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Safestay
(LSE:SSTY)
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Rating:46Neutral
Price Target:
13.00 p
▼(-22.39% Downside)
Action:Reiterated
Date:07/02/26
The score is primarily held down by weak financial performance—especially widening losses and sharply higher leverage—despite positive (but declining) operating and free cash flow. Technicals are neutral-to-slightly positive in the short term, but the longer-term trend remains downward, and the negative P/E provides limited valuation support.
Positive Factors
Cash generation
Positive operating and free cash flow in 2025 indicates the core hostel operations generate real cash, supporting working capital, maintenance capex and debt service. That cash resilience provides a durable buffer for near-term operations and gives management flexibility despite weaker accounting earnings.
Negative Factors
High leverage
Very elevated debt-to-equity (~3.35x) materially reduces financial flexibility and raises refinancing and interest-rate risk. High leverage amplifies earnings volatility, constrains investment in properties or marketing, and makes the business more vulnerable to demand shocks or weaker cash flow outcomes.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Positive operating and free cash flow in 2025 indicates the core hostel operations generate real cash, supporting working capital, maintenance capex and debt service. That cash resilience provides a durable buffer for near-term operations and gives management flexibility despite weaker accounting earnings.
Read all positive factors
Safestay (SSTY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£8.77M
Dividend YieldN/A
Average Volume (3M)9.10K
Price to Earnings (P/E)―
Beta (1Y)-0.06
Revenue Growth-8.49%
EPS Growth-1029.93%
CountryUK
Employees283
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)-0.15
Shares Outstanding64,935,420
10 Day Avg. Volume4,966
30 Day Avg. Volume9,097
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.75
Price to Sales (P/S)0.53
P/FCF Ratio4.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Safestay Business Overview & Revenue Model
Company Description
Safestay plc specializes in establishing and running traveler hostels throughout the United Kingdom, all marketed under its distinctive Safestay brand. The company facilitates overnight lodging within properties it owns, while also supplying compl...
How the Company Makes Money
Safestay generates revenue primarily from selling short-stay accommodation across its hostels. The core revenue stream is room revenue from nightly bookings of dormitory beds and private rooms, sold through a mix of direct channels (e.g., the comp...
Safestay Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
34
Negative
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.59M | 22.50M | 21.49M | 18.15M | 5.81M |
| Gross Profit | 12.86M | 18.56M | 17.68M | 12.35M | 877.00K |
| EBITDA | 3.71M | 5.85M | 5.82M | 5.56M | 293.00K |
| Net Income | -10.05M | -891.00K | -1.32M | -149.00K | -7.56M |
Balance Sheet | |||||
| Total Assets | 75.33M | 94.31M | 93.97M | 92.49M | 93.48M |
| Cash, Cash Equivalents and Short-Term Investments | 2.74M | 1.43M | 2.00M | 5.23M | 4.48M |
| Total Debt | 48.31M | 50.44M | 49.33M | 56.24M | 57.96M |
| Total Liabilities | 60.91M | 63.55M | 61.21M | 62.73M | 63.34M |
| Stockholders Equity | 14.43M | 30.76M | 32.76M | 29.76M | 30.13M |
Cash Flow | |||||
| Free Cash Flow | 2.50M | 656.00K | 3.00M | 5.24M | -2.12M |
| Operating Cash Flow | 3.08M | 6.87M | 8.05M | 5.61M | -1.81M |
| Investing Cash Flow | 7.44M | -6.20M | -5.02M | -370.00K | 16.35M |
| Financing Cash Flow | -9.06M | -1.52M | -5.86M | -5.15M | -12.18M |
Safestay Technical Analysis
Neutral
16.75
Price Trends
13.20
Positive
14.36
Negative
16.58
Negative
Market Momentum
0.05
Positive
57.81
Neutral
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SSTY, the sentiment is Neutral. The current price of 16.75 is above the 20-day moving average (MA) of 13.50, above the 50-day MA of 13.20, and above the 200-day MA of 16.58, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SSTY.
Safestay Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £662.74M | 24.80 | 14.67% | 3.54% | 12.84% | -12.86% | |
67 Neutral | £376.76M | 18.51 | 5.14% | 2.81% | 5.71% | -19.77% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £133.76M | 22.61 | 9.72% | 0.60% | 3.16% | -21.30% | |
58 Neutral | £335.47M | 4.56 | 9.30% | ― | -0.52% | 68.53% | |
54 Neutral | £670.58M | 47.45 | 4.65% | 1.84% | 5.33% | -53.26% | |
46 Neutral | £8.77M | -0.88 | -1.56% | ― | -8.49% | -1029.93% |
* Consumer Cyclical Sector Average
GB:SSTY
Safestay
13.50
-11.00
-44.90%
GB:FSTA
Fuller Smith & Turner
716.00
155.18
27.67%
GB:HSW
Hostelworld
108.00
-30.90
-22.25%
GB:MARS
Marston's
53.00
10.95
26.04%
GB:XPS
XPS Pensions Group Plc
321.00
-31.59
-8.96%
GB:PPH
PPHE Hotel
1,602.00
31.95
2.03%
Safestay Corporate Events
Business Operations and StrategyM&A Transactions
Safestay sells Glasgow freehold as it advances asset-light growth strategy
Positive
Jul 1, 2026
Safestay plc, a pan-European operator of premium contemporary hostels, focuses on providing safe, inclusive and design-led accommodation in prime urban locations across the UK and Europe. Its network spans countries including Spain, Italy, Portuga...
Business Operations and StrategyFinancial Disclosures
Safestay cuts debt and reshapes portfolio as tough trading drives deeper loss
Negative
Jun 29, 2026
Safestay reported 2025 revenue of £20.6 million and adjusted EBITDA of £3.7 million, down from the prior year amid a challenging trading environment and inflationary cost pressures, leading to a £10.1 million post-tax loss driven in...
Business Operations and StrategyFinancial Disclosures
Safestay to Exit Loss-Making Berlin Kurfürstendamm Site and Wind Up Subsidiary
Neutral
Jun 4, 2026
Safestay plc will exit its Berlin Kurfürstendamm hotel after the landlord served notice to terminate the lease ahead of its scheduled expiry at the end of 2026. Operations at the loss-making site, which is run through indirect subsidiary Hote...
Business Operations and StrategyM&A Transactions
Safestay Sells Glasgow Hostel Freehold for £5.1m to Bolster Balance Sheet
Positive
Jun 1, 2026
Safestay has agreed conditional terms to sell its freehold Safestay Glasgow Charing Cross property and hostel to an independent investor for £5.1 million, with completion expected by late August 2026 subject to lender approval. The group will...
Business Operations and Strategy
Safestay Links With India’s Zostel in Capital-Light Hostel Alliance
Positive
May 12, 2026
Safestay has entered a strategic marketing partnership with Zostel, India’s largest hostel network, to cross-list 82 Zostel hostels on Safestay’s platform and 24 Safestay properties on Zostel’s site, creating an alliance of more ...
Business Operations and StrategyExecutive/Board Changes
Safestay names new COO to steer hostel group’s next growth phase
Positive
May 11, 2026
Safestay plc, a major player in Europe’s premium hostel sector, operates a pan-European portfolio spanning 21 hostels and one hotel across 11 countries, serving a wide range of budget-conscious travellers in the expanding global hostel marke...
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.