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Big Yellow Group plc (GB:BYG)
LSE:BYG

Big Yellow Group (BYG) AI Stock Analysis

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Big Yellow Group

(LSE:BYG)

Rating:81Outperform
Price Target:
Big Yellow Group demonstrates strong financial performance with robust profit margins and low leverage. The technical indicators show positive momentum, complemented by an attractive valuation with a low P/E ratio and solid dividend yield. Recent corporate events further support confidence in the company's growth potential. The primary strengths lie in its financial health and attractive valuation, though attention to cash flow conversion efficiency and caution around technical overbought indicators is advised.
Positive Factors
Business Activity
Overall move-ins for the quarter were up 2%, with business move-ins up 9%.
Growth Potential
Big Yellow's large, fully-funded pipeline of well-located stores should drive growth.
Revenue Performance
Rate growth since the year end has outperformed the prior year, with overall revenue growth running at 3%.
Negative Factors
Consumer Confidence
Higher levels of macroeconomic uncertainty have impacted consumer confidence, leading to some softening in demand and some loss of occupancy.
Earnings and Sentiment Risks
There is still a risk to both earnings and sentiment ahead of the completion of key developments.
Share Performance
Big Yellow’s shares have declined some 24.5%, underperforming the UK EPRA Index which has seen values fall 5.3%.

Big Yellow Group (BYG) vs. iShares MSCI United Kingdom ETF (EWC)

Big Yellow Group Business Overview & Revenue Model

Company DescriptionBig Yellow Group (BYG) is a prominent self-storage company based in the United Kingdom. It operates primarily in the real estate and storage sectors, providing convenient and secure storage solutions for both personal and business use. The company offers a range of unit sizes and flexible rental terms, catering to various customer needs, including those requiring temporary storage during relocation, businesses needing additional space for inventory, or individuals requiring long-term storage solutions.
How the Company Makes MoneyBig 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
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue203.01M199.62M188.83M171.32M135.24M129.31M
Gross Profit150.42M143.63M134.52M120.94M91.90M88.81M
EBITDA197.47M266.58M94.66M708.26M272.77M104.42M
Net Income265.89M239.83M73.33M697.27M265.19M92.58M
Balance Sheet
Total Assets2.99B2.91B2.75B2.67B1.84B1.62B
Cash, Cash Equivalents and Short-Term Investments5.60M9.36M8.33M8.61M12.32M51.42M
Total Debt380.58M408.42M512.27M438.66M353.37M418.67M
Total Liabilities438.81M459.64M569.54M486.00M388.40M452.44M
Stockholders Equity2.55B2.45B2.18B2.18B1.45B1.16B
Cash Flow
Free Cash Flow100.98M104.79M5.56M2.42M4.39M10.52M
Operating Cash Flow114.09M104.79M111.98M107.57M77.40M74.26M
Investing Cash Flow7.03M-20.79M-106.23M-171.00M-72.72M-48.42M
Financing Cash Flow-122.58M-82.98M-6.02M59.71M-43.77M7.67M

Big Yellow Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1012.00
Price Trends
50DMA
993.30
Positive
100DMA
959.64
Positive
200DMA
1020.15
Negative
Market Momentum
MACD
5.92
Negative
RSI
55.07
Neutral
STOCH
62.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BYG, the sentiment is Positive. The current price of 1012 is above the 20-day moving average (MA) of 998.00, above the 50-day MA of 993.30, and below the 200-day MA of 1020.15, indicating a neutral trend. The MACD of 5.92 indicates Negative momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BYG.

Big Yellow Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBBYG
81
Outperform
$1.98B9.808.06%4.47%4.34%33.66%
79
Outperform
£1.54B5.2213.69%5.87%1.66%11.42%
74
Outperform
£3.77B10.736.14%4.17%-20.83%
66
Neutral
£997.73M12.13-0.02%4.98%10.34%31.28%
GBGPE
64
Neutral
£1.47B12.026.47%2.02%-2.73%91.05%
47
Neutral
£4.71B11.896.13%5.77%-1.73%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BYG
Big Yellow Group
1,012.00
-110.82
-9.87%
GB:LAND
Land Securities Group plc REIT
634.00
44.22
7.50%
GB:SAFE
Safestore Holdings
705.00
-33.75
-4.57%
GB:GPE
Great Portland Estates plc R.E.I.T.
363.00
35.20
10.74%
GB:BLND
British Land Company plc
377.00
-7.72
-2.01%

Big Yellow Group Corporate Events

Regulatory Filings and Compliance
Big Yellow Group Updates Share Capital Details
Neutral
Apr 30, 2025

Big Yellow Group PLC has announced that as of 30 April 2025, its issued share capital consists of 196,714,696 ordinary shares with voting rights. This update is in accordance with the UK Financial Conduct Authority’s Disclosure and Transparency Rule 5.6.1, and the total number of shares may be used by shareholders to determine their interest or changes in interest in the company.

Spark’s Take on GB:BYG Stock

According to Spark, TipRanks’ AI Analyst, GB:BYG is a Outperform.

Big Yellow Group demonstrates strong financial performance with robust profit margins and low leverage. The technical indicators show positive momentum, complemented by an attractive valuation with a low P/E ratio and solid dividend yield. Recent corporate events further support confidence in the company’s growth potential. The primary strengths lie in its financial health and attractive valuation, though attention to cash flow conversion efficiency and caution around technical overbought indicators is advised.

To see Spark’s full report on GB:BYG stock, click here.

Regulatory Filings and Compliance
Big Yellow Group Updates Share Capital Structure
Neutral
Mar 31, 2025

Big Yellow Group PLC announced that as of March 31, 2025, its issued share capital consists of 196,714,696 ordinary shares with voting rights. This update is in accordance with the UK Financial Conduct Authority’s Disclosure and Transparency Rule 5.6.1, and shareholders can use this figure to determine their notification requirements under these rules.

Delistings and Listing ChangesBusiness Operations and Strategy
Big Yellow Group Announces Block Listing of Shares
Positive
Mar 25, 2025

Big Yellow Group PLC has applied for block listings of 200,000 ordinary shares on the London Stock Exchange, with equal distribution under its Unapproved and Approved Share Option Plans. This move is expected to enhance the company’s financial flexibility and support its growth strategy, with the shares set to be admitted on 27 March 2025.

Regulatory Filings and Compliance
Big Yellow Group Updates Share Capital and Voting Rights
Neutral
Feb 28, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025