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Should Card Factory plc (LON:CARD) Be Your Next Stock Pick?

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Card Factory plc (LSE:CARD), it is a financially-healthy , dividend-paying company with a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on Card Factory here.

Proven track record with adequate balance sheet and pays a dividend

CARD delivered a satisfying double-digit returns of 26.69% in the most recent year Not surprisingly, CARD outperformed its industry which returned 12.96%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. CARD is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that CARD manages its cash and cost levels well, which is an important determinant of the company’s health. CARD appears to have made good use of debt, producing operating cash levels of 0.44x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

LSE:CARD Income Statement Jun 19th 18
LSE:CARD Income Statement Jun 19th 18

CARD’s high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.

LSE:CARD Historical Dividend Yield Jun 19th 18
LSE:CARD Historical Dividend Yield Jun 19th 18

Next Steps:

For Card Factory, I’ve compiled three fundamental aspects you should further examine:

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  1. Future Outlook: What are well-informed industry analysts predicting for CARD’s future growth? Take a look at our free research report of analyst consensus for CARD’s outlook.

  2. Valuation: What is CARD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CARD is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CARD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.