Safestore Hldgs Net Income jumped on 126% and Revenue surged on 10.8%
08 Jan 2019 • About Safestore Hldgs (
$SAFE) • By InTwits
Safestore Hldgs reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Safestore Hldgs has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.8%. At the same time it's in pair with industry average of 17.0%
- CAPEX is quite volatile: £28m in FY2018, £22m in FY2017, £28m in FY2016, £8m in FY2015, £6m in FY2014
- The company has highly profitable business model: ROIC is 16.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 10.8%. Revenue growth was accelerating on average by 2.3 pp per annum in FY2014-FY2018. Having stable revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 25.2 pp from -416% to -390% in FY2018.
Net Income margin surged on 62.9 pp from 60.3% to 123% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 19.2% in FY2018. The company's CAPEX/Revenue surged on 12.1 pp from 7.2% in FY2015 to 19.2% in FY2018. Average CAPEX/Revenue for the last three years was 20.2%.
Return on investment
The company operates at high and attractive ROE (24.8%) while ROIC is a bit lower (16.5%). ROIC increased on 6.3 pp from 10.3% to 16.5% in FY2018. ROE surged on 12.1 pp from 12.8% to 24.8% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.1x and Debt / EBITDA is 2.1x. Net Debt / EBITDA dropped on 1.1x from 3.2x to 2.1x in FY2018. Debt increased slightly on 1.5% while cash dropped on 84.0%.
Safestore Hldgs has no short term refinancing risk: cash is higher than short term debt (118.0%).
Valuation and dividends
Safestore Hldgs's trades at EV/EBITDA 7.7x and P/E 6.3x.
Financial and operational results
FY ended 31 Oct 2018
Safestore Hldgs ($SAFE) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 97.9 | 104.8 | 115.4 | 129.9 | 143.9 | 10.8% |
| EBITDA | 76.1 | 134.6 | 109.7 | 110.1 | 198.2 | 80.0% |
| Net Income | 46.8 | 108.7 | 87.4 | 78.3 | 177.2 | 126.3% |
Balance Sheet
|
|---|
| Cash | 15.3 | 13.8 | 5.4 | 65.6 | 10.5 | -84.0% |
| Short Term Debt | 8.0 | 7.2 | 9.4 | 9.0 | 8.9 | -1.1% |
| Long Term Debt | 307.6 | 289.4 | 365.2 | 410.8 | 417.1 | 1.5% |
Cash flow
|
|---|
| Capex | 6.2 | 7.5 | 28.3 | 21.7 | 27.7 | 27.6% |
Ratios
|
|---|
| Revenue growth | 1.9% | 7.0% | 10.1% | 12.6% | 10.8% | |
| EBITDA growth | 9.3% | 76.9% | -18.5% | 0.4% | 80.0% | |
|
|---|
| EBITDA Margin | 77.7% | 128.4% | 95.1% | 84.8% | 137.7% | 53.0% |
| Net Income Margin | 47.8% | 103.7% | 75.7% | 60.3% | 123.1% | 62.9% |
| CAPEX, % of revenue | 6.3% | 7.2% | 24.5% | 16.7% | 19.2% | 2.5% |
|
|---|
| ROIC | 10.3% | 17.8% | 12.1% | 10.3% | 16.5% | 6.3% |
| ROE | 12.4% | 24.2% | 16.2% | 12.8% | 24.8% | 12.1% |
| Net Debt/EBITDA | 3.9x | 2.1x | 3.4x | 3.2x | 2.1x | -1.1x |
Peers in Real Estate Investment & Services
Below we provide Safestore Hldgs benchmarking against other companies in Real Estate Investment & Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Plaza Centers Nv ($PLAZ) | 131.0% | -13.4% | -53.3% | 664.4% | |
| PIK Group OJSC ($PIK) | -2.1% | -16.5% | 17.5% | 191.5% | |
| London & Associated Properties ($LAS) | -22.6% | -2.6% | -9.1% | 51.4% | |
| Etalon Group Ltd ($ETLN) | 29.0% | -17.6% | 15.6% | 44.1% | |
| Formation Group ($FRM) | 35.8% | 199.3% | 23.8% | 25.8% | |
| |
|---|
| Median (20 companies) | 0.1% | 5.5% | 7.6% | 8.3% | 32.2% |
|---|
| Safestore Hldgs ($SAFE) | | 7.0% | 10.1% | 12.6% | 10.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arricano Real Estate ($ARO) | 96.5% | 96.1% | 96.4% | 96.5% | |
| Summit Germany Ltd ($SMTG) | | 92.3% | 92.2% | 92.2% | |
| Caledonian Trust ($CNN) | 43.2% | | 50.4% | 80.5% | 74.8% |
| Panther Securities ($PNS) | 68.0% | 73.5% | 75.2% | 70.8% | |
| Songbird Estates ($SBD) | 70.7% | 72.5% | 72.8% | 68.6% | |
| |
|---|
| Median (15 companies) | 38.5% | 34.5% | 42.0% | 31.0% | 42.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Summit Germany Ltd ($SMTG) | 89.3% | 75.5% | 129.4% | 241.4% | |
| Arricano Real Estate ($ARO) | -138.3% | 12.7% | 190.4% | 238.1% | |
| Caledonian Trust ($CNN) | -59.1% | | 17.4% | 191.0% | 316.6% |
| Raven Russia Ltd ($RUS) | 4.7% | -52.3% | 40.4% | 75.8% | |
| Panther Securities ($PNS) | 50.3% | 52.0% | 52.4% | 69.3% | |
| |
|---|
| Median (19 companies) | 16.7% | 24.8% | 28.0% | 20.8% | 56.7% |
|---|
| Safestore Hldgs ($SAFE) | 77.7% | 128.4% | 95.1% | 84.8% | 137.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Panther Securities ($PNS) | 26.0% | 15.7% | 3.7% | 68.6% | |
| Taliesin Property Fund Ltd ($TPFZ) | 45.2% | 43.7% | 37.2% | 40.5% | |
| Hagl JSC ($HAG) | 145.6% | 127.1% | 55.5% | 30.0% | |
| St.Modwen Properties ($SMP) | 36.7% | 55.8% | 31.3% | 19.3% | |
| HALS-Development JSC ($HALS) | 25.0% | 47.3% | 12.7% | 15.8% | |
| |
|---|
| Median (20 companies) | 2.8% | 6.1% | 1.5% | 1.5% | 1.5% |
|---|
| Safestore Hldgs ($SAFE) | 6.3% | 7.2% | 24.5% | 16.7% | 19.2% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arricano Real Estate ($ARO) | -12.3% | 1.7% | 34.2% | 43.8% | |
| Damac Real Estate Development Ltd ($DMC) | 31.3% | 41.5% | 24.5% | 16.0% | |
| Summit Germany Ltd ($SMTG) | 7.1% | 5.6% | 9.2% | 15.8% | |
| Taliesin Property Fund Ltd ($TPFZ) | 0.3% | -3.0% | 15.3% | 15.1% | |
| Etalon Group Ltd ($ETLN) | 14.3% | 10.2% | 6.6% | 12.6% | |
| |
|---|
| Median (20 companies) | 3.2% | 4.9% | 6.4% | 6.4% | 9.0% |
|---|
| Safestore Hldgs ($SAFE) | 10.3% | 17.8% | 12.1% | 10.3% | 16.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Development Securities ($DSC) | 10.3x | 3.5x | 5.7x | 70.8x | 3.9x |
| Hagl JSC ($HAG) | 14.2x | 14.8x | 30.8x | 11.7x | |
| Songbird Estates ($SBD) | | 12.3x | 12.4x | 11.3x | |
| Farglory Land Development Co Ltd ($FLDS) | 5.7x | 4.4x | 4.8x | 8.9x | |
| Panther Securities ($PNS) | 11.8x | 9.7x | 9.4x | 8.5x | |
| |
|---|
| Median (17 companies) | 9.9x | 4.5x | 5.2x | 4.0x | 2.4x |
|---|
| Safestore Hldgs ($SAFE) | 3.9x | 2.1x | 3.4x | 3.2x | 2.1x |
