Safestore Holdings (SAFE) AI Stock Analysis

• Market Cap: £1.56B
• Dividend Yield: 4.27%
• Average Volume (3M): 592.40K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.32
• Revenue Growth: 1.66%
• EPS Growth: 11.42%
• Country: UK
• Employees: 804
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 1.70
• Shares Outstanding: 218,490,500
• 10 Day Avg. Volume: 583,592
• 30 Day Avg. Volume: 592,400
• PEG Ratio: 0.06
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 7.90
• P/FCF Ratio: -72.98
• 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: £680.00
• Price Target Upside: -4.90% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 83 Outperform
• Price Target: 835.00p ▲(16.78% Upside)

Safestore Holdings scores highly due to its strong technical indicators and attractive valuation, with a low P/E ratio and high dividend yield. While financial performance is solid, the recent dip in revenue and negative free cash flow are areas to monitor. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Business Model Strength

Safestore's business model of renting storage units provides a stable and recurring revenue stream, supported by diverse customer needs for personal and business storage solutions.

Competitive Advantages

A wide network of facilities across key regions offers a competitive edge, enabling Safestore to capture a broad customer base and benefit from economies of scale.

Balance Sheet Health

A strong equity base and effective debt management indicate financial stability, providing Safestore with resilience and flexibility for future growth and investment.

Negative Factors

Revenue Growth Concerns

A recent decline in revenue growth and negative free cash flow could signal challenges in maintaining growth momentum, potentially impacting long-term financial performance.

Free Cash Flow Challenges

Negative free cash flow may limit Safestore's ability to invest in expansion or reduce debt, posing a risk to its financial flexibility and growth strategy.

Revenue Growth Rate Decline

A declining revenue growth rate could indicate market saturation or competitive pressures, necessitating strategic adjustments to sustain long-term growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	226.90M	223.50M	224.20M	212.50M	186.80M	162.30M
Gross Profit	150.00M	149.80M	154.30M	149.50M	129.90M	106.00M
EBITDA	134.00M	425.80M	229.50M	124.50M	102.20M	87.20M
Net Income	294.80M	372.30M	200.20M	462.90M	382.00M	178.00M
Balance Sheet
Total Assets	3.52B	3.36B	2.96B	2.71B	2.12B	1.70B
Cash, Cash Equivalents and Short-Term Investments	16.90M	25.30M	16.90M	20.90M	43.20M	19.60M
Total Debt	1.03B	924.80M	827.20M	719.20M	567.00M	531.70M
Total Liabilities	1.26B	1.13B	1.02B	914.10M	742.40M	665.50M
Stockholders Equity	2.27B	2.23B	1.94B	1.79B	1.37B	1.04B
Cash Flow
Free Cash Flow	91.10M	-24.20M	-23.90M	13.60M	96.00M	74.40M
Operating Cash Flow	91.70M	95.90M	98.00M	109.80M	97.00M	75.70M
Investing Cash Flow	-160.60M	-122.60M	-124.20M	-200.90M	-66.20M	-77.60M
Financing Cash Flow	70.70M	35.40M	22.30M	69.00M	-6.30M	-12.00M

Safestore Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 715.00
• 50DMA: Positive
• 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 Positive. The current price of 715 is above the 20-day moving average (MA) of 711.43, above the 50-day MA of 669.81, and above the 200-day MA of 632.10, indicating a bullish trend. The MACD of 18.54 indicates Positive momentum. The RSI at 54.03 is Neutral, neither overbought nor oversold. The STOCH value of 45.11 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
SAFE	―	£1.56B	5.30	13.69%	4.27%	1.66%	11.42%
LMP	―	£4.44B	11.15	8.66%	6.41%	122.74%	60.58%
BBOX	―	£4.06B	8.76	9.42%	5.22%	35.06%	127.62%
BYG	―	$2.18B	10.77	8.06%	4.17%	2.44%	-18.76%
SRE	―	£1.53B	10.02	11.42%	4.73%	7.20%	34.17%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
WKP	―	£803.63M	148.75	0.35%	6.79%	0.49%	―

Safestore Holdings Corporate Events

Safestore Holdings CFO Acquires Shares, Signaling Confidence in Company’s Growth

Safestore Holdings plc announced a transaction involving its Chief Financial Officer, Simon Clinton, who purchased 4,656 ordinary shares at a price of £6.44325 each, totaling £29,999.78, on the London Stock Exchange. This transaction reflects the confidence of the company’s management in its financial stability and future growth prospects, potentially reassuring stakeholders and investors about the company’s market positioning.

The most recent analyst rating on (GB:SAFE) stock is a Buy with a £724.00 price target. To see the full list of analyst forecasts on Safestore Holdings stock, see the GB:SAFE Stock Forecast page.

Safestore Holdings Reports Strong Q3 Revenue Growth

Safestore Holdings plc reported a 5.7% increase in group revenue for the third quarter of 2025, driven by growth in both like-for-like and new store openings across all markets. The company opened new stores in Brussels and Paris, contributing to its development pipeline, and entered a new €77.5 million loan to refinance part of its existing credit facility. The positive trajectory in the UK market was supported by strong domestic demand and unit partitioning, while expansion markets saw a significant 13% revenue increase.

The most recent analyst rating on (GB:SAFE) stock is a Sell with a £6.75 price target. To see the full list of analyst forecasts on Safestore Holdings stock, see the GB:SAFE Stock Forecast page.

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.