LSE:CPR

Stock Analysis Report

Executive Summary

Carpetright plc engages in the retail sale of floor coverings, beds, curtains, and blinds.


Snowflake Analysis

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.9%

CPR

9.3%

GB Specialty Retail

5.9%

GB Market


1 Year Return

-73.1%

CPR

-29.6%

GB Specialty Retail

-22.7%

GB Market

Return vs Industry: CPR underperformed the UK Specialty Retail industry which returned 31.6% over the past year.

Return vs Market: CPR underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

CPRIndustryMarket
7 Day5.9%9.3%5.9%
30 Day0.4%-35.9%-23.1%
90 Day-46.7%-41.9%-28.1%
1 Year-73.1%-73.1%-27.2%-29.6%-18.6%-22.7%
3 Year-97.1%-97.1%-32.0%-38.7%-13.4%-24.7%
5 Year-99.0%-99.0%-33.3%-43.7%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Carpetright undervalued compared to its fair value and its price relative to the market?

0.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CPR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CPR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CPR is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.

PE vs Market: CPR 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 CPR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CPR is good value based on its PB Ratio (0.3x) compared to the GB Specialty Retail industry average (1.2x).


Next Steps

Future Growth

How is Carpetright forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

109.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: CPR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CPR's is expected to become profitable in the next 3 years.

Revenue vs Market: CPR's revenue (0.6% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: CPR's revenue (0.6% 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 CPR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Carpetright performed over the past 5 years?

-68.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPR is currently unprofitable.

Growing Profit Margin: CPR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CPR is unprofitable, and losses have increased over the past 5 years at a rate of -68.2% per year.

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

Earnings vs Industry: CPR is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (2.2%).


Return on Equity

High ROE: CPR has a negative Return on Equity (-44.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is Carpetright's financial position?


Financial Position Analysis

Short Term Liabilities: CPR's short term assets (£72.0M) do not cover its short term liabilities (£101.6M).

Long Term Liabilities: CPR's short term assets (£72.0M) exceed its long term liabilities (£50.9M).


Debt to Equity History and Analysis

Debt Level: CPR's debt to equity ratio (83.3%) is considered high.

Reducing Debt: CPR's debt to equity ratio has increased from 23.9% to 83.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CPR's debt is covered by short term assets (assets are 1.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CPR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CPR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CPR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CPR's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.0yrs

Average board tenure


CEO

Wilf Walsh (56yo)

5.5s

Tenure

UK£579,000

Compensation

Mr. Wilfred Thomas Walsh, also known as Wilf, has been the Chief Executive Officer at Carpetright plc since July 21, 2014. Mr. Walsh serves as the Managing Director of Coral of The UK Business at Coral Eur ...


CEO Compensation Analysis

Compensation vs Market: Wilf's total compensation ($USD752.88K) is above average for companies of similar size in the UK market ($USD326.78K).

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


Board Members

NamePositionTenureCompensationOwnership
Wilfred Walsh
CEO & Executive Director5.5yrsUK£579.00k0.24% £36.4k
Jeremy John Simpson
CFO, Company Secretary0.92yrUK£381.00kno data
Robert Ivell
Non-Executive Chairman6yrsUK£150.00kno data
Jemima Bird
Independent Non-Executive Director1yrUK£13.00kno data
David Clifford
Senior Independent Director1yrUK£46.00k0.0070% £1.1k
Pauline Best
Independent Non-executive Director0.42yrno datano data

1.0yrs

Average Tenure

56yo

Average Age

Experienced Board: CPR's board of directors are not considered experienced ( 1 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 308.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Carpetright plc
  • Ticker: CPR
  • Exchange: LSE
  • Founded: 1988
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: UK£15.044m
  • Shares outstanding: 303.61m
  • Website: https://www.carpetright.plc.uk

Number of Employees


Location

  • Carpetright plc
  • Purfleet Bypass
  • Purfleet
  • Essex
  • RM19 1TT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPRLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1993
CPRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1993

Biography

Carpetright plc engages in the retail sale of floor coverings, beds, curtains, and blinds. The company also sells its products through online. It operates 466 stores in the United Kingdom, Belgium, the Netherlands, and the Republic of Ireland. Carpetright plc was founded in 1988 and is headquartered in Purfleet, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/23 20:41
End of Day Share Price2020/01/22 00:00
Earnings2019/04/27
Annual Earnings2019/04/27


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.