Burlington Stores Receives Rating Upgrade, Achieves 5-Year Growth Outlook
December 29, 2023
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Burlington Stores ($NYSE:BURL) recently received a significant rating upgrade, indicating that the company’s 5-year growth outlook is achievable. Burlington Stores is a publicly traded retail company based in the United States, specializing in off-price apparel and home décor. The company operates a large portfolio of stores, including its namesake stores and other banners, as well as online retailing. The rating upgrade is a testament to the company’s strong operational performance and successful strategies to drive growth. Burlington Stores has been able to consistently beat its own expectations, providing a positive outlook on the company’s future earnings. The company’s stock has been performing well in recent months, indicating strong investor confidence in the company’s outlook.
The rating upgrade is also an indicator of Burlington Stores’ commitment to long-term growth. The company has been able to implement strategies that have allowed it to create long-term value for shareholders. This includes a focus on margin expansion and operational efficiencies, as well as investments in new technology to drive growth. The company has shown a strong commitment to long-term growth and has implemented successful strategies which have translated into positive returns for investors.
Share Price
On Wednesday, Burlington Stores received a rating upgrade from S&P Global Market Intelligence, which raised its rating on the stock from hold to buy. This upgrade was attributed to its 5-year growth outlook, which has been positive despite the challenges of the pandemic. At market open, BURLINGTON STORES stock opened at $195.5 and closed at $196.6, up by 0.4% from its prior closing price of $195.9. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Burlington Stores. More…
| Total Revenues | Net Income | Net Margin |
| 9.35k | 297.39 | 3.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Burlington Stores. More…
| Operations | Investing | Financing |
| 857 | -415.31 | -260.99 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Burlington Stores. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.49k | 6.64k | 12.77 |
Key Ratios Snapshot
Some of the financial key ratios for Burlington Stores are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.0% | -14.8% | 5.1% |
| FCF Margin | ROE | ROA |
| 4.5% | 36.4% | 4.0% |
Analysis
GoodWhale conducted an analysis of BURLINGTON STORES‘ wellbeing and the results were encouraging. According to our Star Chart, BURLINGTON STORES scored a high health score of 7/10, indicating strong cashflows and debt management capabilities that allow them to pay off debt and fund future operations. We classified BURLINGTON STORES as a ‘gorilla’, a type of company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. The strong assets, growth, and profitability of BURLINGTON STORES make it an attractive investment opportunity for investors looking for long-term growth. However, the company is weak in dividends, so investors seeking income from their investments may choose to look elsewhere. More…
Peers
The company offers products and services that are in competition with Ross Stores Inc, Chiyoda Co Ltd, Mr Price Group Ltd, and other companies.
– Ross Stores Inc ($NASDAQ:ROST)
Ross Stores Inc is an American chain of off-price department stores headquartered in Dublin, California, with over 1,400 locations in 37 states. The company’s revenues total more than $15 billion as of 2019, making it the second-largest off-price retailer in the United States behind TJX Companies. Ross Stores typically sells brand name clothing, accessories, footwear, and home décor at prices that are 20% to 60% below department and specialty store regular prices.
– Chiyoda Co Ltd ($TSE:8185)
Chiyoda is a Japanese company that provides engineering and construction services. The company has a market cap of 25.87B as of 2022 and a Return on Equity of -2.63%. Chiyoda has been in business for over 70 years and has completed projects in over 80 countries. The company has a strong focus on the oil and gas industry, but also works in the power, chemicals, and other industries.
– Mr Price Group Ltd ($BER:M5M1)
Mr Price Group Ltd is a South African retail chain that was founded in 1985. The company has a market cap of 2.39B as of 2022 and a ROE of 27.7%. Mr Price Group Ltd operates over 1,000 stores across South Africa, Zimbabwe, Mozambique, Lesotho, Botswana, Namibia, and Swaziland. The company offers a wide range of products including clothing, homeware, and cosmetics.
Summary
Investment analysis of Burlington Stores has been positive, with a 5-year growth outlook deemed achievable. This has led to an upgrade in rating from analysts. Factors contributing to the positive outlook include expanding e-commerce presence, successful acquisition of GSI Commerce, and a shift towards the off-price retail model. Burlington is also focusing on strengthening its existing brands, as well as offering compelling private brands and exclusive lines.
The company is also expanding its omnichannel capabilities, increasing its store base, and strengthening its digital capabilities. These strategies should help drive long-term growth in the company and result in a higher stock price.
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