Character Group - An impressive earnings history

PUBLISHED: Jun 05 2020 @ 05:39 | Comments (0) |

Character Group (LSE:CCT), the toy creator and distributor has an impressive history of earnings and dividends despite recent falls. Its shares are trading at 230p – 252p and market capitalisation is £2.52 x 21.36m shares = £53.8m.

Earnings and dividends

Half year to end February	Earnings per share, p	Dividends per share, p	Revenue, £m	Profit after tax, £m
2020H1	9.6	2	51.7	£1.8m
2019H1	21	13	58.8	£4.2m
2018H1	17	10	50.5	£3.6m
2017H1	27	8	61.5	£5.8m
Yearend 31 August
2020 my estimate	11.7	4	90	2.5
2019	43.27	25	120	8.4
2018	45.63	23	106	9.6
2017	47.46	19	115	10.0
2016	50.3	15	121	10.8
2015	48.56	11	99	10.2
2014	27.66	7.25	98	5.9
2013	3.05	6.6	67	0.7
2012	25.58	6.6	75	5.8
2011	28.47	6.0	95	6.8

Cyclically adjusted price earnings ratio

Average EPS over 10 years (including EPS estimated for 2020) = 33.1p

The CAPE, using average earnings per share over ten years in the denominator, is 252p/33.1p = 7.6. This is significantly below the market average of around 14.

Let’s be pessimistic and assume a loss of one-third of profits compared with the average over the five years to August 2019 (47p per share) because of the loss of the Peppa Pig plastic toy range and the after effects of the COVID-19 crisis.

Then the future annual earnings per share will be 31p.

That would put the shares on an earnings yield of 31p/252p = 12.3%, which is prett………………To read more subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1

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