Download PDF

1. Company Snapshot

1.a. Company Description

Card Factory plc operates as a specialist retailer of greeting cards in the United Kingdom.It operates through two segments, Card Factory and Getting Personal.The company designs, sources, prints, warehouses, produces, distributes, and sells greeting cards, dressings, balloons, and gifts.


It also provides cards for various occasions; and online personalized cards and gifts.The company offers its products through various retail locations, as well as through its websites, such as cardfactory.co.uk and gettingpersonal.co.uk.It operates approximately 1,020 Card Factory stores; and 4 franchise stores.


Card Factory plc was founded in 1992 and is headquartered in Wakefield, the United Kingdom.

Show Full description

1.b. Last Insights on CARD

Card Factory's recent performance was driven by the acquisition of Funky Pigeon for £24m, expanding its offerings in personalised cards and gifts. This strategic move is expected to boost sales, with Funky Pigeon generating around £32m in average annual sales. Additionally, the company's strong financials, including a 6.3% rise in underlying pre-tax profits to £66m and a 6.2% increase in revenues to £542.5m, have likely contributed to its recent performance. Furthermore, the company's focus on dividend stocks, with yields up to 5%, has made it an attractive option for investors seeking stable income in uncertain market conditions.

1.c. Company Highlights

2. Card Factory's Resilient Interim Performance Amidst Economic Challenges

Card Factory reported a total group revenue of GBP 247.6 million, representing a 5.9% increase, driven by a 2.9% store base growth and 1.5% like-for-like sales growth. However, adjusted profit before tax was impacted by investments. The actual EPS came in at 0.09397, falling short of estimates at 0.135. Despite the challenging economic environment, the company delivered a resilient financial performance, underpinned by its commitment to predictable, sustainable, and growing returns to shareholders.

Publication Date: Oct -28

📋 Highlights
  • Revenue Growth & Store Expansion: Total group revenue rose 5.9% to GBP 247.6m, with 13 new stores opening in H1 FY '26, surpassing 1,100 total stores.
  • Funky Pigeon Acquisition Impact: The GBP 24.1m acquisition added GBP 32m in sales and GBP 5m EBITDA, with over GBP 5m in expected synergies by FY '27.
  • Adjusted Profit & Strategic Investments: Adjusted PBT declined due to strategic investments, but underlying sales growth in key categories (e.g., baby gifts +28% to GBP 1.3m) drove resilience.
  • Cost Savings & Share Buybacks: GBP 9m cost savings achieved in H1 FY '26, alongside a 3–4m share repurchase program annually to offset dilution.
  • Full-Year Guidance & Growth Drivers: Confirmed GBP 650m revenue and 14% PBT targets for FY '27, with FY '26 adjusted PBT expected to grow mid- to high-single digits.

Acquisition of Funky Pigeon: A Key Growth Driver

The acquisition of Funky Pigeon added GBP 32 million in sales and GBP 5 million in EBITDA to the group, with expected synergies of over GBP 5 million. This strategic move is expected to accelerate online growth and create a structurally profitable online business. As Darcy Willson-Rymer noted, the integration is underway, focusing on reconfiguring manufacturing and fulfillment, strategic planning, and product review.

Growth Strategy and Outlook

Card Factory's growth strategy is centered on transforming the business into a leading global celebrations group. The company is expanding into the gift and celebration essentials categories, addressing a GBP 13.4 billion market opportunity. With a strong commercial offering and on-track delivery of its Simplify and Scale program, the company remains confident in delivering full-year expectations, expecting mid- to high single-digit percentage growth in adjusted PBT for FY '26.

Valuation and Key Metrics

With a P/E Ratio of 7.52, P/B Ratio of 1.04, and Dividend Yield of 4.66%, the market appears to have factored in the company's growth prospects. The EV/EBITDA ratio stands at 4.92, indicating a reasonable valuation. Analysts estimate next year's revenue growth at 8.8%, suggesting a positive outlook. The company's ROE stands at 14.51%, indicating a decent return on equity.

Cost Savings and Operational Efficiency

The company's cost savings program achieved GBP 9 million in the first half, with further savings expected in the second half. The rollout of the point-of-sale upgrade will lay the foundation for better engagement with customers in the future. With a strong Christmas range and operational preparations on track, the company is well-prepared for the peak trading period.

3. NewsRoom

Card image cap

UK Penny Stocks With Potential: 3 Picks Under £600M Market Cap

Nov -28

Source:

Card image cap

North America Photo Printing and Merchandise Market Report 2025-2033, Profiles of American Greetings Corp, Bay Photo, Card Factory, Cimpress, Digitalab, Eastman Kodak, Hallmark Cards, and HPE

Nov -28

Source:

Card image cap

Card Factory plc's (LON:CARD) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?

Nov -28

Source:

Card image cap

Card Factory (LON:CARD) Is Due To Pay A Dividend Of £0.013

Oct -30

Source:

Card image cap

Next 15 Group Leads Our Trio Of UK Penny Stocks

Oct -22

Source:

Card image cap

3 European Undervalued Small Caps With Recent Insider Activity

Oct -17

Source:

Card image cap

Card Factory's (LON:CARD) Dividend Will Be £0.013

Oct -16

Source:

Card image cap

UK Penny Stock Picks: Brickability Group And 2 Other Promising Opportunities

Sep -23

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.97%)

6. Segments

Card Factory

Expected Growth: 6%

Card Factory's 6% growth is driven by increasing demand for personalized greeting cards, expansion into new store locations, and a strong online presence. Additionally, the company's focus on everyday low prices and a wide range of products has helped to attract price-conscious consumers. Furthermore, Card Factory's ability to adapt to changing consumer trends, such as the rise of digital greetings, has also contributed to its growth.

Partnerships

Expected Growth: 5%

Card Factory plc's 5% growth in partnerships is driven by strategic collaborations with popular brands, increasing online presence, and expansion into new markets. Additionally, the company's focus on personalized products and competitive pricing has attracted more partners, leading to increased revenue and growth.

Card Factory Online

Expected Growth: 7%

Card Factory Online's 7% growth is driven by increasing online shopping adoption, effective e-commerce platform, and targeted marketing strategies. Additionally, the company's focus on personalized products, competitive pricing, and convenient delivery options have contributed to its online segment growth.

Getting Personal

Expected Growth: 5%

Card Factory's 5% growth in Getting Personal segment is driven by increasing demand for personalized gifts, expansion of online channels, and strategic partnerships. Additionally, the company's focus on product innovation, competitive pricing, and effective marketing strategies have contributed to the growth. Furthermore, the rising trend of gifting and celebrations has also boosted sales.

Other

Expected Growth: 4%

Card Factory plc's 4% growth is driven by increasing demand for greeting cards and gifts, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved operational efficiency, and effective cost management have contributed to its growth.

7. Detailed Products

Greetings Cards

A wide range of greeting cards for various occasions such as birthdays, weddings, and holidays

Gifts

A variety of gifts including plush toys, mugs, and ornaments for different occasions

Partyware

Party decorations, balloons, and accessories for kids' and adults' parties

Gift Wrap and Bags

A range of gift wrapping papers, bags, and accessories for beautifully presenting gifts

Stationery

A selection of notebooks, journals, and pens for everyday use

Personalized Cards and Gifts

Customizable cards and gifts with names, photos, and messages

8. Card Factory plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Card Factory plc faces moderate threat from substitutes as customers have limited alternatives for personalized greeting cards and gifts. However, the rise of digital greetings and online platforms may pose a threat to the company's sales.

Bargaining Power Of Customers

Card Factory plc's customers have low bargaining power due to the company's strong brand presence and wide range of products. Customers are also fragmented, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Card Factory plc's suppliers have moderate bargaining power due to the company's dependence on a few large suppliers for raw materials. However, the company's scale of operations and long-term contracts help mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low for Card Factory plc due to the company's established brand presence, economies of scale, and high barriers to entry in the greeting cards and gifts market.

Intensity Of Rivalry

The intensity of rivalry is high in the greeting cards and gifts market, with Card Factory plc facing competition from established players and new entrants. The company needs to focus on differentiating its products and services to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.21%
Debt Cost 11.63%
Equity Weight 81.79%
Equity Cost 13.93%
WACC 13.51%
Leverage 22.26%

11. Quality Control: Card Factory plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Clas Ohlson

A-Score: 5.7/10

Value: 3.2

Growth: 6.2

Quality: 7.1

Yield: 5.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Betterware de México

A-Score: 5.5/10

Value: 5.4

Growth: 5.6

Quality: 5.5

Yield: 10.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
Card Factory

A-Score: 5.4/10

Value: 8.5

Growth: 4.2

Quality: 6.5

Yield: 3.8

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Pets at Home

A-Score: 5.2/10

Value: 7.8

Growth: 4.9

Quality: 5.8

Yield: 7.5

Momentum: 1.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Matas

A-Score: 5.0/10

Value: 6.4

Growth: 6.2

Quality: 3.5

Yield: 2.5

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Mobilezone

A-Score: 4.8/10

Value: 6.0

Growth: 2.9

Quality: 4.2

Yield: 9.4

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.98$

Current Price

0.98$

Potential

-0.00%

Expected Cash-Flows