Card Factory Share Discussion Threads

[casholaa] 05/2/2024 18:04

Not fussed about divis menioned in H1 or H2 of this year as any divi announcement, if any, would ordinarily be in Jan/Fen 2025. A phrggn announcement that Tranche 'A' has gone is justified given reference to it in the previous rns's already!

I'll add that, imvho, if they have disposed of Tranche 'A', that is market sensitive information known to others and so should be rns'd.

[riverman77] 05/2/2024 17:34

You're right, very good value but CARD make zero effort to promote themselves to retail investors - no broker notes on Research Tree or investor presentation on the various retail platforms. Realistically probably won't rerate until they confirm what's going on with the dividend.

[grahamytrain] 05/2/2024 16:53

Why indeed, why is the market not recognising CF’s potential? And why is CF hiding its light under a bushel instead of shouting its achievements from the roof tops and interacting with the investment gurus and pundits. There are more questions than answers at the moment. Come on Card Factory….get a move on !!!

[ggrantsu] 05/2/2024 16:15

now under the 6x earnings mark...and even after factoring in all lease payments, this is now on a mid teen FCF yield.

ridiculous and a huge opportunity. why the hell is the company not buying back shares.

[bbonsall] 05/2/2024 16:14

ggrantsu

Never mind in 5 years. CARD should be over £2 right now based on its, revenue, profitability, cash generation and debt reduction. The share price is on a very low PE ratio of less than 6 when other retailers in this sector are on an average PE of about 22.
When shops were closed and CF was losing millions and threatening a £70 Million cash raise the share price was still 40p.
As you say, it is still being priced for extinction instead of being recognised as a very successful and growing business.

[casholaa] 05/2/2024 14:32

You just reminded me to go get that Valentine's card tomorrow. No sense in parting with the money elsewhere.

[ggrantsu] 05/2/2024 13:20

you should do astoundingly well at this price. should quite easily be over 2 pounds in 5 years...a little bit of patience and calm, in the knowledge you have bought a business that is priced for extinction, but in fact performing well ahead of the broader retail sector. barriers to entry are also high, with card the only operator with any scale who is completely vertically integrated...the business is benefitting from a continued exodus of higher price competitors. ultimately...things should only get better in terms of performance - given we are starting from a very strong base, it's difficult to think of many things out there so exciting at the moment.

[crystball1] 05/2/2024 11:14

After a lot of research, I have finally bought into CARD this morning. A long term hold.

[eeza] 03/2/2024 18:32

12.90p was the actual EPS for 2023, but most analysts expect ~15.0p to 16.0p for 2024. (i.e FY 2024 which ended 3 days ago on 31 Jan). We are now in FY 2025.

[casholaa] 03/2/2024 18:03

Alternative website states basic & diluted eps 12.90p, diluted eps of 12.80p.345m shares x 4p = £13.8m. better off banking it or halving the divi given loans are due in 2025

[elsa7878] 03/2/2024 17:12

Think they should do a buy back. If Teleios are still selling surely this would make more sense.

[eeza] 03/2/2024 15:58

Assuming EPS for 2024 are ~15.00p then a 5.00p div would be 3 * covered.

[casholaa] 03/2/2024 15:47

Of note. "the Board envisages recommencing dividend payments at a level of 2-3x dividend cover" - *subject to other factors.

A dc of 2-3% is promising but, that would mean that they already have a guesstimate in mind based upon current or projected performance. How low or high the divi would be isn't disclosed.

[casholaa] 03/2/2024 15:40

From the latest Annual Report page 57:

"The Group remains prohibited from making distributions under the terms of its financing facilities until such time as the CLBILS and Tranche ‘A’ of the term loans are fully repaid. Accordingly, there were no dividend payments made in either the current or the preceding year.

The final maturity date for tranche ‘A’ of the term loans is 31 January 2024, and accordingly the earliest that dividend payments will be considered is during the FY25 financial year. Subject to continued financial performance in line with the strategic plan, the Board envisages recommencing dividend payments at a level of 2-3x dividend cover based on profit after tax, subject to a Leverage ratio assessed across the financial year of not more than 1.5x (excluding lease liabilities) being maintained after the distribution is made."

[actscap] 03/2/2024 11:17

New card factory investors website up and running. A lot cleaner than before. Great improvement

[casholaa] 03/2/2024 09:03

A Gen Z analyst would tell you that they prefer for the Tranche 'B' to go too to save on interest payments which is like throwing money away.

[crystball1] 02/2/2024 21:16

Having done a bit of research it appears that dividends were not possible until a loan was repaid. This loan was due to be repaid by 31st January 2024. Therefore, now this date has passed, might we expect the resumption of dividend payments?

[crystball1] 02/2/2024 20:17

When will they resume the payment of dividends?

[harry_david] 02/2/2024 19:12

Good summary darrin, I would add eps and p/e are moving very strongly. When the market is ready to go we will see the 50% uplift everyone is looking for.

[darrin1471] 02/2/2024 18:00

Having expressed concerns about retail sales in December, I thought CARD did well and shareholders were unlucky to see the share price fall.
No updates due before the end of April may see CARD drift lower but there is not much downside from here. Risk reward is on the upside
The 10% rise in NLW has been well flagged and CARD have shown they are able to navigate higher input costs without losing sales.

Retail in general will struggle with NLW, but those on low wages should have more spending power. More homeowners will move onto higher fixed rates and have less spending power. Lower priced imports may not be passed onto consumers as retailers offset NLW and boost margins.
Retail in general may experience swings in investor sentiment but CARD is better positioned than most.

[jsg123] 02/2/2024 17:24

Look at the US now.
They do it to load up cheap and then their rise after we close.

[jsg123] 02/2/2024 16:47

Yeah its sickening, shows what a lame sheep the UK market has become. Pathetic

[casholaa] 02/2/2024 13:36

Today's smallest bit of news that may send the Americans into a tizz is that US non-farm bogrolls is up a lot more than expected. I agree with peteret's post 5753 of 5760

[ayl30] 02/2/2024 09:10

Three - and those that don't know what they are doing