Cake Box Holdings (AIM:CBOX) - Share price, News & Analysis

CBOX fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	6/6
Financial Health	6/6
Dividends	3/6

CBOX Stock Overview

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

Rewards

Trading at 63.9% below our estimate of its fair value

Revenue is forecast to grow 9.6% per year

Earnings grew by 63.5% over the past year

Risk Analysis

Unstable dividend track record

Volatile share price over the past 3 months

Latest financial reports are more than 6 months old

Does not have a meaningful market cap (£78M)

Cake Box Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cake Box Holdings
Historical stock prices
Current Share Price	UK£1.95
52 Week High	UK£4.28
52 Week Low	UK£1.35
Beta	1.28
1 Month Change	-9.72%
3 Month Change	23.42%
1 Year Change	-28.31%
3 Year Change	21.88%
5 Year Change	n/a
Change since IPO	53.54%

Recent News & Updates

Apr 21

Do Cake Box Holdings's (LON:CBOX) Earnings Warrant Your Attention?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Mar 09

At UK£1.65, Is Cake Box Holdings Plc (LON:CBOX) Worth Looking At Closely?

Cake Box Holdings Plc ( LON:CBOX ), is not the largest company out there, but it saw a double-digit share price rise of...

Shareholder Returns

	CBOX	GB Consumer Retailing	GB Market
7D	7.4%	-6.0%	-0.4%
1Y	-28.3%	-20.1%	-4.0%

Return vs Industry: CBOX underperformed the UK Consumer Retailing industry which returned -20.1% over the past year.

Return vs Market: CBOX underperformed the UK Market which returned -4% over the past year.

Price Volatility

Is CBOX's price volatile compared to industry and market?
CBOX volatility
CBOX Average Weekly Movement	9.8%
Consumer Retailing Industry Average Movement	5.6%
Market Average Movement	6.2%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.2%

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

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

About the Company

Founded	Employees	CEO	Website
2013	107	Sukh Chamdal	https://www.eggfreecake.co.uk

Cake Box Holdings Plc, through its subsidiaries, engages in the retail of fresh cream cakes in the United Kingdom. As of March 31, 2021, the company operated 157 franchise stores. It also engages in property rental activities.

Cake Box Holdings Fundamentals Summary

How do Cake Box Holdings's earnings and revenue compare to its market cap?
CBOX fundamental statistics
Market Cap	UK£78.00m
Earnings (TTM)	UK£4.97m
Revenue (TTM)	UK£29.80m

15.7x

P/E Ratio

2.6x

P/S Ratio

Is CBOX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CBOX income statement (TTM)
Revenue	UK£29.80m
Cost of Revenue	UK£15.60m
Gross Profit	UK£14.19m
Other Expenses	UK£9.22m
Earnings	UK£4.97m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	47.63%
Net Profit Margin	16.68%
Debt/Equity Ratio	11.2%

How did CBOX perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

50%

Payout Ratio

Valuation

Is Cake Box Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CBOX (£1.95) is trading below our estimate of fair value (£5.4)

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

Price To Earnings Ratio

PE vs Industry: CBOX is poor value based on its PE Ratio (15.7x) compared to the UK Consumer Retailing industry average (14.3x).

PE vs Market: CBOX is poor value based on its PE Ratio (15.7x) compared to the UK market (15.4x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: CBOX is overvalued based on its PB Ratio (6.2x) compared to the GB Consumer Retailing industry average (1.2x).

Future Growth

How is Cake Box Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.6%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if CBOX'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: CBOX's revenue (9.6% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: CBOX's revenue (9.6% 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

Past Performance

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

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

14.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CBOX has high quality earnings.

Growing Profit Margin: CBOX's current net profit margins (16.7%) are higher than last year (16.4%).

Past Earnings Growth Analysis

Earnings Trend: CBOX's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: CBOX's earnings growth over the past year (63.5%) exceeds its 5-year average (14.8% per year).

Earnings vs Industry: CBOX earnings growth over the past year (63.5%) exceeded the Consumer Retailing industry 24.7%.

Return on Equity

High ROE: CBOX's Return on Equity (39.3%) is considered high.

Financial Health

How is Cake Box Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CBOX's short term assets (£10.8M) exceed its short term liabilities (£4.5M).

Long Term Liabilities: CBOX's short term assets (£10.8M) exceed its long term liabilities (£1.8M).

Debt to Equity History and Analysis

Debt Level: CBOX has more cash than its total debt.

Reducing Debt: CBOX's debt to equity ratio has reduced from 129.3% to 11.2% over the past 5 years.

Debt Coverage: CBOX's debt is well covered by operating cash flow (394.2%).

Interest Coverage: CBOX's interest payments on its debt are well covered by EBIT (182.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.79%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CBOX's dividend (3.79%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: CBOX's dividend (3.79%) is low compared to the top 25% of dividend payers in the UK market (4.86%).

Stability and Growth of Payments

Stable Dividend: CBOX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CBOX's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (49.9%), CBOX's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (65.6%), CBOX's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

6.2yrs

Average management tenure

CEO

Sukh Chamdal (59 yo)

14.33yrs

Tenure

UK£190,903

Compensation

Mr. Sukh R. Chamdal is the Co-Founder at Cake Box Holdings plc in 2008 and is its Chief Executive Officer. Mr. Chamdal is Director at Cake Box Holdings plc from March 27, 2009. Mr. Chamdal founded Cake Box...

CEO Compensation Analysis

Compensation vs Market: Sukh's total compensation ($USD237.96K) is about average for companies of similar size in the UK market ($USD318.12K).

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

Leadership Team

Experienced Management: CBOX's management team is seasoned and experienced (6.2 years average tenure).

Board Members

Experienced Board: CBOX's board of directors are considered experienced (3.9 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: CBOX 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31