DB:CWB

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Dixons Carphone

Executive Summary

Dixons Carphone plc operates as a consumer electrical and mobile retailer and services company.


Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Dixons Carphone's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CWB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

CWB

4.1%

DE Specialty Retail

2.2%

DE Market


1 Year Return

-29.5%

CWB

1.5%

DE Specialty Retail

5.6%

DE Market

Return vs Industry: CWB underperformed the German Specialty Retail industry which returned -0.1% over the past year.

Return vs Market: CWB underperformed the German Market which returned 3.4% over the past year.


Shareholder returns

CWBIndustryMarket
7 Day-1.0%4.1%2.2%
30 Day-3.9%10.4%7.3%
90 Day25.3%27.8%22.1%
1 Year-25.4%-29.5%1.8%1.5%7.9%5.6%
3 Year-63.0%-68.9%-19.2%-23.3%4.5%-3.8%
5 Year-82.3%-85.8%-11.3%-54.6%12.5%-2.7%

Price Volatility Vs. Market

How volatile is Dixons Carphone's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dixons Carphone undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWB (€0.93) is trading below our estimate of fair value (€3.65)

Significantly Below Fair Value: CWB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CWB is good value based on its PE Ratio (11.5x) compared to the XE Specialty Retail industry average (13x).

PE vs Market: CWB is good value based on its PE Ratio (11.5x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: CWB is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: CWB is good value based on its PB Ratio (0.4x) compared to the DE Specialty Retail industry average (1x).


Next Steps

Future Growth

How is Dixons Carphone forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

72.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWB's forecast earnings growth (72.2% per year) is above the savings rate (0.2%).

Earnings vs Market: CWB's earnings (72.2% per year) are forecast to grow faster than the German market (22.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CWB's revenue is expected to decline over the next 3 years (-2.8% per year).

High Growth Revenue: CWB's revenue is forecast to decline over the next 3 years (-2.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CWB's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Dixons Carphone performed over the past 5 years?

-47.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWB has a large one-off loss of £41.0M impacting its October 26 2019 financial results.

Growing Profit Margin: CWB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CWB's earnings have declined by 47.8% per year over the past 5 years.

Accelerating Growth: CWB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CWB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-4.6%).


Return on Equity

High ROE: CWB's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is Dixons Carphone's financial position?


Financial Position Analysis

Short Term Liabilities: CWB's short term assets (£2.6B) do not cover its short term liabilities (£3.2B).

Long Term Liabilities: CWB's short term assets (£2.6B) exceed its long term liabilities (£2.3B).


Debt to Equity History and Analysis

Debt Level: CWB's debt to equity ratio (14.1%) is considered satisfactory.

Reducing Debt: CWB's debt to equity ratio has reduced from 20.6% to 14.1% over the past 5 years.

Debt Coverage: CWB's debt is well covered by operating cash flow (125.4%).

Interest Coverage: CWB's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Dixons Carphone current dividend yield, its reliability and sustainability?

5.56%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CWB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CWB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CWB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CWB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CWB is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CWB's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Alex Baldock

2.25yrs

Tenure

UK£1,619,000

Compensation

Mr. Alex Baldock has been a Group Chief Executive Officer and Director of Dixons Carphone plc., since April 03, 2018. Mr. Baldock served as the Group Chief Executive of Shop Direct Home Shopping Limited fr ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD2.04M) is above average for companies of similar size in the German market ($USD1.31M).

Compensation vs Earnings: Insufficient data to compare Alex's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Alex Baldock
Group Chief Executive & Director2.25yrsUK£1.62m0.032% £325.0k
Jonathan Mason
Group CFO & Director1.92yrsUK£765.67k0.015% £151.4k
Mark Allsop
COO & Chief Digital Officer0.17yrno datano data
Nigel Paterson
General Counsel & Company Secretary5.25yrsno datano data
Amy Shields
Head of External Communicationsno datano datano data
Jeremy Fennell
Managing Director of Carphone Warehouse4.75yrsno datano data
Neil King
Group Treasurerno datano datano data
Jaan Gjærum Semlitsch
Chief Executive Officer of Nordics7.5yrsno datano data
Charles Dunstone
Senior Advisor3.25yrsUK£280.00k1.24% £12.5m

3.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: CWB's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alex Baldock
Group Chief Executive & Director2.25yrsUK£1.62m0.032% £325.0k
Jonathan Mason
Group CFO & Director1.92yrsUK£765.67k0.015% £151.4k
Ian Livingston
3.25yrsUK£300.00k0.018% £178.0k
Tony DeNunzio
Deputy Chair & Senior Independent Director3.25yrsUK£143.00k0.017% £173.1k
Eileen Burbidge
Independent Non-Executive Director1.5yrsUK£23.00k0.00036% £3.6k
Fiona McBain
Independent Non-Executive Director3.33yrsUK£85.00k0.0024% £24.3k
Andrea Joosen
Independent Non-Executive Director5.92yrsUK£75.00k0.0021% £21.6k
John Murphy
Independent Non-Executive Director6.08yrsUK£70.00k0.0086% £86.6k

3.3yrs

Average Tenure

56yo

Average Age

Experienced Board: CWB's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dixons Carphone plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dixons Carphone plc
  • Ticker: CWB
  • Exchange: DB
  • Founded: 1937
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Market Cap: UK£913.993m
  • Listing Market Cap: UK£1.009b
  • Shares outstanding: 1.17b
  • Website: https://www.dixonscarphone.com

Number of Employees


Location

  • Dixons Carphone plc
  • 1 Portal Way
  • London
  • Greater London
  • W3 6RS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DC.LSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2010
CWBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2010
DCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2010

Biography

Dixons Carphone plc operates as a consumer electrical and mobile retailer and services company. It operates through four segments: UK & Ireland Electricals, UK & Ireland Mobile, Nordics, and Greece. The company retails electrical products, airport electricals, and telecommunications products; and computing products and services to business to business customers, as well as offers mobile virtual network operator and consumer electrical repair services. It provides its products and services under the Currys PC World, Dixons Travel, Team Knowhow, PC World Business, Carphone Warehouse, iD Mobile, Carphone Warehouse Business, Elkjøp, Elkjøp and Elkjøp Phonehouse, Knowhow, InfoCare, Kotsovolos, Elgiganten and Elgiganten Phone House, and Gigantti brands. The company also sells its products through online; and offers insurance services. Dixons Carphone plc was founded in 1937 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 21:44
End of Day Share Price2020/07/15 00:00
Earnings2019/10/26
Annual Earnings2019/04/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.