AIM:CBOX

Stock Analysis Report

Executive Summary

Cake Box Holdings Plc, through its subsidiaries, engages in the retail of fresh cream cakes in the United Kingdom.

Rewards

Trading at 51.9% below its fair value

Earnings are forecast to grow 20.54% per year

Earnings have grown 25.1% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Does not have a meaningful market cap (£45M)



Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Cake Box Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

13.5%

CBOX

6.8%

GB Consumer Retailing

10.0%

GB Market


1 Year Return

-28.8%

CBOX

-6.5%

GB Consumer Retailing

-23.0%

GB Market

Return vs Industry: CBOX underperformed the UK Consumer Retailing industry which returned -6.5% over the past year.

Return vs Market: CBOX underperformed the UK Market which returned -23% over the past year.


Shareholder returns

CBOXIndustryMarket
7 Day13.5%6.8%10.0%
30 Day-27.2%-1.5%-17.6%
90 Day-32.2%-12.8%-27.3%
1 Year-27.2%-28.8%-2.9%-6.5%-18.9%-23.0%
3 Yearn/a1.7%-5.8%-12.9%-24.2%
5 Yearn/a0.1%-8.8%1.6%-21.8%

Price Volatility Vs. Market

How volatile is Cake Box Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cake Box Holdings 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: CBOX (£1.14) is trading below our estimate of fair value (£2.36)

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


Price To Earnings Ratio

PE vs Industry: CBOX is good value based on its PE Ratio (13.6x) compared to the Consumer Retailing industry average (17.3x).

PE vs Market: CBOX is poor value based on its PE Ratio (13.6x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: CBOX is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CBOX is overvalued based on its PB Ratio (6.3x) compared to the GB Consumer Retailing industry average (0.9x).


Next Steps

Future Growth

How is Cake Box Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBOX's forecast earnings growth (20.5% per year) is above the savings rate (0.5%).

Earnings vs Market: CBOX's earnings (20.5% per year) are forecast to grow faster than the UK market (15.5% per year).

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

Revenue vs Market: CBOX's revenue (15.9% per year) is forecast to grow faster than the UK market (2.3% per year).

High Growth Revenue: CBOX's revenue (15.9% 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 CBOX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cake Box Holdings performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBOX has a high level of non-cash earnings.

Growing Profit Margin: CBOX's current net profit margins (19.1%) are higher than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: CBOX's earnings have grown significantly by 25.1% per year over the past 5 years.

Accelerating Growth: CBOX's earnings growth over the past year (26%) exceeds its 5-year average (25.1% per year).

Earnings vs Industry: CBOX earnings growth over the past year (26%) underperformed the Consumer Retailing industry 26%.


Return on Equity

High ROE: CBOX's Return on Equity (46.3%) is considered outstanding.


Next Steps

Financial Health

How is Cake Box Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CBOX's short term assets (£5.9M) exceed its short term liabilities (£2.7M).

Long Term Liabilities: CBOX's short term assets (£5.9M) exceed its long term liabilities (£1.6M).


Debt to Equity History and Analysis

Debt Level: CBOX's debt to equity ratio (23.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CBOX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CBOX's debt is well covered by operating cash flow (237.9%).

Interest Coverage: CBOX's interest payments on its debt are well covered by EBIT (78.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: CBOX's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

What is Cake Box Holdings's current dividend yield, its reliability and sustainability?

3.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CBOX's dividend (3.17%) is higher than the bottom 25% of dividend payers in the UK market (2.69%).

High Dividend: CBOX's dividend (3.17%) is low compared to the top 25% of dividend payers in the UK market (7.48%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether CBOX's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CBOX's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48%), CBOX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBOX's dividends in 3 years are forecast to be covered by earnings (50.2% payout ratio).


Next Steps

Management

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

1.7yrs

Average board tenure


CEO

Sukh Chamdal (57yo)

no data

Tenure

UK£164,404

Compensation

Mr. Sukh R. Chamdal is the Co-Founder, Chief Executive Officer and Director at Cake Box Holdings plc. 


CEO Compensation Analysis

Compensation vs Market: Sukh's total compensation ($USD203.95K) is below average for companies of similar size in the UK market ($USD335.89K).

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


Board Members

NamePositionTenureCompensationOwnership
Sukh Chamdal
Co-Founderno dataUK£164.40kno data
Pradip Dass
Co-Founderno dataUK£107.80kno data
Jaswir Singh
COO & Directorno dataUK£121.39k1.39% £631.1k
Martin Blair
Non-Executive Director1.67yrsUK£29.51kno data
Nilesh Sachdev
Non-Executive Chairman1.67yrsUK£45.83k0.046% £21.0k
Adam Batty
Non-Executive Director1.67yrsUK£29.17kno data

1.7yrs

Average Tenure

59yo

Average Age

Experienced Board: CBOX's board of directors are not considered experienced ( 1.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Cake Box Holdings Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cake Box Holdings Plc
  • Ticker: CBOX
  • Exchange: AIM
  • Founded: 2013
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: UK£45.400m
  • Shares outstanding: 40.00m
  • Website: https://www.eggfreecake.co.uk

Number of Employees


Location

  • Cake Box Holdings Plc
  • 20 - 22 Jute Lane
  • Enfield
  • Middlesex
  • EN3 7PJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBOXAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2018

Biography

Cake Box Holdings Plc, through its subsidiaries, engages in the retail of fresh cream cakes in the United Kingdom. As of March 31, 2019, the company operated 113 franchise stores. It also engages in property rental activities. Cake Box Holdings Plc was incorporated in 2013 and is headquartered in Enfield, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:00
End of Day Share Price2020/03/30 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.