Card Factory (CARD) AI Stock Analysis

• Market Cap: £292.34M
• Dividend Yield: 6.43%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.97
• Revenue Growth: 7.75%
• EPS Growth: -21.78%
• Country: UK
• Employees: 10,331
• Sector: Consumer Cyclical
• Sector Strength: 53
• Industry: Retail - Discretionary
• EPS (TTM): 0.12
• Shares Outstanding: 348,018,250
• 10 Day Avg. Volume: 1,856,447
• 30 Day Avg. Volume: 1,426,192
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.56
• Price to Cash Flow (P/CF): 16.40
• P/FCF Ratio: 20.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 173.00p
• Price Target Upside: 106.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Card Factory's strong financial performance and attractive valuation highlight its potential as an investment. Despite the neutral technical indicators, the company's robust earnings, stable balance sheet, and high dividend yield support a positive outlook.

Card Factory Business Overview & Revenue Model

Company Description

Card Factory PLC is a British retailer of greeting cards. Its products are offered via stores present in the United Kingdom, as well as online through websites: Card Factory and Getting Personal. The company's strategy is to provide high-quality cards at affordable prices. Less than 50% of sales come from gift dressings, small gifts, and party items. The business model is vertically integrated. It has an in-house design team, a printing facility, and a central warehousing facility.

How the Company Makes Money

Card Factory makes money primarily through the retail sale of greeting cards, gifts, and related products. The company's revenue model heavily relies on its extensive network of brick-and-mortar stores, strategically located to maximize foot traffic and accessibility. In addition to in-store sales, Card Factory generates income through its e-commerce platform, which allows customers to purchase products online. The company benefits from economies of scale in production and distribution, enabling them to offer competitively priced products. Key revenue streams include personalized greeting cards, party supplies, and a wide array of gifts for various occasions. Partnerships with suppliers and manufacturers help maintain a steady inventory and manage costs effectively, contributing to the company's earnings. Seasonal peaks, such as Christmas, Valentine's Day, and Mother's Day, are significant contributors to their annual revenue, driving increased sales volume during these periods.

Card Factory Financial Statement Overview

Summary

Card Factory exhibits strong financial health with significant revenue growth and improved profitability. The balance sheet is stable with reasonable leverage and a solid equity base. Cash flow generation is strong, supporting ongoing operations and potential investments.

Income Statement

Card Factory has demonstrated strong revenue growth with a revenue increase of 10.24% from 2023 to 2024. The gross profit margin is solid at 27.1%, and the net profit margin has improved to 9.69%, indicating increased profitability. EBIT and EBITDA margins are healthy at 14.95% and 24.52%, respectively, showing strong operational efficiency.

Balance Sheet

The company's balance sheet shows a manageable debt-to-equity ratio of 0.46, indicating moderate leverage. Return on equity is strong at 15.67%, reflecting effective use of equity to generate profits. The equity ratio stands at 57.21%, suggesting a stable financial structure with a good proportion of equity financing.

Cash Flow

Card Factory's cash flow is robust, with a free cash flow growth rate of 5.02%. The operating cash flow to net income ratio is 2.12, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.56, showing efficient conversion of profits to cash.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
523.90M	510.90M	463.40M	364.40M	285.10M	451.50M
	Gross Profit
155.50M	138.60M	114.70M	67.40M	29.90M	111.80M
	EBIT
70.90M	76.40M	67.50M	31.20M	-4.00M	74.20M
	EBITDA
99.30M	125.30M	113.50M	80.30M	43.20M	123.40M
	Net Income Common Stockholders
40.80M	49.50M	44.20M	8.10M	-13.60M	51.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.80M	11.30M	11.70M	38.30M	12.50M	5.50M
	Total Assets
582.30M	552.10M	537.20M	536.00M	532.50M	568.80M
	Total Debt
143.80M	145.80M	172.70M	230.30M	263.70M	293.40M
	Net Debt
140.00M	134.50M	161.00M	192.00M	251.20M	287.90M
	Total Liabilities
362.20M	236.30M	269.00M	316.40M	326.00M	347.30M
	Stockholders Equity
220.10M	315.80M	268.20M	219.60M	206.50M	221.50M
Cash Flow		Free Cash Flow
64.40M	77.40M	73.70M	91.60M	57.70M	87.70M
	Operating Cash Flow
79.20M	105.20M	91.90M	98.50M	65.20M	102.20M
	Investing Cash Flow
-19.30M	-30.00M	-18.20M	-6.90M	-7.00M	-14.10M
	Financing Cash Flow
-54.20M	-73.20M	-102.10M	-65.80M	-47.70M	-89.90M

Card Factory Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CARD, the sentiment is Negative. The current price of 83.9 is below the 20-day moving average (MA) of 92.45, below the 50-day MA of 93.76, and below the 200-day MA of 99.60, indicating a bearish trend. The MACD of -1.44 indicates Positive momentum. The RSI at 27.55 is Positive, neither overbought nor oversold. The STOCH value of 3.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CARD.

Card Factory Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARD	76 Outperform	£292.34M	7.09	15.67%	6.43%	7.75%	-21.78%
SMWH	67 Neutral	£1.38B	20.85	16.11%	3.10%	6.97%	-14.59%
IGR	66 Neutral	£59.44M	4.63	9.85%	―	-10.76%	―
Sector *	60 Neutral	$13.01B	10.45	0.79%	3.53%	1.60%	-22.47%
WINE	56 Neutral	£47.21M	―	-27.15%	―	-15.67%	45.17%
MOON	54 Neutral	£704.22M	―	890.75%	0.48%	5.32%	-152.26%
MTC	40 Underperform	£17.45M	―	-10.96%	―	-24.21%	-119.05%

Card Factory Corporate Events

Card Factory PLC Announces Total Voting Rights

Card Factory PLC has announced that its issued ordinary share capital consists of 348,004,716 ordinary shares, each carrying one vote, with no shares held in treasury. This information is crucial for shareholders for determining the need to notify any changes in their interest under the FCA’s rules, potentially impacting stakeholder decisions and market transparency.

Card Factory Reports Strong Revenue Growth Despite Retail Challenges

Card Factory reported a robust revenue growth of 6.2% year-on-year for the eleven months ending December 2024, with expectations for full-year adjusted profit before tax remaining unchanged. The company saw a 5.7% rise in total store revenue, driven by the addition of 32 net new stores and strong performance in gifts and celebration essentials categories. Despite a decline in online sales, revenue from partnerships grew significantly by 23.5%, aided by recent acquisitions. The company’s productivity and efficiency programs have helped navigate a challenging retail environment and maintain profitability, while also managing inflationary pressures effectively.

Card Factory Reports Strong Sales Growth Amid Retail Challenges

Card Factory announced a trading update showing a 6.2% increase in total sales for the eleven months ended December 2024, driven by strong store revenue growth and the expansion of gift ranges. Despite a decline in online sales, the company maintained expectations for full-year adjusted profit before tax, leveraging productivity and efficiency programs. Looking ahead, the company aims to counteract cost inflation from wage and tax changes through strategic initiatives while continuing to invest in growth.

Card Factory PLC Announces Total Voting Rights and Share Capital Details

Card Factory PLC has announced that its total issued ordinary share capital consists of 347,981,823 ordinary shares, each carrying one vote, with no shares held in treasury. This information is crucial for shareholders in determining their interests or changes in their interests in the company’s share capital, as per the FCA’s Disclosure Guidance and Transparency Rules.

Card Factory Director Increases Stake with Recent Share Purchase

Card Factory announced that Pam Powell, the Senior Independent Director, has purchased 5,109 ordinary shares of the company at a price of £0.969774 per share on the London Stock Exchange. This transaction increases her beneficial interest to 9,875 shares, representing 0.0028% of the company’s issued ordinary share capital, and is noted under the Market Abuse Regulation and the Disclosure and Transparency Rules, indicating a notable insider investment.

Card Factory Addresses Shareholder Concerns on Chair Reappointment

Card Factory plc held its 2024 Annual General Meeting where all resolutions were passed, but over 20% of votes were cast against reappointing the Chair, Paul Moody. The Board engaged with major shareholders, who supported the reappointment, and noted that votes against Moody might be due to Board diversity issues. The Board is composed of 33% women and believes its current composition meets the company’s operational and strategic needs, though it will continue to review diversity aspects.

Card Factory CEO Increases Shareholding in Show of Confidence

Card Factory PLC announced that its CEO, Darcy Willson-Rymer, has purchased 49,529 ordinary shares of the company on the London Stock Exchange, at an average price of £1.004 per share. This transaction increases his total shareholding to 557,078 shares, representing 0.16% of the company’s issued ordinary share capital. This move by the CEO could be seen as a sign of confidence in the company’s future prospects, potentially impacting investor sentiment positively.

Card Factory CFO Boosts Shareholding with New Purchase

Card Factory’s CFO, Matthias Seeger, has increased his stake in the company by purchasing over 21,000 shares on the London Stock Exchange, reflecting a continued confidence in the business’s prospects. This transaction raises his total shareholding to 60,470, a move that may pique investor interest. Such insider buying often signals positive expectations for the company’s future performance.

Card Factory Expands into US Market with Acquisition

Card Factory, the UK’s top greeting cards and gifts retailer, has entered the US market by acquiring Garven Holdings, LLC for $25 million. This strategic move aligns with Card Factory’s international growth ambitions, capitalizing on the $70 billion US celebration essentials market. The acquisition is expected to enhance Card Factory’s product offerings and expand its presence in the world’s largest market for celebration occasions.