SafestayLSE:SSTY 45 Operating Margin % is 7.50% as of Jun. 2025, which is 28% below its 10-year median of 10.48. GuruFocus rates LSE:SSTY with a GF Score™ of 45/100 and a GF Value™ of £0.28 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 844 Travel & Leisure companies, Safestay ranks better than 56.64% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Safestay's Operating Income for the
six
months ended in Jun. 2025 was £0.76 Mil. Safestay's Revenue for the
six
months ended in Jun. 2025 was £10.07 Mil. Therefore, Safestay's Operating Margin % for the quarter that ended in Jun. 2025 was 7.50%.
The historical rank and industry rank for Safestay's Operating Margin % or its related term are showing as below:
LSE:SSTY'
s Operating Margin % Range Over the Past 10 Years
Min: -209.13 Med: 10.48 Max: 16.14
Current: 10.22
LSE:SSTY's Operating Margin % is ranked better than 56.64% of 844
companies
in the Travel & Leisure industry
Industry Median: 8.135
vs LSE:SSTY: 10.22
Safestay's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Safestay's Operating Income for the
six
months ended in Jun. 2025 was £0.76 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2025 was £2.24 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Safestay Operating Margin % Related Terms
Safestay Operating Margin % Historical Data
* Premium members only.
The historical data trend for Safestay's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:SSTY vs MAR, HLT, H: Operating Margin % Comparison
For the Lodging subindustry, Safestay's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Safestay Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Safestay's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Safestay's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Safestay's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Safestay (LSE:SSTY) has a Operating Margin % of 7.50% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Safestay and its competitors. This is 28% below median its historical median of 10.48. According to the industry distribution chart, Safestay ranks #366 out of 844 companies in the Travel & Leisure industry, placing it in the top 43.4%.
Is Safestay's Operating Margin % too high?
Safestay's current Operating Margin % of 7.50% is 28% below median its 10-year median of 10.48. The Travel & Leisure industry median Operating Margin % is 8.14. Safestay's value of 7.50% is 7.8% below this industry median. Based on the distribution chart, Safestay ranks #366 out of 844 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Safestay has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Safestay's Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Safestay ranks #366 out of 844 companies for Operating Margin %. This puts Safestay in the upper half of its industry. The industry median Operating Margin % is 8.14. Safestay's value of 7.50% is 7.8% below this benchmark. While the company's 10-year median is 10.48 vs. the industry median of 8.14, Safestay has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Safestay's current Operating Margin % of 7.50% is 7.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Safestay and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Safestay's current Operating Margin % is 7.50%, which is 28% below median its own 10-year median of 10.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safestay stock overvalued right now?
Based on GuruFocus' analysis, Safestay (LSE:SSTY) is currently considered Possible Value Trap. The stock's GF Value™ is £0.28, compared to a current price of £0.14 — trading 51.8% below its estimated fair value. The current Operating Margin % is 7.50%, which is 28% below median its 10-year median of 10.48 and 7.8% below the Travel & Leisure industry median of 8.14. Safestay's overall GF Score™ is 45/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Safestay (LSE:SSTY), the current Operating Margin % is 7.50% as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Safestay (LSE:SSTY) Overvalued in 2026?
Based on GuruFocus' analysis, Safestay stock appears to be undervalued.
The current stock price of £0.14 is trading 51.8% below its estimated GF Value™ of £0.28.
GuruFocus considers Safestay to be Possible Value Trap.
Key valuation signals for LSE:SSTY:
Operating Margin %: 7.50% (28% below median its 10-year median of 10.48)
GF Value™: £0.28 vs. price of £0.14 (51.8% below fair value)
Industry Position: 7.8% below the Travel & Leisure median (#366 of 844)
No single metric tells the full story. See the LSE:SSTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Safestay PLC owns and operates a luxurious hostel group in the United Kingdom. It operates backpacker tourist hostels under the Safestay brand. Its property portfolio includes Safestay London Elephant and Castle, Glasgow Charing Cross, Brussels Grand Place. and York among others providing four, six, eight, and twelve bunk bedded dorms with en-suite facilities, as well as single, twin, double, and family bunk rooms with tea and coffee making facilities and televisions. The company operates in the segment of hostel accommodation in the UK and Europe. It generates revenue through various products and services such as Hostel accommodation, which derives key revenue, Food and Beverage sales, and Others. Geographically, it generates a vast majority of its revenue from the United Kingdom.
45GF Score
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