Safestore Hldgs reports 39.7% CAPEX growth in 2019 and 5.5% Revenue growth
07 Jan 2020 • About Safestore Hldgs (
$SAFE) • By InTwits
Safestore Hldgs reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- Safestore Hldgs has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.6%. At the same time it's in pair with industry average of 17.7%
- CAPEX is quite volatile: £39m in FY2019, £28m in FY2018, £22m in FY2017, £28m in FY2016, £8m in FY2015
- The company has highly profitable business model: ROIC is 12.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Safestore Hldgs's Revenue increased on 5.5%. During FY2015-FY2019 Revenue growth topped in FY2017 at 12.6% and was decelerating since that time. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 29.4 pp from 138% to 108% in FY2019.
Net Income margin dropped on 36.1 pp from 123% to 87.0% in FY2019.
Investments (CAPEX, working capital and M&A)
Safestore Hldgs's CAPEX/Revenue was 25.5% in FY2019. CAPEX/Revenue increased slightly on 0.97 pp from 24.5% in FY2016 to 25.5% in FY2019. For the last three years the average CAPEX/Revenue was 20.5%.
Return on investment
The company operates at good ROIC (12.1%) and ROE (15.8%). ROIC decreased on 4.4 pp from 16.5% to 12.1% in FY2019. ROE decreased on 9.1 pp from 24.8% to 15.8% in FY2019.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 2.9x. Net Debt / EBITDA surged on 0.6x from 2.1x to 2.7x in FY2019. Debt surged on 11.9% while cash surged on 216%.
Safestore Hldgs has no short term refinancing risk: cash is higher than short term debt (342.3%).
Valuation and dividends
The company's trades at EV/EBITDA 12.4x and P/E 12.1x.
Financial and operational results
FY ended 30 Nov -0001
Safestore Hldgs ($SAFE) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 104.8 | 115.4 | 129.9 | 143.9 | 151.8 | 5.5% |
| EBITDA | 134.6 | 109.7 | 110.1 | 198.2 | 164.4 | -17.1% |
| Net Income | 108.7 | 87.4 | 78.3 | 177.2 | 132.1 | -25.5% |
Balance Sheet
|
|---|
| Cash | 13.8 | 5.4 | 65.6 | 10.5 | 33.2 | 216.2% |
| Short Term Debt | 7.2 | 9.4 | 9.0 | 8.9 | 9.7 | 9.0% |
| Long Term Debt | 289.4 | 365.2 | 410.8 | 417.1 | 466.8 | 11.9% |
Cash flow
|
|---|
| Capex | 7.5 | 28.3 | 21.7 | 27.7 | 38.7 | 39.7% |
Ratios
|
|---|
| Revenue growth | 7.0% | 10.1% | 12.6% | 10.8% | 5.5% | |
| EBITDA growth | 76.9% | -18.5% | 0.4% | 80.0% | -17.1% | |
|
|---|
| EBITDA Margin | 128.4% | 95.1% | 84.8% | 137.7% | 108.3% | -29.4% |
| Net Income Margin | 103.7% | 75.7% | 60.3% | 123.1% | 87.0% | -36.1% |
| CAPEX, % of revenue | 7.2% | 24.5% | 16.7% | 19.2% | 25.5% | 6.2% |
|
|---|
| ROIC | 17.8% | 12.1% | 10.3% | 16.5% | 12.1% | -4.4% |
| ROE | 24.2% | 16.2% | 12.8% | 24.8% | 15.8% | -9.1% |
| Net Debt/EBITDA | 2.1x | 3.4x | 3.2x | 2.1x | 2.7x | 0.6x |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caledonian Trust ($CNN) | | 6.0% | -29.7% | 65.9% | -4.3% |
| Development Securities ($DSC) | 156.8% | 18.9% | -48.8% | 40.1% | |
| St.Modwen Properties ($SMP) | 7.9% | 0.1% | 10.7% | 36.9% | |
| Hml Hldgs ($HMLH) | 16.7% | 7.8% | 12.6% | 24.2% | |
| Formation Group ($FRM) | 199.3% | 23.8% | 25.8% | 4.4% | |
| |
|---|
| Median (7 companies) | 6.7% | 7.6% | 8.3% | 24.2% | -4.3% |
|---|
| Safestore Hldgs ($SAFE) | | 10.1% | 12.6% | 10.8% | 5.5% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caledonian Trust ($CNN) | | 50.4% | 80.5% | 74.8% | 52.8% |
| Damac Real Estate Development Ltd ($DMC) | 59.4% | 55.9% | 48.8% | 34.6% | |
| Safeland ($SAF) | 26.9% | 33.7% | 18.9% | 10.5% | |
| Formation Group ($FRM) | 6.3% | 9.9% | 5.9% | 2.5% | |
| |
|---|
| Median (4 companies) | 34.5% | 42.0% | 31.0% | 22.6% | 52.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caledonian Trust ($CNN) | | 17.4% | 191.0% | 316.6% | 238.5% |
| Safeland ($SAF) | 65.8% | 28.0% | 15.2% | 94.0% | |
| St.Modwen Properties ($SMP) | 47.8% | 32.8% | 28.6% | 21.3% | |
| Damac Real Estate Development Ltd ($DMC) | 53.5% | 52.2% | 38.5% | 20.8% | |
| Development Securities ($DSC) | 20.3% | 12.3% | 1.7% | 19.5% | |
| |
|---|
| Median (7 companies) | 24.8% | 28.0% | 20.8% | 20.8% | 238.5% |
|---|
| Safestore Hldgs ($SAFE) | 128.4% | 95.1% | 84.8% | 137.7% | 108.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| St.Modwen Properties ($SMP) | 55.8% | 31.3% | 19.3% | 25.8% | |
| Hml Hldgs ($HMLH) | 3.1% | 1.5% | 1.5% | 1.6% | |
| Safeland ($SAF) | 19.5% | 0.5% | 1.1% | 1.5% | |
| Development Securities ($DSC) | 24.6% | 2.9% | 2.5% | 1.4% | |
| Caledonian Trust ($CNN) | | 0.3% | 1.6% | 0.3% | 0.5% |
| |
|---|
| Median (7 companies) | 6.1% | 1.5% | 1.5% | 1.4% | 0.5% |
|---|
| Safestore Hldgs ($SAFE) | 7.2% | 24.5% | 16.7% | 19.2% | 25.5% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caledonian Trust ($CNN) | | 0.6% | 4.7% | 11.7% | 7.6% |
| Hml Hldgs ($HMLH) | 12.5% | 11.3% | 9.6% | 9.1% | |
| Safeland ($SAF) | 31.2% | 22.5% | 6.7% | 8.9% | |
| Damac Real Estate Development Ltd ($DMC) | 41.5% | 24.5% | 16.0% | 6.5% | |
| St.Modwen Properties ($SMP) | 10.7% | 6.3% | 5.9% | 6.3% | |
| |
|---|
| Median (9 companies) | 4.9% | 6.4% | 6.4% | 6.5% | 7.6% |
|---|
| Safestore Hldgs ($SAFE) | 17.8% | 12.1% | 10.3% | 16.5% | 12.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Development Securities ($DSC) | 3.5x | 5.7x | 70.8x | 3.9x | |
| Safeland ($SAF) | 1.2x | 1.3x | 1.2x | 3.4x | |
| St.Modwen Properties ($SMP) | 3.7x | 5.5x | 5.4x | 3.0x | |
| Caledonian Trust ($CNN) | | 25.7x | 4.0x | 1.4x | 2.3x |
| Hml Hldgs ($HMLH) | 0.4x | 0.5x | 1.3x | 0.6x | |
| |
|---|
| Median (6 companies) | 4.5x | 5.2x | 4.0x | 2.2x | 2.3x |
|---|
| Safestore Hldgs ($SAFE) | 2.1x | 3.4x | 3.2x | 2.1x | 2.7x |
