LSE:TED

Stock Analysis Report

Executive Summary

Ted Baker Plc engages in the design, wholesale, and retail of menswear, womenswear, and accessories under the Ted Baker name.

Rewards

Trading at 41% below its fair value

Earnings are forecast to grow 90.91% per year

Pays a reliable dividend of 53.91%

Risk Analysis

Dividend of 53.91% is not well covered by earnings or forecast to be in the next 3 years

Has a high level of debt

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 2 more risks


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Ted Baker's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TED's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.9%

TED

-6.7%

GB Luxury

-2.4%

GB Market


1 Year Return

-93.1%

TED

-43.8%

GB Luxury

-25.9%

GB Market

Return vs Industry: TED underperformed the UK Luxury industry which returned -42.9% over the past year.

Return vs Market: TED underperformed the UK Market which returned -25% over the past year.


Shareholder returns

TEDIndustryMarket
7 Day-12.9%-6.7%-2.4%
30 Day-56.3%-24.3%-18.0%
90 Day-74.4%-44.8%-29.1%
1 Year-92.8%-93.1%-42.4%-43.8%-22.2%-25.9%
3 Year-95.8%-96.2%-39.3%-43.2%-16.0%-26.6%
5 Year-95.7%-96.3%-32.1%-39.5%-4.5%-26.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ted Baker undervalued compared to its fair value and its price relative to the market?

43.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TED (£1.09) is trading below our estimate of fair value (£1.84)

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


Price To Earnings Ratio

PE vs Industry: TED is poor value based on its PE Ratio (42.3x) compared to the Luxury industry average (15.9x).

PE vs Market: TED is poor value based on its PE Ratio (42.3x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: TED is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: TED is good value based on its PB Ratio (0.2x) compared to the GB Luxury industry average (1.2x).


Next Steps

Future Growth

How is Ted Baker forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

90.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TED's forecast earnings growth (90.9% per year) is above the savings rate (0.5%).

Earnings vs Market: TED's earnings (90.9% per year) are forecast to grow faster than the UK market (15.6% per year).

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

Revenue vs Market: TED's revenue (1% per year) is forecast to grow slower than the UK market (2.4% per year).

High Growth Revenue: TED's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TED's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has Ted Baker performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TED has a large one-off loss of £28.9M impacting its August 10 2019 financial results.

Growing Profit Margin: TED's current net profit margins (0.2%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: TED's earnings have declined by -1.9% per year over the past 5 years.

Accelerating Growth: TED's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TED had negative earnings growth (-97.8%) over the past year, making it difficult to compare to the Luxury industry average (-3.4%).


Return on Equity

High ROE: TED's Return on Equity (0.5%) is considered low.


Next Steps

Financial Health

How is Ted Baker's financial position?


Financial Position Analysis

Short Term Liabilities: TED's short term assets (£307.9M) exceed its short term liabilities (£263.6M).

Long Term Liabilities: TED's short term assets (£307.9M) exceed its long term liabilities (£188.7M).


Debt to Equity History and Analysis

Debt Level: TED's debt to equity ratio (72.7%) is considered high.

Reducing Debt: TED's debt to equity ratio has increased from 38.4% to 72.7% over the past 5 years.

Debt Coverage: TED's debt is well covered by operating cash flow (57.6%).

Interest Coverage: TED's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: TED has a high level of physical assets or inventory.

Debt Coverage by Assets: TED's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Ted Baker's current dividend yield, its reliability and sustainability?

55.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TED's dividend (53.91%) is higher than the bottom 25% of dividend payers in the UK market (2.67%).

High Dividend: TED's dividend (53.91%) is in the top 25% of dividend payers in the UK market (7.36%)


Stability and Growth of Payments

Stable Dividend: TED's dividends per share have been stable in the past 10 years.

Growing Dividend: TED's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1889.2%), TED's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TED is not forecast to pay a dividend in 3 years.


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Rachel Osborne

0.33

Tenure

Ms. Rachel Osborne serves as Chief Executive Officer at Ted Baker Plc since March 30, 2020. She is Director of Ted Baker Plc since November 12, 2019 and served as its Acting Chief Executive Officer since D ...


Leadership Team

NamePositionTenureCompensationOwnership
Lindsay Page
Chief Operating Officer5.75yrsUK£1.03mno data
Jennifer Roebuck
Chief Customer Officerno dataUK£55.00kno data
Rachel Osborne
CEO & Director0.33yrno datano data
David Wolffe
Interim Chief Financial Officerno datano datano data
Peter Hearsey-Zoubie
General Counsel & Company Secretaryno datano datano data
Ari Hoffman
Chief Executive of North American Business0.50yrno datano data
Charles Anderson
Finance Director & Company Secretaryno datano datano data

0.5yrs

Average Tenure

54yo

Average Age

Experienced Management: TED's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rachel Osborne
CEO & Director0.33yrno datano data
Jonathan Kempster
Independent Non-Executive Director0.33yrno datano data
Andrew Jennings
Non-Executive Director6.17yrsUK£55.00k0.011% £5.3k
Sharon Baylay
Acting Independent Chairman0.33yrUK£34.00kno data
Helena Feltham
Senior Independent Director0.33yrno datano data

0.3yrs

Average Tenure

55yo

Average Age

Experienced Board: TED's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


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

Ted Baker Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ted Baker Plc
  • Ticker: TED
  • Exchange: LSE
  • Founded: 1987
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: UK£46.816m
  • Shares outstanding: 44.59m
  • Website: https://www.tedbakerplc.com

Number of Employees


Location

  • Ted Baker Plc
  • The Ugly Brown Building
  • 6a St Pancras Way
  • London
  • Greater London
  • NW1 0TB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEDLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 1997
TBAK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1997
TEDLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 1997
TEBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1997

Biography

Ted Baker Plc engages in the design, wholesale, and retail of menswear, womenswear, and accessories under the Ted Baker name. The company operates through three segments: Retail, Wholesale, and Licensing. It offers a range of collections, including global, phormal, endurance, accessories, bedding, children’s wear, crockery, eyewear, footwear, fragrance and skin wear, gifting and stationery, jewelry, lingerie and sleepwear, luggage, neckwear, rugs, suiting, technical accessories, tiles, and watches. The company distributes its products through retail stores, concessions, independent retailers, and department stores, as well as through its e-commerce business. It operates 532 stores and concessions comprising 195 in the United Kingdom; 113 in Europe; 127 in the United States and Canada; 88 in the Middle East, Africa, and Asia; and 9 in Australasia. Ted Baker Plc was founded in 1987 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 Analysis2020/04/05 22:19
End of Day Share Price2020/04/03 00:00
Earnings2019/08/10
Annual Earnings2019/01/26


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.