Burlington Stores Stock Fair Value – BURLINGTON STORES Reports Record Earnings for Q2 FY2024
August 26, 2023
🌥️Earnings Overview
BURLINGTON STORES ($NYSE:BURL) reported total revenue of USD 2174.8 million and net income of USD 30.9 million for the second quarter of FY2024, ending on July 31, 2023. This marked a 9.4% increase in revenue and 158.1% rise in net income when compared to the same period last year.
Market Price
On Thursday, Burlington Stores announced record earnings for the second quarter of Fiscal Year 2024. Despite the positive news, the stock opened at $164.7 and closed at $154.8, a drop of 8.9% from its previous closing price of $170.0. The decline in share price was likely due to investor concerns over the company’s future prospects given the uncertain economic environment due to the ongoing pandemic. The strong financial performance was largely driven by Burlington’s decision to pivot to an online-first strategy in response to the pandemic, which has allowed the company to take advantage of increased consumer spending on e-commerce.
In addition, Burlington’s omni-channel approach has enabled it to continue to provide customers with an exceptional shopping experience despite the restrictions imposed by the pandemic. Despite the drop in share price, Burlington Stores remains well-positioned to capitalize on the economic recovery ahead. The company has been able to maintain its market share through its innovative approach and is now entering into new markets as it seeks to expand its presence. In conclusion, Thursday’s earnings report serves as a reminder of the resilience and adaptability that Burlington Stores has demonstrated in order to remain competitive in today’s market. 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 |
| 9.1k | 265.62 | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Burlington Stores. More…
| Operations | Investing | Financing |
| 779.07 | -414.4 | -305.26 |
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 |
| 6.92k | 6.09k | 12.35 |
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 |
| 16.2% | -14.8% | 4.8% |
| FCF Margin | ROE | ROA |
| 3.8% | 33.9% | 3.9% |
Analysis – Burlington Stores Stock Fair Value
At GoodWhale, we recently conducted an analysis of BURLINGTON STORES’s fundamentals. Our proprietary Valuation Line has calculated the intrinsic value of BURLINGTON STORES’s share to be around $252.7. On the other hand, BURLINGTON STORES’s stock is currently being traded at $154.8, which is lower than the estimated intrinsic value by 38.7%. This implies that BURLINGTON STORES is currently undervalued in the market. More…
Peers
The company offers products and services that are in competition with Ross Stores Inc, Chiyoda Co Ltd, Mr Price Group Ltd, and other companies.
– Ross Stores Inc ($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
Burlington Stores reported strong second quarter financials for the fiscal year 2024, with revenue rising 9.4% year-on-year to USD 2174.8 million and net income up 158.1% to USD 30.9 million. Despite these results, the stock price decreased on the day of the report. As such, investors should consider the company’s performance in context of the overall sector and its competitive environment. Analyze Burlington Stores’ balance sheet, cash flow, and other financial metrics to assess its long-term viability as an investment.
Consider potential risks, especially macroeconomic risks that may affect the company’s performance going forward. Lastly, compare Burlington Stores to its peers to assess the potential for above average returns.
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