Added to YB: 2024-05-29
Pitch date: 2024-05-28
CARD.L [neutral]
Card Factory plc
-21.76%
current return
Author Info
Company Info
Card Factory plc operates as a specialist retailer of cards, gifts, and celebration essentials in the United Kingdom and internationally.
Market Cap
GBP 327.8M
Pitch Price
GBP 0.87
Price Target
N/A
Dividend
4.75%
EV/EBITDA
3.82
P/E
6.63
EV/Sales
0.90
Sector
Specialty Retail
Category
value
Card Factory's Financial Puzzle: Lease Costs and Free Cash Flow Reassessment
CARD.L: Sold position after realizing lease accounting was aggressive. Annual lease cash costs ~£40-45M, not discounted balance sheet number. At £390M EV, now trades at 9-11.5% FCF yield vs prior 17-25% estimate. Growth now needed for thesis to work vs prior view of stable FCF in slightly declining industry. Concerning 8% card volume drop in 2023. Still interesting but no longer a clear bargain. Appreciate feedback!
Read full article (4 min)