LSE:BRBY

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


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


Market Performance


7 Day Return

-4.9%

BRBY

-3.4%

GB Luxury

1.9%

GB Market


1 Year Return

12.0%

BRBY

1.5%

GB Luxury

2.4%

GB Market

Return vs Industry: BRBY exceeded the UK Luxury industry which returned 1.5% over the past year.

Return vs Market: BRBY exceeded the UK Market which returned 2.4% over the past year.


Shareholder returns

BRBYIndustryMarket
7 Day-4.9%-3.4%1.9%
30 Day-9.5%-10.6%-1.1%
90 Day-17.0%-16.6%-1.8%
1 Year14.8%12.0%4.0%1.5%7.4%2.4%
3 Year41.9%32.4%20.9%13.2%18.2%3.7%
5 Year47.4%30.3%34.1%19.7%35.7%6.1%

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?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BRBY (£19.35) is trading below our estimate of fair value (£23.53)

Significantly Undervalued: BRBY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BRBY is poor value based on its PE Ratio (23.5x) compared to the Luxury industry average (17x).

PE vs Market: BRBY is poor value based on its PE Ratio (23.5x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: BRBY is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: BRBY is overvalued based on its PB Ratio (5.5x) compared to the GB Luxury industry average (2x).


Next Steps

Future Growth

How is Burberry Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRBY's forecast earnings growth (8.5% per year) is above the savings rate (1.2%).

Earnings vs Market: BRBY's earnings (8.5% per year) are forecast to grow slower than the UK market (12.6% per year).

High Growth Earnings: BRBY's earnings are forecast to grow, but not significantly.

Revenue vs Market: BRBY's revenue (5.4% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: BRBY's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BRBY's Return on Equity is forecast to be high in 3 years time (25.6%)


Next Steps

Past Performance

How has Burberry Group performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BRBY's earnings have declined by -0.7% per year over the past 5 years.

Accelerating Growth: BRBY's earnings growth over the past year (15.6%) exceeds its 5-year average (-0.7% per year).

Earnings vs Industry: BRBY earnings growth over the past year (15.6%) exceeded the Luxury industry -2.3%.


Return on Equity

High ROE: BRBY's Return on Equity (23.2%) is considered high.


Return on Assets

ROA vs Industry: BRBY has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: BRBY has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Burberry Group's financial position?


Financial Position Analysis

Short Term Liabilities: BRBY's short term assets (£1.6B) exceeds its short term liabilities (£640.1M)

Long Term Liabilities: BRBY's short term assets (1.6B) exceeds its long term liabilities (232.1M)


Debt to Equity History and Analysis

Debt Level: BRBY's debt to equity ratio (2.5%) is considered satisfactory

Reducing Debt: BRBY's debt to equity ratio has reduced from 11.8% to 2.5% over the past 5 years.

Debt Coverage: BRBY's debt is well covered by operating cash flow (1105.9%).

Interest Coverage: BRBY earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BRBY has a high level of physical assets or inventory.

Debt Coverage by Assets: BRBY's debt is covered by short term assets (assets are 43.241930x debt).


Next Steps

Dividend

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

2.20%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.0%markettop25%5.4%industryaverage2.3%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BRBY's dividend (2.2%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: BRBY's dividend (2.2%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: BRBY's dividends per share have been stable in the past 10 years.

Growing Dividend: BRBY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.6%), BRBY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRBY's dividends in 3 years are forecast to be well covered by earnings (48.8% payout ratio).


Next Steps

Management

What is the CEO of Burberry Group's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Marco Gobbetti (60yo)

2.3yrs

Tenure

UK£3,965,000

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Marco's compensation with company performance.


Management Age and Tenure

4.2yrs

Average Tenure

Experienced Management: BRBY's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

59yo

Average Age

Experienced Board: BRBY's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£426,78524 Jun 19
Julie Brown
EntityIndividual
Role
Member of the Board of Directors
CFO, COO & Director
Shares24,051
Max PriceUK£17.75
BuyUK£8,11919 Jun 19
Ronald Frasch
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares456
Max PriceUK£17.81
BuyUK£27405 Feb 19
Carolyn McCall
EntityIndividual
Role
Member of the Board of Directors
Independent Non Executive Director
Shares15
Max PriceUK£18.28
BuyUK£1,97405 Feb 19
Julie Brown
EntityIndividual
Role
Member of the Board of Directors
CFO, COO & Director
Shares108
Max PriceUK£18.28
BuyUK£19,71506 Dec 18
Matthew Key
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,150
Max PriceUK£17.14

Ownership Breakdown


Management Team

  • Marco Gobbetti (60yo)

    CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£3.97m
  • Sarah Manley

    Chief Marketing Officer

    • Tenure: 9yrs
  • Stephen Gilbert

    Senior Vice President of Architecture

    • Tenure: 0yrs
  • Fabrizio Fabbro

    Senior Vice President of Creative Operations

    • Tenure: 0yrs
  • Annabel Gleeson

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Jenna Littler

    Senior Vice President of Global Integration

    • Tenure: 5.7yrs
  • Julie Brown (57yo)

    CFO, COO & Director

    • Tenure: 2.8yrs
    • Compensation: UK£2.00m
  • Andrew Roberts

    Vice President of Corporate Relations

    • Tenure: 0yrs
  • Edward Rash

    General Counsel

    • Tenure: 0yrs
  • Erica Bourne

    Chief Human Resources Officer

    • Tenure: 0yrs

Board Members

  • Debra Lee (64yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Ron Frasch (70yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£156.00k
  • Fabiola Arredondo (52yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£188.00k
  • Gerry Murphy (64yo)

    Chairman

    • Tenure: 1.3yrs
    • Compensation: UK£372.00k
  • Jeremy Darroch (56yo)

    Senior Independent Director

    • Tenure: 2.3yrs
    • Compensation: UK£130.00k
  • Carolyn McCall (58yo)

    Independent Non Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£83.00k
  • Orna Ni-Chionna (63yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£117.00k
  • Matthew Key (56yo)

    Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: UK£90.00k
  • Marco Gobbetti (60yo)

    CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£3.97m
  • Julie Brown (57yo)

    CFO, COO & Director

    • Tenure: 2.8yrs
    • Compensation: UK£2.00m

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£7.910b
  • Shares outstanding: 408.79m
  • 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 2 ORD SHUSUSDSep 2009
BB2ADB (Deutsche Boerse AG)UNSP ADR EACH REP 2 ORD SHDEEURSep 2009

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:36
End of Day Share Price2019/10/16 00:00
Earnings2019/03/30
Annual Earnings2019/03/30


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.