NYSE:BURL

Stock Analysis Report

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Market Cap

US$22.2b

Last Updated

2021/08/01 22:21 UTC

Data Sources

Company Financials +

Executive Summary

Burlington Stores, Inc. operates as a retailer of branded apparel products in the United States. More Details


Snowflake Analysis

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Burlington Stores's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BURL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BURL's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

BURL

-0.9%

US Specialty Retail

-0.4%

US Market


1 Year Return

78.1%

BURL

65.8%

US Specialty Retail

35.9%

US Market

Return vs Industry: BURL exceeded the US Specialty Retail industry which returned 63.1% over the past year.

Return vs Market: BURL exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

BURLIndustryMarket
7 Day1.5%-0.9%-0.4%
30 Day0.9%-1.6%-0.3%
90 Day2.5%-0.9%3.1%
1 Year78.1%78.1%67.0%65.8%38.0%35.9%
3 Year117.2%117.2%92.6%85.8%62.9%52.7%
5 Year339.1%339.1%107.3%93.4%121.3%96.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Burlington Stores undervalued compared to its fair value and its price relative to the market?

76.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BURL ($334.8) is trading above our estimate of fair value ($332.54)

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


Price To Earnings Ratio

PE vs Industry: BURL is poor value based on its PE Ratio (76.9x) compared to the US Specialty Retail industry average (13.6x).

PE vs Market: BURL is poor value based on its PE Ratio (76.9x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: BURL is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: BURL is overvalued based on its PB Ratio (41.1x) compared to the US Specialty Retail industry average (3.2x).


Future Growth

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

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BURL's forecast earnings growth (16% per year) is above the savings rate (2%).

Earnings vs Market: BURL's earnings (16% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: BURL's revenue (10.4% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: BURL's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BURL's Return on Equity is forecast to be very high in 3 years time (69.6%).


Past Performance

How has Burlington Stores performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BURL has a large one-off gain of $249.9M impacting its May 1 2021 financial results.

Growing Profit Margin: BURL's current net profit margins (4%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: BURL's earnings have declined by 11.2% per year over the past 5 years.

Accelerating Growth: BURL's earnings growth over the past year (395.8%) exceeds its 5-year average (-11.2% per year).

Earnings vs Industry: BURL earnings growth over the past year (395.8%) exceeded the Specialty Retail industry 157.5%.


Return on Equity

High ROE: Whilst BURL's Return on Equity (53.39%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Burlington Stores's financial position?


Financial Position Analysis

Short Term Liabilities: BURL's short term assets ($2.7B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: BURL's short term assets ($2.7B) do not cover its long term liabilities ($4.8B).


Debt to Equity History and Analysis

Debt Level: BURL's debt to equity ratio (382.7%) is considered high.

Reducing Debt: BURL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: BURL's debt is well covered by operating cash flow (34.6%).

Interest Coverage: BURL's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

What is Burlington Stores's current dividend yield, its reliability and sustainability?

0.20%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BURL'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 BURL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Michael O'Sullivan (57 yo)

1.83yrs

Tenure

US$9,560,206

Compensation

Mr. Michael B. O'Sullivan serves as the Chief Executive Officer and a Director at Burlington Stores, Inc. since September 16, 2019. He served as the President and Chief Operating Officer of Ross Stores Inc...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD9.56M) is about average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

Experienced Management: BURL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: BURL's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BURL insiders have only sold shares 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

Burlington Stores, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Burlington Stores, Inc.
  • Ticker: BURL
  • Exchange: NYSE
  • Founded: 1972
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$22.199b
  • Shares outstanding: 66.30m
  • Website: https://www.burlingtoninvestors.com

Number of Employees


Location

  • Burlington Stores, Inc.
  • 2006 Route 130 North
  • Burlington
  • New Jersey
  • 8016
  • United States

Listings


Biography

Burlington Stores, Inc. operates as a retailer of branded apparel products in the United States. The company offers fashion-focused merchandise, including women’s ready-to-wear apparel, menswear, youth app...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:21
End of Day Share Price2021/07/30 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


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.