LSE:BRBY

Stock Analysis Report

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Market Cap

UK£8.4b

Last Updated

2021/07/27 22:50 UTC

Data Sources

Company Financials +

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 proven 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

Stable Share Price: BRBY is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BRBY's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

7.0%

BRBY

6.3%

GB Luxury

2.9%

GB Market


1 Year Return

65.5%

BRBY

63.0%

GB Luxury

19.1%

GB Market

Return vs Industry: BRBY exceeded the UK Luxury industry which returned 63% over the past year.

Return vs Market: BRBY exceeded the UK Market which returned 19.1% over the past year.


Shareholder returns

BRBYIndustryMarket
7 Day7.0%6.3%2.9%
30 Day-7.3%-2.6%-0.8%
90 Day0%1.9%1.3%
1 Year69.0%65.5%66.1%63.0%24.5%19.1%
3 Year4.0%-1.0%-25.7%-29.3%12.0%-0.8%
5 Year78.1%61.9%3.9%-5.1%41.2%14.0%

Long-Term 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?

22.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRBY (£20.85) is trading above our estimate of fair value (£17.42)

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


Price To Earnings Ratio

PE vs Industry: BRBY is good value based on its PE Ratio (22.4x) compared to the European Luxury industry average (31.7x).

PE vs Market: BRBY is good value based on its PE Ratio (22.4x) compared to the UK market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: BRBY is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: BRBY's PB Ratio (5.4x) is in line with the GB Luxury industry average.


Future Growth

How is Burberry Group forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRBY's forecast earnings growth (7.1% per year) is above the savings rate (0.9%).

Earnings vs Market: BRBY's earnings (7.1% per year) are forecast to grow slower than the UK market (16.9% per year).

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

Revenue vs Market: BRBY's revenue (8% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: BRBY's revenue (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 high in 3 years time (21.4%)


Past Performance

How has Burberry Group performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRBY has a large one-off gain of £105.8M impacting its March 27 2021 financial results.

Growing Profit Margin: BRBY's current net profit margins (16%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: BRBY's earnings have declined by 8.3% per year over the past 5 years.

Accelerating Growth: BRBY's earnings growth over the past year (205.5%) exceeds its 5-year average (-8.3% per year).

Earnings vs Industry: BRBY earnings growth over the past year (205.5%) exceeded the Luxury industry -9.2%.


Return on Equity

High ROE: BRBY's Return on Equity (24.1%) is considered high.


Financial Health

How is Burberry Group's financial position?


Financial Position Analysis

Short Term Liabilities: BRBY's short term assets (£2.0B) exceed its short term liabilities (£702.8M).

Long Term Liabilities: BRBY's short term assets (£2.0B) exceed its long term liabilities (£1.2B).


Debt to Equity History and Analysis

Debt Level: BRBY's debt to equity ratio (22%) is considered satisfactory.

Reducing Debt: BRBY's debt to equity ratio has increased from 3.2% to 22% over the past 5 years.

Debt Coverage: BRBY's debt is well covered by operating cash flow (172.7%).

Interest Coverage: BRBY's interest payments on its debt are well covered by EBIT (15.2x coverage).


Balance Sheet


Dividend

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

2.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BRBY's dividend (2.04%) is higher than the bottom 25% of dividend payers in the UK market (1.3%).

High Dividend: BRBY's dividend (2.04%) is low compared to the top 25% of dividend payers in the UK market (3.98%).


Stability and Growth of Payments

Stable Dividend: BRBY's dividend payments have been volatile 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 reasonably low payout ratio (45.7%), BRBY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRBY's dividends in 3 years are forecast to be covered by earnings (55.4% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Marco Gobbetti (62 yo)

4yrs

Tenure

UK£2,245,000

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 ($USD3.12M) is about average for companies of similar size in the UK market ($USD3.63M).

Compensation vs Earnings: Marco's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BRBY's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: BRBY's board of directors are considered experienced (3.5 years average tenure).


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£8.425b
  • Shares outstanding: 404.07m
  • Website: https://www.burberryplc.com

Number of Employees


Location

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

Listings


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 Analysis2021/07/27 22:50
End of Day Share Price2021/07/27 00:00
Earnings2021/03/27
Annual Earnings2021/03/27


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.