Safestore Holdings (SAFE) AI Stock Analysis

• Market Cap: £1.32B
• Dividend Yield: 5.04%
• Average Volume (3M): 681.52K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 1.27
• Revenue Growth: -0.36%
• EPS Growth: 84.97%
• Country: UK
• Employees: 804
• Sector: Real Estate
• Sector Strength: 79
• Industry: REIT - Industrial
• EPS (TTM): 1.70
• Shares Outstanding: 218,490,500
• 10 Day Avg. Volume: 635,703
• 30 Day Avg. Volume: 681,523
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.97
• Price to Cash Flow (P/CF): 14.20
• 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: £826.00
• Price Target Upside: 36.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Safestore Holdings is in a solid financial position with strong profitability and attractive valuation, bolstered by positive corporate events. The main concern lies in the negative free cash flow, which requires monitoring. Technical analysis presents mixed signals, urging caution despite the fundamentally strong investment case, particularly for value and income investors.

Positive Factors

Earnings Growth

Safestore has a fully-funded and ambitious development programme, set to deliver a c.15% increase in maximum lettable area, which is expected to drive earnings growth from next year.

Financial Stability

Safestore is well able to weather economic challenges given its strong balance sheet and highly capable management.

Market Expansion

Self-storage is a structural growth story, with levels of penetration in Europe far lower than in the US and even the UK, which presents a strong opportunity for Safestore in its continued expansion into Europe.

Negative Factors

Cost Pressures

The modest but progressive improvement in current trading is offset by further cost pressures and rising interest costs, and the company expects its development programme to be earnings dilutive over the next two years.

Interest Costs

Higher interest costs due to developments and the time it takes to let up new stores puts the brakes on earnings per share growth this year.

Sector Concerns

No UK REIT has avoided the sector's de-rating, with share prices adversely impacted by higher rate expectations, a weak economy, and property investment markets devoid of liquidity.

Safestore Holdings Business Overview & Revenue Model

Company Description

Safestore Holdings plc is a leading self-storage company in the United Kingdom and the second-largest in Europe. The company operates a network of convenient and secure storage facilities that cater to both personal and business customers. Safestore provides flexible storage solutions, including personal storage units, business storage solutions, and document storage services, tailored to meet the diverse needs of its clientele.

How the Company Makes Money

Safestore Holdings generates revenue primarily through renting self-storage units to individuals and businesses. The company earns money by charging customers for the use of these storage spaces on a monthly basis. Additionally, Safestore offers ancillary services such as insurance products, packaging materials, and transportation, which contribute to its revenue streams. The company's earnings are bolstered by its strategic locations, strong brand presence, and customer service excellence, which help to maintain high occupancy rates and customer retention. Safestore may also engage in partnerships with real estate developers and agents to expand its reach and access new markets.

Safestore Holdings Financial Statement Overview

Summary

Safestore Holdings exhibits solid financial performance with strong profitability and a well-managed balance sheet. Despite a recent dip in revenue and negative free cash flow, the company maintains healthy profit margins and efficient cost management, with strong operating cash flows.

Income Statement

Safestore Holdings shows a strong income statement with consistently improving revenue over the years, albeit with a slight revenue decrease in the most recent period. The company maintains healthy profit margins, with the net profit margin and EBIT margins significantly improving over time. The stability in gross profit margin indicates efficient cost management. However, the dip in revenue growth rate in the latest year suggests a need to monitor future revenue performance.

Balance Sheet

The balance sheet is robust with a strong equity base, reflected in a healthy equity ratio. The company has managed its debt levels effectively, with a reasonable debt-to-equity ratio indicating balanced leverage. The increase in stockholders' equity over time suggests strong financial health and growth. Though there is a rise in total debt, it is proportionate to the overall asset increase, demonstrating good financial management.

Cash Flow

The cash flow statement reveals stable operating cash flows and a prudent approach to capital expenditures. However, recent free cash flow figures are negative, which could raise concerns if this trend continues. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. Nonetheless, the negative free cash flow to net income ratio highlights potential challenges in cash availability for investments or further debt reduction.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
223.30M	223.50M	224.20M	212.50M	186.80M	162.30M
	Gross Profit
152.20M	149.80M	154.30M	149.50M	129.90M	106.00M
	EBIT
255.40M	425.80M	230.40M	123.50M	101.20M	86.30M
	EBITDA
135.10M	425.80M	229.50M	124.50M	102.20M	87.20M
	Net Income Common Stockholders
264.20M	372.30M	200.20M	462.90M	382.00M	178.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.90M	25.30M	16.90M	20.90M	43.20M	19.60M
	Total Assets
2.96B	3.36B	2.96B	2.71B	2.12B	1.70B
	Total Debt
827.20M	924.80M	827.20M	719.20M	567.00M	531.70M
	Net Debt
810.30M	899.50M	810.30M	698.30M	523.80M	512.10M
	Total Liabilities
1.02B	1.13B	1.02B	914.10M	742.40M	665.50M
	Stockholders Equity
1.94B	2.23B	1.94B	1.79B	1.37B	1.04B
Cash Flow		Free Cash Flow
-15.50M	-24.20M	-23.90M	13.60M	96.00M	74.40M
	Operating Cash Flow
107.10M	95.90M	98.00M	109.80M	97.00M	75.70M
	Investing Cash Flow
-117.90M	-122.60M	-124.20M	-200.90M	-66.20M	-77.60M
	Financing Cash Flow
6.70M	35.40M	22.30M	69.00M	-6.30M	-12.00M

Safestore Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 603.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAFE, the sentiment is Positive. The current price of 603.5 is above the 20-day moving average (MA) of 587.67, above the 50-day MA of 586.12, and below the 200-day MA of 710.25, indicating a neutral trend. The MACD of -3.77 indicates Negative momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 78.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SAFE.

Safestore Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMP	81 Outperform	£3.92B	17.92	6.48%	5.82%	95.26%	―
BYG	81 Outperform	$1.89B	7.09	10.91%	4.49%	4.34%	33.66%
SAFE	72 Outperform	£1.32B	3.54	17.89%	5.04%	-0.36%	84.97%
SGRO	71 Outperform	£9.35B	15.46	5.18%	4.24%	-9.88%	―
Sector *	59 Neutral	$2.71B	11.52	0.08%	8691.97%	5.56%	-16.56%
GCP	58 Neutral		32.00	2.09%	9.72%	-8.69%	-35.71%

Safestore Holdings Corporate Events

Safestore CEO Invests in Company Shares, Signaling Confidence

Safestore Holdings plc announced a significant transaction involving its CEO, Frederic Vecchioli, who purchased 51,000 ordinary shares at a price of £5.9891 each, totaling £305,444.10, on the London Stock Exchange. This transaction reflects confidence in the company’s future prospects and may positively influence investor sentiment, highlighting the leadership’s commitment to the company’s growth and stability.

Spark’s Take on GB:SAFE Stock

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

Overall, Safestore Holdings shows strong financial health and attractive valuation, making it an appealing investment, especially for value and income-seeking investors. The positive corporate events further bolster investor confidence. However, caution is advised due to the recent negative cash flow trends and mixed technical indicators.

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

Safestore Holdings to Announce Interim Results on 10 June 2025

Safestore Holdings plc has announced that it will release its Interim Results for the six months ending 30 April 2025 on 10 June 2025. The announcement will be accompanied by a conference call for analysts and investors, indicating the company’s commitment to transparency and stakeholder engagement.

Spark’s Take on GB:SAFE Stock

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

Safestore Holdings holds a strong investment case with robust financial health, attractive valuation, and positive corporate events. The strong profitability and well-managed balance sheet are complemented by insider confidence and shareholder support. However, the bearish technical indicators and recent negative cash flow trends necessitate caution. Overall, the stock is appealing, particularly for value and income investors.

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

Safestore CEO Increases Stake with Significant Share Purchase

Safestore Holdings plc announced that its CEO, Frederic Vecchioli, has purchased 70,000 ordinary shares of the company at a price of £5.415959 per share, totaling £379,117.13. This transaction, conducted on the London Stock Exchange, reflects a significant investment by the CEO, potentially signaling confidence in the company’s future performance and positively impacting stakeholder sentiment.

Spark’s Take on GB:SAFE Stock

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

Safestore Holdings’ overall stock score reflects strong financial health and attractive valuation. The company’s robust balance sheet and profitability are bolstered by positive corporate events, such as insider purchases and strategic expansions. However, the bearish technical indicators and recent negative cash flow trends suggest caution. Overall, the stock presents a strong investment case, particularly for value and income-seeking investors.

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

Safestore CEO Purchases Significant Shareholding

Safestore Holdings plc announced a transaction involving its Chief Executive Officer, Frederic Vecchioli, who purchased 65,000 ordinary shares at £5.528 each on the London Stock Exchange, totaling £359,320. This transaction highlights the CEO’s confidence in the company’s prospects and may influence stakeholder perceptions positively.

Spark’s Take on GB:SAFE Stock

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

Safestore Holdings’ overall score reflects strong financial performance and attractive valuation, bolstered by positive corporate events. While technical indicators show moderate positivity, attention is needed on revenue growth and free cash flow trends.

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

Safestore Holdings plc AGM Results: All Resolutions Passed

Safestore Holdings plc successfully held its 2025 Annual General Meeting, where all proposed resolutions were passed by the required majority. Key decisions included the approval of the Directors’ Remuneration Report, the declaration of a final dividend, and the election and re-election of several directors. The outcomes of the meeting reflect strong shareholder support and are expected to positively impact the company’s governance and strategic direction.

Safestore Holdings Shows Robust Q1 Growth with New Expansions

Safestore Holdings reported a solid first quarter for 2025, with a 3.5% increase in group revenue at constant exchange rates, driven by growth in both like-for-like stores and new developments. The company added six new stores and one extension, contributing to a significant increase in maximum lettable area. The joint venture acquisition of Italy’s EasyBox marks an entry into the Italian market, highlighting potential growth opportunities due to low self-storage supply. Despite macroeconomic uncertainties, Safestore remains confident in its growth trajectory, supported by strong performance in expansion markets, particularly in Spain, and ongoing development projects.

Safestore Holdings to Release Q1 Trading Update

Safestore Holdings plc has announced that it will release its first quarter trading update for the period ending 31 January 2025 on 20 February 2025. This announcement is significant for stakeholders as it will provide insights into the company’s recent performance and potential future direction, impacting its market positioning and investor confidence.

Safestore Holdings Announces 2024 Annual Report and 2025 AGM Details

Safestore Holdings plc has released its Annual Report and Accounts for 2024, along with the Notice of the 2025 Annual General Meeting (AGM). The AGM is scheduled for March 19, 2025, and shareholders are encouraged to utilize electronic proxy voting services. These documents are available on the company’s website and have been submitted to the Financial Conduct Authority, facilitating transparency and accessibility for stakeholders.

Safestore Holdings Awards Long Term Incentive Plan to Key Executives

Safestore Holdings plc has announced the grant of awards under its 2020 Long Term Incentive Plan. This notification involves transactions by key management, including CEO Frederic Vecchioli and CFO Simon Clinton, who have been granted nil cost options for ordinary shares, reflecting a strategic move to align management interests with company performance.