Big Yellow Group (BYG) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: 4.53%
• Average Volume (3M): 686.43K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.81
• Revenue Growth: 1.81%
• EPS Growth: -51.09%
• Country: UK
• Employees: 503
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): N/A
• Shares Outstanding: 196,767,700
• 10 Day Avg. Volume: 524,009
• 30 Day Avg. Volume: 686,429
• PEG Ratio: 0.04
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 9.77
• P/FCF Ratio: 18.62
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 11.45
• Enterprise Value/Gross Profit: 15.87
• Enterprise Value/Ebitda: 16.22
• 1Y Price Target: $1,286.90
• Price Target Upside: 25.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.6
• Revenue Forecast (FY): $198.13M

• Rating: 68 Neutral
• Price Target: 1,116.00p ▲(9.20% Upside)

Big Yellow Group's overall stock score is driven by strong financial performance and strategic expansion efforts, which are slightly offset by bearish technical indicators and potential cost challenges from increased property rates. The company's moderate valuation and attractive dividend yield provide additional support to the score.

Positive Factors

Business Model Strength

The recurring revenue model from self-storage rentals provides a stable and predictable income stream, enhancing financial stability and reducing volatility.

Balance Sheet Health

A strong equity ratio and low leverage provide financial resilience, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Cash Flow Management

Growing free cash flow indicates effective cash management, enabling reinvestment in the business and potential for debt reduction, supporting long-term growth.

Negative Factors

Declining Net Income

Volatility in net income can signal challenges in maintaining profitability, impacting the company's ability to sustain growth and shareholder returns.

Equity Decline

A decline in equity can indicate issues with asset valuation or earnings retention, potentially affecting the company's financial health and investment capacity.

Potential Acquisition Uncertainty

The potential acquisition by Blackstone introduces uncertainty regarding strategic direction and operational changes, which could impact long-term business stability.

Big Yellow Group Business Overview & Revenue Model

Company Description

Big Yellow is the UK's brand leader in self storage. Big Yellow now operates from a platform of 103 stores, including 25 stores branded as Armadillo Self Storage, in which the Group has a 20% interest. We own a further 11 Big Yellow self storage development sites, of which eight have planning consent. The current maximum lettable area of the existing platform (including Armadillo) is 6.0 million sq ft. When fully built out the portfolio will provide approximately 6.8 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 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.

How the Company Makes Money

Big Yellow Group primarily generates revenue through the rental of self-storage units to customers on a short-term and long-term basis. The company charges customers monthly or weekly fees based on the size of the storage unit and the duration of the rental. In addition to unit rentals, BYG earns income from ancillary services, including the sale of packing materials, insurance for stored items, and other related services. The company also benefits from partnerships with local businesses and community organizations, which can drive additional traffic to their facilities. Factors contributing to BYG's earnings include strong demand for storage solutions, competitive pricing strategies, and effective marketing efforts that enhance brand visibility in the self-storage market.

Big Yellow Group Financial Statement Overview

Summary

Big Yellow Group's financial performance is robust, characterized by strong revenue growth, high profitability margins, and a solid balance sheet with low leverage. The company exhibits effective cash flow management and has maintained stability despite fluctuations in net income. While there are some concerns over declining equity and net income, the overall financial health remains strong, positioning the company well for future growth and stability.

Income Statement

Big Yellow Group has demonstrated strong revenue growth with a Revenue Growth Rate of 2.44% in the latest annual report. The company maintains healthy profitability with a high Gross Profit Margin of approximately 69.6% and a robust Net Profit Margin of 98.69% due to significant non-operating income. The EBIT and EBITDA margins are also strong at 61.93% and 108.72%, respectively, indicating solid operational efficiency. However, the decline in Net Income from the previous year suggests potential volatility in earnings.

Balance Sheet

The balance sheet of Big Yellow Group is solid, with a strong Equity Ratio of 84.71%, indicating financial stability and low leverage risk. The Debt-to-Equity Ratio is modest at 0.16, showing conservative debt usage. However, the decline in Stockholders' Equity compared to the previous year suggests potential challenges in asset value or retained earnings growth. The Return on Equity (ROE) remains impressive at 7.87%, highlighting effective use of equity in generating profits.

Cash Flow

The cash flow statements reveal a stable operating cash flow with an Operating Cash Flow to Net Income Ratio of 0.57. The Free Cash Flow has grown by 9.34% from the previous year, reflecting efficient cash management. While the Free Cash Flow to Net Income Ratio stands at 0.57, indicating room for improvement, the company shows a positive cash flow trend, enhancing its capacity to reinvest or reduce debt.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	206.68M	199.62M	204.50M	188.83M	171.32M	135.24M
Gross Profit	149.01M	143.63M	142.37M	134.52M	120.94M	91.90M
EBITDA	145.81M	266.58M	222.32M	122.46M	708.26M	272.77M
Net Income	130.50M	239.83M	201.89M	73.33M	697.27M	265.19M
Balance Sheet
Total Assets	3.11B	2.91B	3.03B	2.75B	2.67B	1.84B
Cash, Cash Equivalents and Short-Term Investments	7.22M	9.36M	8.77M	8.33M	8.61M	12.32M
Total Debt	462.82M	408.42M	410.33M	512.27M	438.66M	353.37M
Total Liabilities	519.91M	459.64M	463.72M	569.54M	486.00M	388.40M
Stockholders Equity	2.59B	2.45B	2.57B	2.18B	2.18B	1.45B
Cash Flow
Free Cash Flow	51.53M	104.79M	114.57M	5.56M	2.42M	4.39M
Operating Cash Flow	112.37M	104.79M	114.57M	111.98M	107.57M	77.40M
Investing Cash Flow	-99.52M	-20.79M	-27.67M	-106.23M	-171.00M	-72.72M
Financing Cash Flow	-11.23M	-82.98M	-87.50M	-6.02M	59.71M	-43.77M

Big Yellow Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1022.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 1022 is below the 20-day moving average (MA) of 1047.05, below the 50-day MA of 1091.74, and above the 200-day MA of 980.91, indicating a neutral trend. The MACD of -20.54 indicates Negative momentum. The RSI at 41.94 is Neutral, neither overbought nor oversold. The STOCH value of 74.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	83 Outperform	£1.56B	5.31	13.69%	4.27%	1.66%	11.42%
SRE	77 Outperform	£1.42B	8.06	12.51%	5.73%	4.80%	37.75%
BLND	75 Outperform	£3.91B	11.13	6.14%	5.85%	-20.83%	―
BYG	68 Neutral	$2.01B	15.32	4.95%	4.53%	1.81%	-51.09%
GRI	67 Neutral	£1.34B	6.59	10.30%	3.59%	-8.66%	553.35%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
WKP	57 Neutral	£749.79M	-9.84	-5.20%	7.31%	-1.67%	-120.18%

Big Yellow Group Corporate Events

Big Yellow Group Ends Acquisition Talks with Blackstone

Big Yellow Group PLC announced the termination of discussions with Blackstone Europe LLP regarding a potential cash offer for the company. The decision was made after evaluating Big Yellow’s strong performance and strategic direction, concluding that there was no basis for continuing talks. The deadline for any potential offer from Blackstone will not be extended, signaling Big Yellow’s confidence in its current business model and market positioning.

Big Yellow Group Faces Increased Property Rates After UK Budget Revaluation

Big Yellow Group PLC has announced an update following the UK Budget’s revaluation of commercial properties, which affects their property rates. The changes will result in an increase of £1.8 million (8.5%) in their annual rates bill for the year ending March 2027, impacting 27 of their stores with a rateable value above £500,000. The company has previously succeeded in reducing rateable values for a significant portion of its properties, achieving rebates of approximately £5 million over six years. As they review the 2026 Listing, they plan to prioritize appeals to manage future costs effectively.

Big Yellow Group PLC Announces Total Voting Rights Update

Big Yellow Group PLC has announced its total voting rights as of November 30, 2025, with an issued share capital of 196,767,698 ordinary shares, all of which have voting rights. This announcement is in compliance with the UK Financial Conduct Authority’s Disclosure and Transparency Rule 5.6.1, providing shareholders with the necessary information to determine their notification requirements regarding their interests in the company.

Big Yellow Group Reports Revenue Growth Amid Expansion Efforts

Big Yellow Group PLC reported a modest 2% increase in store revenue for the six months ending September 2025, driven by rental growth despite a slight decline in occupancy rates. The company opened new stores in Staines and Queensbury, contributing to revenue growth, and plans further expansion with several sites in development, reflecting confidence in its strategy amid external challenges.

Big Yellow Extends Deadline for Blackstone’s Potential Offer

Big Yellow Group PLC has announced an extension of the deadline for Blackstone Europe LLP to decide on a potential cash offer for the company. The extension, consented by the Panel on Takeovers and Mergers, allows Blackstone more time to evaluate Big Yellow, considering factors like the macro-economic environment and the upcoming UK budget’s impact on the self-storage sector. The revised deadline is set for December 8, 2025, but there is no certainty that an offer will be made.

Big Yellow Group Updates Share Capital and Voting Rights

Big Yellow Group PLC announced that as of 31 October 2025, its issued share capital consists of 196,767,698 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 regarding their interests in the company.

Big Yellow Group PLC Responds to Acquisition Speculation

Big Yellow Group PLC has acknowledged media speculation regarding a potential acquisition by Blackstone Europe LLP, which may include a cash offer for the company’s entire share capital. While Big Yellow has held meetings with various parties about potential options, including a sale, it has not received any formal approach or is in discussions about a sale. This announcement highlights the strategic interest in Big Yellow and could impact its market positioning and stakeholder interests.

Big Yellow Group to Announce Half-Year Results

Big Yellow Group PLC has announced that it will release its half-year financial results for the period ending 30 September 2025 on 17 November 2025. The company will also hold a presentation for analysts and investors the following day, indicating its commitment to transparency and engagement with stakeholders.

Big Yellow Group PLC Updates Share Capital and Voting Rights

Big Yellow Group PLC announced that as of 30 September 2025, its issued share capital consists of 196,764,696 ordinary shares with voting rights, in compliance with the UK Financial Conduct Authority’s Disclosure and Transparency Rule 5.6.1. This update is crucial for shareholders to calculate their interests and any changes in their holdings, ensuring transparency and regulatory compliance.

Big Yellow Group Expands with Strategic London Acquisition

Big Yellow Group PLC has announced the acquisition of a 0.5-acre freehold property in Bethnal Green, London, for £10.8 million. The company plans to develop a 68,000 sq ft self-storage center on the site, aiming for an 8% NOI yield upon stabilization. This strategic acquisition enhances Big Yellow’s pipeline in a high-demand area with scarce self-storage options, potentially strengthening its market position in London.