Consumer Discretionary
As the only vertically integrated brick-and-mortar greeting card retailer in the UK, CARD holds a unique position in the market. Pernas Research believes the company is well placed to continue to gain market share in greeting cards and increase its share in the growing market of celebration essentials and gifts. Like most of the companies they look for, with CARD trading at only ~7.5x EV to normalised FCF, the market perception is that the business is getting weaker when it is, in fact, getting stronger. Pernas expects FCF to grow at low teens over the next five years and the cash flow generation over this period will be greater than the current EV of the firm. Sees 50%+ upside.
Edition: 186
- 17 May, 2024