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.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


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


Market Performance


7 Day Return

-4.2%

TED

-1.6%

GB Luxury

2.0%

GB Market


1 Year Return

-76.4%

TED

3.3%

GB Luxury

3.3%

GB Market

Return vs Industry: TED underperformed the UK Luxury industry which returned 3.3% over the past year.

Return vs Market: TED underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

TEDIndustryMarket
7 Day-4.2%-1.6%2.0%
30 Day-55.3%-9.8%-1.0%
90 Day-41.7%-2.1%-1.7%
1 Year-75.4%-76.4%5.9%3.3%8.3%3.3%
3 Year-79.5%-81.4%19.7%12.0%19.0%4.5%
5 Year-71.2%-74.6%42.2%27.1%38.4%8.4%

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 based on future cash flows and its price relative to the stock market?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: TED (£4.79) is trading below our estimate of fair value (£6.95)

Significantly Undervalued: TED is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: TED is poor value based on its PE Ratio (186.6x) compared to the Luxury industry average (16.7x).

PE vs Market: TED is poor value based on its PE Ratio (186.6x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: TED is poor value based on its PEG Ratio (4.9x)


Price Based on Value of Assets

PB vs Industry: TED is good value based on its PB Ratio (1x) compared to the GB Luxury industry average (2x).


Next Steps

Future Growth

How is Ted Baker expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

38.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TED's forecast earnings growth (38.3% per year) is above the savings rate (1.2%).

Earnings vs Market: TED's earnings (38.3% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: TED's revenue (4.1% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: TED's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TED's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Ted Baker performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History


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 (-2.3%).


Return on Equity

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


Return on Assets

ROA vs Industry: TED's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: TED's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ted Baker's financial position?


Financial Position Analysis

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

Long Term Liabilities: TED's short term assets (307.9M) exceeds 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 2.009490x debt).


Next Steps

Dividend

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

8.96%

Expected Dividend Yield


Dividend Yield vs Market

company12.2%marketbottom25%2.0%markettop25%5.4%industryaverage1.9%forecastin3Years9.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: TED's dividend (12.23%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: TED's dividend (12.23%) is in the top 25% of dividend payers in the UK market (5.42%)

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's dividends in 3 years are forecast to be covered by earnings (58.6% payout ratio).


Next Steps

Management

What is the CEO of Ted Baker's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average board tenure


CEO

Lindsay Page (60yo)

0.8yrs

Tenure

UK£1,026,000

Compensation

Mr. Lindsay Dennis Page, MA, ACA, has been Chief Executive Officer of Ted Baker PLC since April 11, 2019. He serves as Chief Operating Officer since July 8, 2014 of Ted Baker PLC and was its Acting Chief E ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Lindsay's total compensation is reasonable compared to companies of similar size in the UK market.

Compensation vs Earnings: Lindsay's compensation has been consistent with company performance over the past year.


Board Age and Tenure

5.7yrs

Average Tenure

60yo

Average Age

Experienced Board: TED's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • David Bernstein (75yo)

    Executive Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: UK£85.00k
  • Lindsay Page (60yo)

    CEO, COO

    • Tenure: 0.8yrs
    • Compensation: UK£1.03m
  • Charles Anderson

    Finance Director & Company Secretary

    • Tenure: 0yrs

Board Members

  • David Bernstein (75yo)

    Executive Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: UK£85.00k
  • Lindsay Page (60yo)

    CEO, COO

    • Tenure: 0.8yrs
    • Compensation: UK£1.03m
  • Andrew Jennings (70yo)

    Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£55.00k
  • Sharon Baylay (51yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£34.00k
  • Ron Stewart (71yo)

    Senior Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£60.00k
  • Jennifer Roebuck (45yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£55.00k
  • Helena Feltham (56yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs

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£213.474m
  • Shares outstanding: 44.57m
  • 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.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:44
End of Day Share Price2019/10/11 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.

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