LSE:BRBY

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Burberry Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRBY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.7%

BRBY

-7.2%

GB Luxury

-3.7%

GB Market


1 Year Return

-33.0%

BRBY

-35.8%

GB Luxury

-19.3%

GB Market

Return vs Industry: BRBY exceeded the UK Luxury industry which returned -36.5% over the past year.

Return vs Market: BRBY underperformed the UK Market which returned -19.7% over the past year.


Shareholder returns

BRBYIndustryMarket
7 Day-7.7%-7.2%-3.7%
30 Day-14.0%-11.5%-4.2%
90 Day9.3%8.3%-4.3%
1 Year-32.7%-33.0%-35.6%-35.8%-16.2%-19.3%
3 Year-23.9%-27.6%-52.1%-54.6%-13.3%-24.0%
5 Year9.9%-1.2%-41.5%-47.3%10.2%-14.6%

Price Volatility Vs. Market

How volatile is Burberry Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Burberry Group undervalued compared to its fair value and its price relative to the market?

45.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRBY (£13.64) is trading above our estimate of fair value (£8.73)

Significantly Below Fair Value: BRBY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRBY is poor value based on its PE Ratio (45.7x) compared to the XE Luxury industry average (27.7x).

PE vs Market: BRBY is poor value based on its PE Ratio (45.7x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: BRBY is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: BRBY is overvalued based on its PB Ratio (4.5x) compared to the GB Luxury industry average (3.2x).


Next Steps

Future Growth

How is Burberry Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRBY's forecast earnings growth (30.1% per year) is above the savings rate (1.2%).

Earnings vs Market: BRBY's earnings (30.1% per year) are forecast to grow faster than the UK market (23.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BRBY's revenue (1.8% per year) is forecast to grow slower than the UK market (5.8% per year).

High Growth Revenue: BRBY's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRBY's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has Burberry Group performed over the past 5 years?

-3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRBY has a large one-off loss of £250.6M impacting its March 28 2020 financial results.

Growing Profit Margin: BRBY's current net profit margins (4.6%) are lower than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: BRBY's earnings have declined by 3.5% per year over the past 5 years.

Accelerating Growth: BRBY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BRBY had negative earnings growth (-64.1%) over the past year, making it difficult to compare to the Luxury industry average (-41.4%).


Return on Equity

High ROE: BRBY's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is Burberry Group's financial position?


Financial Position Analysis

Short Term Liabilities: BRBY's short term assets (£1.7B) exceed its short term liabilities (£730.5M).

Long Term Liabilities: BRBY's short term assets (£1.7B) exceed its long term liabilities (£1.3B).


Debt to Equity History and Analysis

Debt Level: BRBY's debt to equity ratio (28%) is considered satisfactory.

Reducing Debt: BRBY's debt to equity ratio has increased from 4.5% to 28% over the past 5 years.

Debt Coverage: BRBY's debt is well covered by operating cash flow (133.4%).

Interest Coverage: BRBY's interest payments on its debt are well covered by EBIT (23.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Burberry Group current dividend yield, its reliability and sustainability?

2.37%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BRBY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BRBY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BRBY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BRBY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BRBY is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BRBY's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Marco Gobbetti (61 yo)

3.25yrs

Tenure

UK£1,621,000

Compensation

Mr. Marco Gobbetti has been the Chief Executive Officer of Burberry Group Plc since July 5, 2017 and serves as its Executive Director. Mr. Gobbetti served as Executive Chairman of Asia Pacific and Middle E ...


CEO Compensation Analysis

Compensation vs Market: Marco's total compensation ($USD2.10M) is below average for companies of similar size in the UK market ($USD3.03M).

Compensation vs Earnings: Marco's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Marco Gobbetti
CEO & Executive Director3.25yrsUK£1.62m0.047%
£ 2.6m
Julie Brown
CFO, COO & Director3.75yrsUK£1.03m0.037%
£ 2.0m
Mark McClennon
Chief Information Officerno datano datano data
Julian Easthope
Vice President of Investor Relationsno datano datano data
Edward Rash
General Counselno datano datano data
Andrew Roberts
Vice President of Corporate Relationsno datano datano data
Sarah Manley
Chief Marketing Officer10yrsno datano data
Erica Bourne
Chief People Officerno datano datano data
Stephen Gilbert
Senior Vice President of Architectureno datano datano data
Fabrizio Fabbro
Senior Vice President of Creative Operationsno datano datano data
Jenna Littler
Senior Vice President of Global Integration6.58yrsno datano data
Marco Gentile
President of Europeno datano datano data

5.2yrs

Average Tenure

58yo

Average Age

Experienced Management: BRBY's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marco Gobbetti
CEO & Executive Director3.25yrsUK£1.62m0.047%
£ 2.6m
Julie Brown
CFO, COO & Director3.75yrsUK£1.03m0.037%
£ 2.0m
Debra Lee
Independent Non-Executive Director1yrUK£59.00k0.00011%
£ 6.1k
Ronald Frasch
Independent Non-Executive Director3.08yrsUK£122.00k0.00043%
£ 23.7k
Fabiola Arredondo
Independent Non-Executive Director5.58yrsUK£147.00k0.0019%
£ 102.3k
Gerard Murphy
Chairman2.25yrsUK£431.00k0.0012%
£ 68.2k
Dame Carolyn McCall
Senior Independent Director0.25yrUK£87.00k0.00067%
£ 36.9k
Orna Ni-Chionna
Independent Non-Executive Director2.75yrsUK£117.00k0.00076%
£ 41.8k
Matthew Key
Independent Non-Executive Director7.08yrsUK£118.00k0.0015%
£ 80.3k
Samuel Fischer
Independent Non-Executive Director0.92yrUK£44.00k0.00074%
£ 40.7k

2.9yrs

Average Tenure

60yo

Average Age

Experienced Board: BRBY's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BRBY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Burberry Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Burberry Group plc
  • Ticker: BRBY
  • Exchange: LSE
  • Founded: 1856
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: UK£5.502b
  • Shares outstanding: 403.54m
  • Website: https://www.burberryplc.com

Number of Employees


Location

  • Burberry Group plc
  • Horseferry House
  • Horseferry Road
  • London
  • Greater London
  • SW1P 2AW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBRY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2002
BRBYLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2002
BB2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2002
BRBYLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2002
BRBY NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 2002
BURB.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REP 1 ORD SHUSUSDSep 2009
BB2ADB (Deutsche Boerse AG)UNSP ADR EACH REP 1 ORD SHDEEURSep 2009

Biography

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 21:24
End of Day Share Price2020/10/29 00:00
Earnings2020/03/28
Annual Earnings2020/03/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.