Big Yellow Group (BYG) AI Stock Analysis

• Market Cap: $1.75B
• Dividend Yield: 4.9%
• Average Volume (3M): 387.83K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.79
• Revenue Growth: 4.34%
• EPS Growth: 33.66%
• Country: UK
• Employees: 503
• Sector: Real Estate
• Sector Strength: 71
• Industry: REIT - Industrial
• EPS (TTM): 1.36
• Shares Outstanding: 196,714,690
• 10 Day Avg. Volume: 375,389
• 30 Day Avg. Volume: 387,835
• PEG Ratio: 0.19
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.12
• Price to Cash Flow (P/CF): N/A
• 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: 1,183.67p
• Price Target Upside: 32.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Big Yellow Group's stock demonstrates a solid overall performance with strong financial health, characterized by high profitability and low leverage. The valuation metrics are attractive with a low P/E ratio and strong dividend yield. Technical analysis presents mixed signals, indicating potential caution in the short term. Recent corporate events reflect positive sentiment but do not significantly impact the overall assessment. The overall score reflects the company's robust financial foundation and attractive valuation, tempered by neutral technical indicators.

Positive Factors

Business Growth

Overall move-ins for the quarter were up 2%, with business move-ins up 9%.

Development Progress

Planning consent was granted for Kensington, Staples Corner and Kentish Town, taking the total number of sites with planning to 10 out of 13 pipeline stores.

Earnings Growth

The company expects to return to earnings growth in H2.

Negative Factors

Dividend Policy

The company was forced to hold the dividend flat due to economic conditions.

Earnings and Sentiment Risk

There is still a risk to both earnings and sentiment ahead of the completion of key developments.

Stock Performance

Big Yellow’s shares have declined some 24.5%, underperforming the UK EPRA Index which has seen values fall 5.3%.

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 generates revenue primarily through the rental of storage units across its numerous facilities strategically located in high-demand urban areas. The company charges customers based on the size of the unit and the duration of the rental agreement, with options ranging from short-term to indefinite storage contracts. Ancillary revenue streams include the sale of packing materials and insurance services for stored goods. Additionally, BYG benefits from strategic partnerships with moving companies and property agencies, which funnel potential clients to their storage services. The company's earnings are further bolstered by its strong brand presence and reputation for high-quality customer service, contributing to a steady flow of new and repeat customers.

Big Yellow Group Financial Statement Overview

Summary

Big Yellow Group displays strong financial health characterized by high profitability, low leverage, and improving cash flow generation. Revenue and profit margins are robust, indicating effective operational management. While the balance sheet is stable with low debt levels, attention is needed on cash conversion efficiency. The company's financial position is resilient, supporting growth and investment opportunities in the REITs sector.

Income Statement

The company demonstrates strong profitability with a high gross profit margin of 71.9% and a significant net profit margin of 120.1% for the latest year. Revenue growth rate is solid at 5.7%, indicating steady expansion. The EBIT margin stands at 64.3%, reflecting efficient core operations, while the EBITDA margin is notably robust at 133.5% due to significant non-cash adjustments. Overall, the income statement suggests excellent profitability and growth potential, though the exceptionally high net profit margin could include extraordinary items that warrant further investigation.

Balance Sheet

The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.17, highlighting low leverage. The return on equity is impressive at 9.8%, showcasing effective use of equity capital. The equity ratio is very healthy at 84.2%, underscoring financial stability. However, the relatively high total liabilities in comparison to total equity suggest potential risks if asset values decline.

Cash Flow

Cash flow analysis shows a stable operating cash flow to net income ratio of 0.44, suggesting good cash conversion from earnings, though slightly below optimal levels. Free cash flow growth is high at 1784.9%, reflecting improved cash generation capabilities. The free cash flow to net income ratio is a solid 0.44. Overall, cash flow metrics highlight a positive trend in cash generation, yet operating cash flow conversion could be improved.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
199.62M	188.83M	171.32M	135.24M	129.31M
	Gross Profit
143.63M	134.52M	120.94M	91.90M	88.81M
	EBIT
128.41M	120.00M	106.98M	81.49M	79.98M
	EBITDA
266.58M	94.66M	708.26M	272.77M	104.42M
	Net Income Common Stockholders
239.83M	73.33M	697.27M	265.19M	92.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.36M	8.33M	8.61M	12.32M	51.42M
	Total Assets
2.91B	2.75B	2.67B	1.84B	1.62B
	Total Debt
408.42M	512.27M	438.66M	353.37M	418.67M
	Net Debt
399.06M	503.94M	430.05M	341.04M	367.25M
	Total Liabilities
459.64M	569.54M	486.00M	388.40M	452.44M
	Stockholders Equity
2.45B	2.18B	2.18B	1.45B	1.16B
Cash Flow		Free Cash Flow
104.79M	5.56M	2.42M	4.39M	10.52M
	Operating Cash Flow
104.79M	111.98M	107.57M	77.40M	74.26M
	Investing Cash Flow
-20.79M	-106.23M	-171.00M	-72.72M	-48.42M
	Financing Cash Flow
-82.98M	-6.02M	59.71M	-43.77M	7.67M

Big Yellow Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 894.00
• 50DMA: Negative
• 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:BYG, the sentiment is Negative. The current price of 894 is below the 20-day moving average (MA) of 917.40, below the 50-day MA of 926.92, and below the 200-day MA of 1071.40, indicating a bearish trend. The MACD of -1.06 indicates Negative momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 51.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	76 Outperform	£1.21B	3.25	17.89%	5.48%	-0.36%	84.97%
BYG	72 Outperform	$1.75B	6.56	10.91%	4.90%	4.34%	33.66%
BLND	65 Neutral	£3.52B	19.35	3.17%	6.47%	-30.83%	―
Sector *	61 Neutral	$4.24B	15.87	-3.65%	12.20%	6.29%	-21.37%
GPE	56 Neutral	£1.15B	―	-1.38%	2.40%	-2.73%	91.05%
LAND	52 Neutral	£3.95B	37.48	1.61%	7.50%	-1.73%	―

Big Yellow Group Corporate Events

Big Yellow Group Updates Share Capital Structure

Big Yellow Group PLC announced that as of March 31, 2025, its issued share capital consists of 196,714,696 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 under these rules.

Big Yellow Group Announces Block Listing of Shares

Big Yellow Group PLC has applied for block listings of 200,000 ordinary shares on the London Stock Exchange, with equal distribution under its Unapproved and Approved Share Option Plans. This move is expected to enhance the company’s financial flexibility and support its growth strategy, with the shares set to be admitted on 27 March 2025.

Big Yellow Group Updates Share Capital and Voting Rights

Big Yellow Group PLC announced that as of 28 February 2025, its issued share capital consists of 196,714,696 ordinary shares with voting rights. This update is in compliance with the UK Financial Conduct Authority’s Disclosure and Transparency Rule 5.6.1, and it informs shareholders of the total number of shares with voting rights, which is crucial for determining their notification requirements under the FCA’s rules.

Big Yellow Group PLC Announces Total Voting Rights

Big Yellow Group PLC has announced its total voting rights as of January 31, 2025, in compliance with the UK Financial Conduct Authority’s Disclosure and Transparency Rule 5.6.1. The company’s issued share capital consists of 196,714,696 ordinary shares with voting rights, and no shares are held in treasury. This information is crucial for shareholders to determine if they need to notify changes in their interests under the relevant regulatory framework.

Big Yellow Group PLC Director Increases Shareholding

Big Yellow Group PLC announced a transaction involving its Non-Executive Director, Michael O’Donnell, who purchased 3,000 ordinary shares of the company on January 22, 2025, at an average price of 945.4662 pence per share. This acquisition increases O’Donnell’s beneficial holding to 9,000 shares, representing 0.005% of the company’s issued share capital, indicating a slight increase in insider ownership which may reflect confidence in the company’s future performance.

Big Yellow Group Reports Revenue Growth and Expansion Plans Amid Market Challenges

Big Yellow Group PLC reported a 2% increase in total revenue for the third quarter of 2024, with year-to-date revenue up by 3%. The company saw improvements in business move-ins and rent per square foot, while managing a slight decline in occupancy. Despite macroeconomic challenges, the group remains confident in its resilience, planning to invest £176 million over the next three years to expand its store portfolio. The company aims to maintain its net debt to EBITDA ratio and projects a modest growth in earnings per share for the full year.

Big Yellow Group PLC to Announce Q3 Financial Results

Big Yellow Group PLC announced that it will release its third-quarter financial results for the period ending 31 December 2024 on 17 January 2025. This announcement is a significant event for stakeholders, potentially influencing market perceptions and investor decisions regarding the company’s performance and future prospects in the self-storage industry.