Moonpig (LSE:MOON) stood out within the FTSE 250 at present (25 June), flying 10.7% increased to 248p. This brings the year-to-date positive aspects to round 23%, simply beating the mid-cap index (+3.2%).
I had an inkling this may occur after digging into the corporate in December. Again then, I had simply used the Moonpig app to create a personalised, AI-enhanced Christmas card for my daughter. I used to be impressed with the tech agency’s buyer proposition.
Since then, I’ve highlighted Moonpig virtually each month. However I’m nonetheless bullish on the inventory shifting ahead, regardless of the upper share worth. Right here’s why.
Pigs may fly
As a fast reminder, Moonpig is the main on-line greetings card firm within the UK and Netherlands (through the Greetz model). Prospects can personalise playing cards, add AI-generated stickers, create voice and video messages, and ship items and flowers.
Immediately, the corporate launched its outcomes for the 12 months to 30 April (FY26). And regardless of the countless, grinding cost-of-living disaster, the numbers have been strong:
- Income up 6.5% to £373m, with the flagship Moonpig model rising at 8.6%.
- Adjusted pre-tax revenue rose 13.4% to £76.5m, beating market consensus.
- Adjusted earnings per share (EPS) development of 19.5%.
- Free Money Movement elevated 11.2% to £73.5m.
- Whole dividend hiked 25%.
One essential differentiator for Moonpig is its information benefit. Each time a brand new buyer buys a card for a birthday or anniversary, the database of buyer reminders grows.
Final yr, this elevated 11.2% to 113m, with round 40% of orders positioned inside seven days of Moonpig/Greetz giving them a reminder. Add within the subscription service, which elevated by 29.3% to 1.2m members, and there’s a excessive diploma of buyer loyalty right here.
One other factor I like is the recognition of artistic options, together with AI stickers (the place the software generates a customized picture in your card). These have been added to 31m greeting playing cards in the course of the yr, up 102%.
After all, AI lowers the boundaries to content material creation for everybody. However not each agency has in depth fulfilment capabilities, a trusted model, and a dataset of 113m buyer reminders.
Day-after-day, hundreds of thousands of consumers belief us with a few of life’s most vital moments, from birthdays and anniversaries to celebrations…In a world more and more formed by know-how and synthetic intelligence, the human connections we assist create really feel extra vital than ever.
CEO Catherine Faiers.
What worries me?
The yr wasn’t good, nonetheless. One barely disappointing factor for me was that lively prospects solely grew 2.8% to 12.3m.
Are extra inflation-weary folks reducing again on card shopping for usually? If that’s the case, this might change into a near-term risk to development.
In the meantime, Greetz grew income by 1.5% in fixed forex, suggesting it’s struggling to seek out development momentum in comparison with the UK enterprise.
That stated, the Moonpig model is seeing development in new markets (+33%), together with in Eire, Australia, and the US.
My takeaway
The inventory’s nonetheless buying and selling fairly, at round 13 occasions ahead earnings. And Moonpig plans to accumulate £65m value of its personal shares this yr, after final yr’s £62m buyback, which ought to assist increase the important thing EPS metric.
Wanting forward, I stay bullish. There’s a structural shift happening in card shopping for, from offline to on-line, and Moonpig is main the way in which with a big and dependable buyer base.
I reckon the shares are nonetheless value contemplating.
Must you make investments £5,000 in Moonpig Group Plc proper now?
When investing knowledgeable Mark Rogers and his workforce have a inventory tip, it might pay to pay attention. In any case, the flagship Twelfth Magpie Share Advisor publication he has run for almost a decade has offered hundreds of paying members with high inventory suggestions from the UK and US markets.
And proper now, Mark thinks there are 6 standout shares that traders ought to contemplate shopping for. Need to see if Moonpig Group Plc made the record?
Ben McPoland has no place in any of the businesses talked about.
Moonpig (LSE:MOON) stood out within the FTSE 250 at present (25 June), flying 10.7% increased to 248p. This brings the year-to-date positive aspects to round 23%, simply beating the mid-cap index (+3.2%).
I had an inkling this may occur after digging into the corporate in December. Again then, I had simply used the Moonpig app to create a personalised, AI-enhanced Christmas card for my daughter. I used to be impressed with the tech agency’s buyer proposition.
Since then, I’ve highlighted Moonpig virtually each month. However I’m nonetheless bullish on the inventory shifting ahead, regardless of the upper share worth. Right here’s why.
Pigs may fly
As a fast reminder, Moonpig is the main on-line greetings card firm within the UK and Netherlands (through the Greetz model). Prospects can personalise playing cards, add AI-generated stickers, create voice and video messages, and ship items and flowers.
Immediately, the corporate launched its outcomes for the 12 months to 30 April (FY26). And regardless of the countless, grinding cost-of-living disaster, the numbers have been strong:
- Income up 6.5% to £373m, with the flagship Moonpig model rising at 8.6%.
- Adjusted pre-tax revenue rose 13.4% to £76.5m, beating market consensus.
- Adjusted earnings per share (EPS) development of 19.5%.
- Free Money Movement elevated 11.2% to £73.5m.
- Whole dividend hiked 25%.
One essential differentiator for Moonpig is its information benefit. Each time a brand new buyer buys a card for a birthday or anniversary, the database of buyer reminders grows.
Final yr, this elevated 11.2% to 113m, with round 40% of orders positioned inside seven days of Moonpig/Greetz giving them a reminder. Add within the subscription service, which elevated by 29.3% to 1.2m members, and there’s a excessive diploma of buyer loyalty right here.
One other factor I like is the recognition of artistic options, together with AI stickers (the place the software generates a customized picture in your card). These have been added to 31m greeting playing cards in the course of the yr, up 102%.
After all, AI lowers the boundaries to content material creation for everybody. However not each agency has in depth fulfilment capabilities, a trusted model, and a dataset of 113m buyer reminders.
Day-after-day, hundreds of thousands of consumers belief us with a few of life’s most vital moments, from birthdays and anniversaries to celebrations…In a world more and more formed by know-how and synthetic intelligence, the human connections we assist create really feel extra vital than ever.
CEO Catherine Faiers.
What worries me?
The yr wasn’t good, nonetheless. One barely disappointing factor for me was that lively prospects solely grew 2.8% to 12.3m.
Are extra inflation-weary folks reducing again on card shopping for usually? If that’s the case, this might change into a near-term risk to development.
In the meantime, Greetz grew income by 1.5% in fixed forex, suggesting it’s struggling to seek out development momentum in comparison with the UK enterprise.
That stated, the Moonpig model is seeing development in new markets (+33%), together with in Eire, Australia, and the US.
My takeaway
The inventory’s nonetheless buying and selling fairly, at round 13 occasions ahead earnings. And Moonpig plans to accumulate £65m value of its personal shares this yr, after final yr’s £62m buyback, which ought to assist increase the important thing EPS metric.
Wanting forward, I stay bullish. There’s a structural shift happening in card shopping for, from offline to on-line, and Moonpig is main the way in which with a big and dependable buyer base.
I reckon the shares are nonetheless value contemplating.
Must you make investments £5,000 in Moonpig Group Plc proper now?
When investing knowledgeable Mark Rogers and his workforce have a inventory tip, it might pay to pay attention. In any case, the flagship Twelfth Magpie Share Advisor publication he has run for almost a decade has offered hundreds of paying members with high inventory suggestions from the UK and US markets.
And proper now, Mark thinks there are 6 standout shares that traders ought to contemplate shopping for. Need to see if Moonpig Group Plc made the record?
Ben McPoland has no place in any of the businesses talked about.
