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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

Show full summary:
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)