LSE:TED

Stock Analysis Report

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Market Cap

UK£261.8m

Last Updated

2021/06/20 17:38 UTC

Data Sources

Company Financials +

Executive Summary

Ted Baker Plc engages in the design, wholesale, and retail of menswear, womenswear, and accessories under the Ted Baker brand in the United States, the United Kingdome, Europe, Canada, and South Africa. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


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 is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: TED's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

-14.8%

TED

-5.9%

GB Luxury

-1.7%

GB Market


1 Year Return

50.9%

TED

38.3%

GB Luxury

16.0%

GB Market

Return vs Industry: TED exceeded the UK Luxury industry which returned 38.3% over the past year.

Return vs Market: TED exceeded the UK Market which returned 16% over the past year.


Shareholder returns

TEDIndustryMarket
7 Day-14.8%-5.9%-1.7%
30 Day-21.2%-1.0%0.2%
90 Day19.2%3.1%5.7%
1 Year50.9%50.9%38.5%38.3%21.6%16.0%
3 Year-93.3%-93.6%-25.4%-28.7%11.6%-1.3%
5 Year-94.0%-94.5%10.4%0.8%51.6%23.1%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TED (£1.42) is trading below our estimate of fair value (£5.24)

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


Price To Earnings Ratio

PE vs Industry: TED is unprofitable, so we can't compare its PE Ratio to the European Luxury industry average.

PE vs Market: TED is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TED's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TED is good value based on its PB Ratio (1.8x) compared to the GB Luxury industry average (5.7x).


Future Growth

How is Ted Baker forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

17.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TED's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if TED's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: TED's revenue (17.7% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: TED's revenue (17.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TED's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Ted Baker performed over the past 5 years?

-71.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TED is currently unprofitable.

Growing Profit Margin: TED is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TED is unprofitable, and losses have increased over the past 5 years at a rate of 71.6% per year.

Accelerating Growth: Unable to compare TED's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TED is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-11.9%).


Return on Equity

High ROE: TED has a negative Return on Equity (-56.86%), as it is currently unprofitable.


Financial Health

How is Ted Baker's financial position?


Financial Position Analysis

Short Term Liabilities: TED's short term assets (£211.5M) exceed its short term liabilities (£137.7M).

Long Term Liabilities: TED's short term assets (£211.5M) exceed its long term liabilities (£109.6M).


Debt to Equity History and Analysis

Debt Level: TED is debt free.

Reducing Debt: TED has no debt compared to 5 years ago when its debt to equity ratio was 56.7%.

Debt Coverage: TED has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TED has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

0.25%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate TED'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 TED's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: TED is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Rachel Osborne

1.5yrs

Tenure

UK£505,348

Compensation

Ms. Rachel Osborne, ACA, serves as Chief Executive Officer at Ted Baker Plc since March 30, 2020. She is Director of Ted Baker Plc since November 11, 2019 and served as its Acting Chief Executive Officer s...


CEO Compensation Analysis

Compensation vs Market: Rachel's total compensation ($USD697.28K) is about average for companies of similar size in the UK market ($USD729.92K).

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


Leadership Team

Experienced Management: TED's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: TED's board of directors are not considered experienced ( 1.5 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 been substantially diluted in the past year, with total shares outstanding growing by 314%.


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£261.775m
  • Shares outstanding: 184.61m
  • 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


Biography

Ted Baker Plc engages in the design, wholesale, and retail of menswear, womenswear, and accessories under the Ted Baker brand in the United States, the United Kingdome, Europe, Canada, and South Africa. Th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 17:38
End of Day Share Price2021/06/18 00:00
Earnings2021/01/30
Annual Earnings2021/01/30


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.