rental agreement, with options ranging from short-term to indefinite storage contracts. Ancillary revenue streams include the sale of packing materials and insurance services for stored goods. Additionally, BYG benefits from strategic partnerships with moving companies and property agencies, which funnel potential clients to their storage services. The company's earnings are further bolstered by its strong brand presence and reputation for high-quality customer service, contributing to a steady flow of new and repeat customers.

Big Yellow Group Financial Statement Overview

Summary

Big Yellow Group displays strong financial health characterized by high profitability, low leverage, and improving cash flow generation. Revenue and profit margins are robust, indicating effective operational management. While the balance sheet is stable with low debt levels, attention is needed on cash conversion efficiency. The company's financial position is resilient, supporting growth and investment opportunities in the REITs sector.

Income Statement

The company demonstrates strong profitability with a high gross profit margin of 71.9% and a significant net profit margin of 120.1% for the latest year. Revenue growth rate is solid at 5.7%, indicating steady expansion. The EBIT margin stands at 64.3%, reflecting efficient core operations, while the EBITDA margin is notably robust at 133.5% due to significant non-cash adjustments. Overall, the income statement suggests excellent profitability and growth potential, though the exceptionally high net profit margin could include extraordinary items that warrant further investigation.

Balance Sheet

The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.17, highlighting low leverage. The return on equity is impressive at 9.8%, showcasing effective use of equity capital. The equity ratio is very healthy at 84.2%, underscoring financial stability. However, the relatively high total liabilities in comparison to total equity suggest potential risks if asset values decline.

Cash Flow

Cash flow analysis shows a stable operating cash flow to net income ratio of 0.44, suggesting good cash conversion from earnings, though slightly below optimal levels. Free cash flow growth is high at 1784.9%, reflecting improved cash generation capabilities. The free cash flow to net income ratio is a solid 0.44. Overall, cash flow metrics highlight a positive trend in cash generation, yet operating cash flow conversion could be improved.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
199.62M	188.83M	171.32M	135.24M	129.31M
	Gross Profit
143.63M	134.52M	120.94M	91.90M	88.81M
	EBIT
128.41M	120.00M	106.98M	81.49M	79.98M
	EBITDA
266.58M	94.66M	708.26M	272.77M	104.42M
	Net Income Common Stockholders
239.83M	73.33M	697.27M	265.19M	92.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.36M	8.33M	8.61M	12.32M	51.42M
	Total Assets
2.91B	2.75B	2.67B	1.84B	1.62B
	Total Debt
408.42M	512.27M	438.66M	353.37M	418.67M
	Net Debt
399.06M	503.94M	430.05M	341.04M	367.25M
	Total Liabilities
459.64M	569.54M	486.00M	388.40M	452.44M
	Stockholders Equity
2.45B	2.18B	2.18B	1.45B	1.16B
Cash Flow		Free Cash Flow
104.79M	5.56M	2.42M	4.39M	10.52M
	Operating Cash Flow
104.79M	111.98M	107.57M	77.40M	74.26M
	Investing Cash Flow
-20.79M	-106.23M	-171.00M	-72.72M	-48.42M
	Financing Cash Flow
-82.98M	-6.02M	59.71M	-43.77M	7.67M

Big Yellow Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 915.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BYG, the sentiment is Negative. The current price of 915 is below the 20-day moving average (MA) of 928.90, below the 50-day MA of 933.12, and below the 200-day MA of 1096.67, indicating a bearish trend. The MACD of -7.87 indicates Positive momentum. The RSI at 43.21 is Neutral, neither overbought nor oversold. The STOCH value of 46.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BYG.

Big Yellow Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAFE	76 Outperform	£1.33B	3.57	17.89%	4.93%	-0.36%	85.03%
BYG	72 Outperform	£1.79B	6.71	10.91%	4.83%	4.34%	33.66%
BLND	61 Neutral	£3.53B	19.43	3.17%	6.44%	-30.83%	―
Sector *	61 Neutral	$4.76B	19.07	-3.20%	8.08%	6.43%	-19.69%
LAND	54 Neutral	£4.16B	39.42	1.61%	7.14%	-1.73%	―
GPE	54 Neutral	£1.09B	―	-1.38%	2.53%	-2.73%	91.05%

Big Yellow Group Corporate Events

Big Yellow Group Updates Share Capital and Voting Rights

Big Yellow Group PLC announced that as of 28 February 2025, its issued share capital consists of 196,714,696 ordinary shares with voting rights. This update is in compliance with the UK Financial Conduct Authority’s Disclosure and Transparency Rule 5.6.1, and it informs shareholders of the total number of shares with voting rights, which is crucial for determining their notification requirements under the FCA’s rules.

Big Yellow Group PLC Announces Total Voting Rights

Big Yellow Group PLC has announced its total voting rights as of January 31, 2025, in compliance with the UK Financial Conduct Authority’s Disclosure and Transparency Rule 5.6.1. The company’s issued share capital consists of 196,714,696 ordinary shares with voting rights, and no shares are held in treasury. This information is crucial for shareholders to determine if they need to notify changes in their interests under the relevant regulatory framework.

Big Yellow Group PLC Director Increases Shareholding

Big Yellow Group PLC announced a transaction involving its Non-Executive Director, Michael O’Donnell, who purchased 3,000 ordinary shares of the company on January 22, 2025, at an average price of 945.4662 pence per share. This acquisition increases O’Donnell’s beneficial holding to 9,000 shares, representing 0.005% of the company’s issued share capital, indicating a slight increase in insider ownership which may reflect confidence in the company’s future performance.

Big Yellow Group Reports Revenue Growth and Expansion Plans Amid Market Challenges

Big Yellow Group PLC reported a 2% increase in total revenue for the third quarter of 2024, with year-to-date revenue up by 3%. The company saw improvements in business move-ins and rent per square foot, while managing a slight decline in occupancy. Despite macroeconomic challenges, the group remains confident in its resilience, planning to invest £176 million over the next three years to expand its store portfolio. The company aims to maintain its net debt to EBITDA ratio and projects a modest growth in earnings per share for the full year.

Big Yellow Group PLC to Announce Q3 Financial Results

Big Yellow Group PLC announced that it will release its third-quarter financial results for the period ending 31 December 2024 on 17 January 2025. This announcement is a significant event for stakeholders, potentially influencing market perceptions and investor decisions regarding the company’s performance and future prospects in the self-storage industry.

Big Yellow Group PLC Announces Total Voting Rights for 2024

Big Yellow Group PLC has announced its total voting rights as of 31 December 2024, in line with the UK Financial Conduct Authority’s Disclosure and Transparency Rule 5.6.1. The company reports an issued share capital of 196,714,696 ordinary shares with voting rights, which will serve as the denominator for shareholders to calculate their interests. This announcement helps maintain transparency in shareholder interests and upholds regulatory requirements, potentially impacting stakeholder engagement and market perception.