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Safestay (SSTY) AI Stock Analysis
Safestay
(LSE:SSTY)
The overall score is heavily pressured by the company's deteriorating financial performance, marked by declining revenue, collapsing margins, and a highly leveraged balance sheet with weak debt coverage. The technical picture reinforces this weakness with a clear downtrend across all major moving averages. The negative P/E ratio confirms the lack of earnings power, leaving no valuation support. The primary risk is the company's ability to service its substantial debt amid operational losses.
Safestay (SSTY) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 3.90M
- Dividend Yield
- ―
- Average Volume (3M)
- 14.99K
- Price to Earnings (P/E)
- -0.3
- Beta (1Y)
- -0.64
- Revenue Growth
- -13.56%
- EPS Growth
- -2481.08%
- Country
- UK
- Employees
- 305
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Travel Lodging
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 compleme...
How the Company Makes Money
Safestay makes money primarily by selling accommodation to guests across its hostel portfolio. The core revenue stream is room revenue from nightly stays, which includes sales of beds in shared dormitories and private rooms; pricing generally varies...
Safestay Financial Statement Overview
Summary
Financial health is severely strained. Revenue declined 5.9%, gross margins collapsed from 82.5% to 62.5%, and the company swung to an operating loss. The balance sheet is highly leveraged with a debt-to-equity ratio of 3.35 and deeply negative return on equity. While operating cash flow remains positive, it covers only 40% of debt obligations, indicating significant liquidity risk.
Income Statement
22NegativeBalance Sheet
15Very NegativeCash Flow
28Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.91M | 20.59M | 22.50M | 21.49M | 18.15M | 5.81M |
| Gross Profit | 11.07M | 12.86M | 18.56M | 17.68M | 12.35M | 877.00K |
| EBITDA | 2.00M | 3.71M | 5.85M | 5.82M | 5.49M | 293.00K |
| Net Income | -12.40M | -10.05M | -891.00K | -1.32M | -149.00K | -7.56M |
Balance Sheet | ||||||
| Total Assets | 71.70M | 75.33M | 94.31M | 93.97M | 92.49M | 93.48M |
| Cash, Cash Equivalents and Short-Term Investments | 4.64M | 2.74M | 1.43M | 2.00M | 5.23M | 4.48M |
| Total Debt | 39.17M | 48.31M | 50.44M | 49.33M | 56.24M | 57.96M |
| Total Liabilities | 58.73M | 60.91M | 63.55M | 61.21M | 62.73M | 63.34M |
| Stockholders Equity | 12.96M | 14.43M | 30.76M | 32.76M | 29.76M | 30.13M |
Cash Flow | ||||||
| Free Cash Flow | -619.00K | 2.50M | 656.00K | 3.00M | 5.24M | -2.12M |
| Operating Cash Flow | 1.07M | 3.08M | 6.87M | 8.05M | 5.61M | -1.81M |
| Investing Cash Flow | 11.43M | 7.44M | -6.20M | -5.02M | -370.00K | 16.35M |
| Financing Cash Flow | -9.46M | -9.06M | -1.52M | -5.86M | -5.15M | -12.18M |
Safestay Technical Analysis
Price Trends
Market Momentum
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 6.00 is below the 20-day moving average (MA) of 7.88, below the 50-day MA of 10.17, and below the 200-day MA of 13.39, indicating a bearish trend. The MACD of -1.12 indicates Positive momentum. The RSI at 1.77 is Positive, neither overbought nor oversold. The STOCH value of 25.00 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
Overall Rating
GB:XPS76Outperform
GB:HSW70Outperform
GB:MARS64Neutral
GB:FSTA59Neutral
GB:PPH55Neutral- GB:SSTY40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:XPS | 76Outperform | GBP 708.16M | 26.75 | 15.48% | 3.85% | 12.84% | -11.56% |
| GB:HSW | 70Outperform | GBP 101.56M | 19.07 | 8.85% | 2.54% | 11.27% | -13.59% |
| GB:MARS | 64Neutral | GBP 357.26M | 4.89 | 9.30% | ― | -0.52% | 68.53% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| GB:FSTA | 59Neutral | GBP 422.04M | 20.77 | 5.14% | 2.62% | 5.71% | -19.77% |
| GB:PPH | 55Neutral | GBP 640.94M | 4.16 | 40.35% | 2.55% | 5.33% | 602.34% |
| GB:SSTY | 40Underperform | GBP 3.90M | -0.32 | -90.56% | ― | -13.56% | -2481.08% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:SSTY | Safestay plc | 6.00 | -14.50 | -70.73% | |
| GB:FSTA | Fuller Smith & Turner | 810.00 | 210.37 | 35.08% | |
| GB:HSW | Hostelworld Group plc | 82.00 | -44.15 | -35.00% | |
| GB:MARS | Marston's (MARS) | 56.10 | 9.70 | 20.91% | |
| GB:XPS | XPS Pensions Group Plc | 343.00 | 15.88 | 4.85% | |
| GB:PPH | PPHE Hotel | 1530.00 | 118.80 | 8.42% |
Safestay Corporate Events
Safestay Reshapes Board as Major Shareholder’s Director Becomes Executive Chairman
PositiveSafestay plc has announced a leadership transition with the retirement of long-serving Executive Chairman Larry Lipman, who is stepping down from the board after more than 15 years with the company. Lipman will remain a supportive shareholder, unders...
Safestay Sells London Kensington Hostel to Advance Asset-Light Strategy
PositiveSafestay has completed the £3.0 million sale of its leasehold interest and associated hostel business at Safestay London Kensington Holland Park to Acerhawk Limited. The property will no longer trade under the Safestay brand, marking the group&#...
Safestay strengthens balance sheet as tough trading prompts portfolio reshuffle
NegativeSafestay reported a 10.6% year-on-year fall in revenue from continuing operations to £8.4 million for the first half of 2026, with adjusted EBITDA dropping to £0.6 million and the group moving to a £1.9 million post-tax loss. Despite w...
Safestay shareholders back all AGM resolutions as hostel market expands
PositiveSafestay plc has confirmed that all resolutions proposed at its Annual General Meeting, held on 12 August 2026 in London, were approved by shareholders on a poll. The clean passage of the AGM agenda signals continued shareholder support for the board...
Safestay sells London Kensington Holland Park hostel in £3m balance‑sheet strengthening deal
PositiveSafestay has agreed to sell its leasehold interest and operating business at Safestay London Kensington Holland Park to Acerhawk Limited for £3.0 million, with completion expected by the end of October 2026. The hostel, operated under a long lea...
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.
Date of analysis: Sep 25, 2026