Safestore Holdings (SAFE) AI Stock Analysis

• Market Cap: £1.40B
• Dividend Yield: 4.74%
• Average Volume (3M): 363.28K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 1.22
• Revenue Growth: 1.66%
• EPS Growth: 11.42%
• Country: UK
• Employees: 804
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Industrial
• EPS (TTM): 1.70
• Shares Outstanding: 218,490,500
• 10 Day Avg. Volume: 409,034
• 30 Day Avg. Volume: 363,279
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £739.00
• Price Target Upside: 14.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: 711.00p ▲(10.49% Upside)

Safestore Holdings' overall stock score is driven by its strong financial performance and attractive valuation. The company's robust balance sheet and low P/E ratio are significant strengths. However, technical indicators suggest bearish momentum, which could pose short-term risks. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Expansion Potential

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.

Financial Performance

Safestore has reported a good start to its financial year, with positive like-for-like performance metrics as occupancy and rate improved across most areas.

Growth Opportunities

The company 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.

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 Challenges

No UK REIT has avoided the sector's de-rating over the last 5 months, 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 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. Safestore was founded in the UK in 1998. It acquired the French business Une Pièce en Plus in 2004 which was founded in 1998 by the current Safestore Group CEO Frederic Vecchioli.

How the Company Makes Money

Safestore Holdings generates revenue primarily through the rental of self-storage units to customers. This involves charging customers a fee for the use of storage space, which can vary based on the size of the unit and the length of the rental period. Key revenue streams include short-term and long-term storage contracts, as well as ancillary services such as the sale of packing materials, insurance products, and van hire services. The company also benefits from economies of scale as it expands its facilities, leading to increased occupancy rates and revenue. Additionally, Safestore has strategic partnerships with local businesses and online platforms, which can drive customer acquisition and enhance service offerings, contributing to its overall earnings.

Safestore Holdings Financial Statement Overview

Summary

Safestore Holdings shows strong profitability and a well-managed balance sheet. The company has consistently improved revenue and profit margins over the years, although recent revenue and free cash flow dips warrant attention. The balance sheet is robust with a healthy equity ratio and balanced leverage.

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

Safestore Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 643.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 643.5 is below the 20-day moving average (MA) of 655.35, below the 50-day MA of 668.36, and above the 200-day MA of 629.98, indicating a neutral trend. The MACD of -7.15 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 23.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SAFE.

Safestore Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAFE	71 Outperform	£1.40B	4.76	13.69%	4.74%	1.66%	11.42%
Sector *	63 Neutral	$7.02B	13.47	-0.50%	7.00%	3.61%	-22.78%
BYLOF	―	$2.43B	9.62	8.06%	4.89%	―	―
BBOX	82 Outperform	£3.49B	8.21	9.42%	5.60%	35.06%	127.62%
SRE	80 Outperform	£1.53B	9.91	11.42%	4.67%	7.20%	34.17%
LMP	74 Outperform	£4.43B	11.14	8.66%	6.55%	122.74%	60.58%
WKP	54 Neutral	£782.48M	144.84	0.35%	7.00%	0.49%	―

Safestore Holdings Corporate Events

Safestore CFO Granted Share Options Under Sharesave Scheme

Safestore Holdings plc announced a transaction involving its Chief Financial Officer, Simon Clinton, who has been granted options to acquire ordinary shares under the company’s Sharesave scheme. The options, priced at £5.228 per share for a total of 3,509 shares, are set to vest and become exercisable in 2028, highlighting the company’s commitment to aligning management incentives with long-term shareholder value.

The most recent analyst rating on (GB:SAFE) stock is a Hold with a £850.00 price target. To see the full list of analyst forecasts on Safestore Holdings stock, see the GB:SAFE Stock Forecast page.

Safestore Holdings to Release Q3 Trading Update

Safestore Holdings plc has announced that it will release its third quarter trading update for the period ending 31 July 2025 on 4 September 2025. This announcement is significant for stakeholders as it provides insights into the company’s operational performance and market positioning during the quarter.

The most recent analyst rating on (GB:SAFE) stock is a Hold with a £850.00 price target. To see the full list of analyst forecasts on Safestore Holdings stock, see the GB:SAFE Stock Forecast page.

Safestore Director Purchases Significant Shareholding

Safestore Holdings plc announced a transaction involving Jane Bentall, a non-executive director, who purchased 13,700 ordinary shares at a price of £6.885 each on the London Stock Exchange, totaling £94,324.50. This transaction indicates a significant investment by a board member, potentially reflecting confidence in the company’s future performance and stability, which may impact stakeholders’ perceptions positively.

The most recent analyst rating on (GB:SAFE) stock is a Hold with a £850.00 price target. To see the full list of analyst forecasts on Safestore Holdings stock, see the GB:SAFE Stock Forecast page.

Safestore Holdings Reports Resilient H1 2025 Performance Amid Expansion

Safestore Holdings reported a resilient financial performance for the first half of 2025, with a 4.0% increase in group revenue at constant exchange rates. Despite facing inflationary cost pressures, the company achieved growth in its expansion markets and maintained strong cash flows. The company continues to invest in new store developments and strategic joint ventures, like the acquisition of EasyBox in Italy, to drive future growth. The board remains optimistic about meeting full-year expectations, with new store openings expected to contribute significantly to future earnings.

The most recent analyst rating on (GB:SAFE) stock is a Hold with a £900.00 price target. To see the full list of analyst forecasts on Safestore Holdings stock, see the GB:SAFE Stock Forecast page.

Safestore Holdings Announces Board Committee Restructuring

Safestore Holdings plc has announced changes to its board committee memberships to better distribute responsibilities and time commitments among its non-executive members. Gert van de Weerdhof will step down from the Nomination Committee, with Laure Duhot taking his place, while Delphine Mousseau will join the Audit Committee. These adjustments aim to enhance the governance structure and operational efficiency of the company.

The most recent analyst rating on (GB:SAFE) stock is a Hold with a £850.00 price target. To see the full list of analyst forecasts on Safestore Holdings stock, see the GB:SAFE Stock Forecast page.