LSE:CARD

Stock Analysis Report

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Executive Summary

Card Factory plc operates as a specialist retailer of greeting cards in the United Kingdom. More Details


Snowflake Analysis

Very undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has Card Factory's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.2%

CARD

-4.8%

GB Specialty Retail

-3.4%

GB Market


1 Year Return

-81.1%

CARD

2.0%

GB Specialty Retail

-19.7%

GB Market

Return vs Industry: CARD underperformed the UK Specialty Retail industry which returned 2% over the past year.

Return vs Market: CARD underperformed the UK Market which returned -19.7% over the past year.


Shareholder returns

CARDIndustryMarket
7 Day-7.2%-4.8%-3.4%
30 Day-7.2%-0.6%-4.5%
90 Day-25.3%22.3%-5.1%
1 Year-80.2%-81.1%2.8%2.0%-16.6%-19.7%
3 Year-87.1%-89.5%7.4%-0.8%-12.8%-23.6%
5 Year-88.2%-91.3%-6.3%-18.8%9.9%-14.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Card Factory 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: CARD (£0.34) is trading below our estimate of fair value (£0.98)

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


Price To Earnings Ratio

PE vs Industry: CARD is good value based on its PE Ratio (8x) compared to the GB Specialty Retail industry average (25.7x).

PE vs Market: CARD is good value based on its PE Ratio (8x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CARD is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: CARD is good value based on its PB Ratio (0.6x) compared to the GB Specialty Retail industry average (1.2x).


Next Steps

Future Growth

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

59.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CARD's forecast earnings growth (59% per year) is above the savings rate (1.2%).

Earnings vs Market: CARD's earnings (59% per year) are forecast to grow faster than the UK market (23.9% per year).

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

Revenue vs Market: CARD's revenue (14.2% per year) is forecast to grow faster than the UK market (5.8% per year).

High Growth Revenue: CARD's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CARD's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has Card Factory performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CARD has high quality earnings.

Growing Profit Margin: CARD's current net profit margins (4%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: CARD's earnings have declined by 11.2% per year over the past 5 years.

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

Earnings vs Industry: CARD had negative earnings growth (-70.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (-32.6%).


Return on Equity

High ROE: CARD's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Card Factory's financial position?


Financial Position Analysis

Short Term Liabilities: CARD's short term assets (£102.6M) do not cover its short term liabilities (£105.3M).

Long Term Liabilities: CARD's short term assets (£102.6M) do not cover its long term liabilities (£280.1M).


Debt to Equity History and Analysis

Debt Level: CARD's debt to equity ratio (86.8%) is considered high.

Reducing Debt: CARD's debt to equity ratio has increased from 38.9% to 86.8% over the past 5 years.

Debt Coverage: CARD's debt is well covered by operating cash flow (58.1%).

Interest Coverage: CARD's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Card Factory current dividend yield, its reliability and sustainability?

11.23%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CARD'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?

3.3yrs

Average management tenure


CEO

Card Factory has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Moody
Executive Chairman2yrsUK£144.00kno data
Kristian Lee
CFO & Executive Director3.25yrsUK£380.93k0.00094%
£ 1.0k
Ciaran Stone
General Counsel0.75yrno datano data
Helen Lockwood
Human Resources Director14.75yrsno datano data
Adam Dury
Chief Commercial Officer1.17yrsno datano data
Christopher Beck
Supply Chain & Logistics Director12.75yrsno datano data
John Smith
Getting Personal Managing Directorno datano datano data
Andrew Wasley
Printcraft Managing Director10.75yrsno datano data
Pierre Hyde
Strategy and Insight Directorno datano datano data
Glyn Williams
Customer & Multi-Channel Directorno datano datano data

3.3yrs

Average Tenure

48yo

Average Age

Experienced Management: CARD's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Moody
Executive Chairman2yrsUK£144.00kno data
Kristian Lee
CFO & Executive Director3.25yrsUK£380.93k0.00094%
£ 1.0k
Ciaran Stone
General Counsel0.75yrno datano data
Octavia Morley
Senior Independent Non-Executive Director6.5yrsUK£57.00k0.0039%
£ 4.3k
David Stead
Independent Non-Executive Director6.5yrsUK£53.00k0.0065%
£ 7.1k
Roger Whiteside
Independent Non-Executive Director2.83yrsUK£45.00k0.0066%
£ 7.2k
Paul McCrudden
Independent Non-Executive Director5.83yrsUK£45.00kno data
Nathan Lane
Non-Independent Non-Executive Director0.50yrno datano data

3.0yrs

Average Tenure

62yo

Average Age

Experienced Board: CARD's board of directors are considered experienced (3 years average tenure).


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

Card Factory plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Card Factory plc
  • Ticker: CARD
  • Exchange: LSE
  • Founded: 1997
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: UK£109.320m
  • Shares outstanding: 341.63m
  • Website: https://www.cardfactoryinvestors.com

Number of Employees


Location

  • Card Factory plc
  • Century House
  • Brunel Road
  • Wakefield
  • West Yorkshire
  • WF2 0XG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CARDLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2014
0CTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2014
CARDLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2014

Biography

Card Factory plc operates as a specialist retailer of greeting cards in the United Kingdom. The company designs, sources, prints, warehouses, produces, distributes, and sells greeting cards, dressings, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 22:14
End of Day Share Price2020/10/29 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.