Safestay (SSTY) AI Stock Analysis

• Market Cap: £13.31M
• Dividend Yield: N/A
• Average Volume (3M): 9.10K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.28
• Revenue Growth: 0.82%
• EPS Growth: -27.59%
• Country: UK
• Employees: 283
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): -0.01
• Shares Outstanding: 64,935,420
• 10 Day Avg. Volume: 4,966
• 30 Day Avg. Volume: 9,097
• PEG Ratio: 0.55
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 24.75
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: 22.50p ▲(9.76% Upside)

The overall stock score reflects significant challenges, primarily due to ongoing profitability issues and bearish technical indicators. While there is strong cash flow generation and revenue recovery, the high leverage and negative P/E ratio are major concerns. The lack of earnings call data and corporate events further limits positive influences on the score.

Safestay Business Overview & Revenue Model

Company Description

Safestay (SSTY) is a hospitality company that operates a chain of budget-friendly hostels and hotels across Europe. Catering primarily to young travelers, backpackers, and groups, Safestay offers a range of accommodations that include dormitory-style rooms and private en-suite options. The company emphasizes social experiences and affordability, providing amenities such as communal kitchens, lounges, and event spaces to enhance guest interaction and engagement.

How the Company Makes Money

Safestay generates revenue through multiple streams, primarily by charging for overnight accommodations in its hostels and hotels. Key revenue streams include room bookings, which account for the bulk of earnings, as well as additional income from food and beverage sales, merchandise, and offering premium services such as private rooms and event hosting. The company may also benefit from partnerships with travel agencies and online booking platforms, enhancing visibility and driving more bookings through commission-based agreements. Seasonal promotions and group bookings further contribute to revenue, particularly during peak travel times.

Safestay Financial Statement Overview

Summary

Safestay shows strong revenue recovery and operational improvements, with increasing EBIT and EBITDA margins. However, ongoing net losses and high leverage remain concerns. Strong cash flow generation supports operations and investments, though profitability and leverage need addressing for sustainable growth.

Income Statement

Safestay has shown a consistent recovery in revenue post-pandemic, with a revenue growth rate of 4.67% from 2023 to 2024. The gross profit margin improved to 82.49% in 2024 from 82.28% in 2023, indicating efficient cost management. However, the net profit margin remains negative due to consecutive net losses, despite an increase in EBIT and EBITDA margins, which suggests improving operational performance but lingering profitability challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively high at approximately 1.64 in 2024, indicating significant leverage. The equity ratio is stable at 32.62%, which reflects a balanced asset financing structure. However, return on equity remains negative due to ongoing net losses, indicating pressure on shareholder returns despite improved equity levels.

Cash Flow

Safestay's operating cash flow is robust, covering net income losses, with an operating cash flow to net income ratio of 7.71 in 2024. Free cash flow to net income ratio is also positive at 0.74, suggesting strong cash generation. However, free cash flow growth is inconsistent, impacted by capital expenditures, which presents a challenge for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.88M	22.50M	21.49M	18.15M	5.81M	3.38M
Gross Profit	14.84M	18.56M	17.68M	12.35M	877.00K	-1.48M
EBITDA	6.68M	5.85M	5.82M	5.56M	293.00K	-2.59M
Net Income	-483.00K	-891.00K	-1.32M	-149.00K	-7.56M	-7.52M
Balance Sheet
Total Assets	93.44M	94.31M	93.97M	92.49M	93.48M	110.73M
Cash, Cash Equivalents and Short-Term Investments	1.69M	1.43M	2.00M	5.23M	4.48M	2.13M
Total Debt	49.67M	50.44M	49.33M	56.24M	57.96M	79.38M
Total Liabilities	62.36M	63.55M	61.21M	62.73M	63.34M	83.88M
Stockholders Equity	31.08M	30.76M	32.76M	29.76M	30.13M	26.85M
Cash Flow
Free Cash Flow	3.06M	656.00K	3.00M	5.24M	-2.12M	-5.99M
Operating Cash Flow	3.78M	6.87M	8.05M	5.61M	-1.81M	-4.97M
Investing Cash Flow	-801.00K	-6.20M	-5.02M	-370.00K	16.35M	-3.53M
Financing Cash Flow	-3.52M	-1.52M	-5.86M	-5.15M	-12.18M	7.05M

Safestay Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SSTY, the sentiment is Negative. The current price of 20.5 is above the 20-day moving average (MA) of 20.45, below the 50-day MA of 21.41, and below the 200-day MA of 22.12, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 0.64 is Positive, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SSTY.

Safestay Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	75 Outperform	£1.43B	8.52	6.90%	―	1.95%	275.56%
HSW	71 Outperform	£158.65M	24.66	11.33%	0.57%	-3.82%	-51.23%
FSTA	70 Neutral	£331.52M	12.93	6.45%	3.21%	4.79%	223.72%
JDW	64 Neutral	£683.68M	10.69	17.81%	1.75%	4.52%	50.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
YNGA	58 Neutral	£440.85M	49.24	1.27%	3.02%	24.95%	-16.86%
SSTY	49 Neutral	£13.31M	-27.70	-2.90%	―	0.82%	-27.59%

Safestay Corporate Events

Safestay PLC Reports Resilient H1 2025 Amidst Challenging Market Conditions

Safestay PLC reported a resilient performance in its interim results for the first half of 2025 despite a challenging trading environment. Revenue from continuing operations decreased slightly to £10.1 million, with a decline in EBITDA due to increased staff costs and operational expenses. The company saw a marginal increase in bed nights sold and continued its strategic expansion with new hostels planned in Brighton, Naples, and Austria. Despite facing significant price pressures affecting revenue, Safestay remains optimistic about its long-term prospects and is exploring further expansion opportunities.

The most recent analyst rating on (GB:SSTY) stock is a Hold with a £22.50 price target. To see the full list of analyst forecasts on Safestay stock, see the GB:SSTY Stock Forecast page.

Safestay PLC Reports Resilient H1 2025 Amidst Challenging Market Conditions

Safestay PLC reported a resilient performance in the first half of 2025 despite a challenging trading environment in the European hostel market. The company saw a slight decline in revenue and adjusted EBITDA due to increased operational costs and competitive pricing pressures. However, strategic expansion continued with new hostels planned in Brighton, Naples, and Austria, and a first franchise agreement in Austria. The company remains optimistic about its long-term prospects and is exploring further expansion opportunities, despite expecting lower revenue for the full year compared to 2024.

The most recent analyst rating on (GB:SSTY) stock is a Hold with a £22.50 price target. To see the full list of analyst forecasts on Safestay stock, see the GB:SSTY Stock Forecast page.

Safestay PLC Expands into Austrian Alpine Market with First Franchise Agreement

Safestay PLC has signed its first franchise agreement with Sycomore Entwicklungen GmbH to operate two properties in Kitzbühel, Austria, under the Safestay brand. This move aligns with Safestay’s strategy for capital-light expansion and aims to broaden its market reach beyond city centers to alpine resorts. The agreement, effective from September 2025, will see the properties rebranded and integrated into Safestay’s sales and marketing platform, benefiting from its operational expertise and infrastructure. This strategic partnership is expected to enhance Safestay’s presence in the hostel market, offering financial growth opportunities while providing Sycomore with access to Safestay’s established systems and support services.