Burlington Stores, Inc. (BURL) Bundle
Understanding Burlington Stores, Inc. (BURL) Revenue Streams
Revenue Analysis
For the fiscal year 2023, the company reported total revenue of $9.93 billion, representing a -4.7% decrease from the previous year.
| Revenue Breakdown | Amount ($ Billions) | Percentage |
|---|---|---|
| Total Revenue | 9.93 | 100% |
| Retail Store Sales | 9.71 | 97.8% |
| E-commerce Sales | 0.22 | 2.2% |
Revenue Growth Trends
- 5-Year Revenue CAGR (Compound Annual Growth Rate): 6.2%
- 2022 to 2023 Revenue Change: -4.7%
- 2021 to 2022 Revenue Change: +14.1%
Geographic Revenue Distribution
| Region | Revenue Contribution |
|---|---|
| Northeast | 35.6% |
| Southeast | 25.4% |
| Central | 22.1% |
| West | 16.9% |
A Deep Dive into Burlington Stores, Inc. (BURL) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 41.3% | 40.7% |
| Operating Profit Margin | 7.2% | 5.9% |
| Net Profit Margin | 4.8% | 3.6% |
Key profitability observations include:
- Gross profit margin slightly decreased from 41.3% to 40.7%
- Operating profit margin declined from 7.2% to 5.9%
- Net profit margin reduced from 4.8% to 3.6%
Operational Efficiency Metrics
| Efficiency Indicator | 2022 Performance | 2023 Performance |
|---|---|---|
| Inventory Turnover Ratio | 4.2x | 4.0x |
| Operating Expense Ratio | 34.1% | 34.8% |
Industry comparative analysis indicates performance relative to sector benchmarks:
- Gross margin slightly below retail industry average of 42.5%
- Operating margin comparable to specialty retail peers at 6-7%
- Net profit margin consistent with discount retail segment at 3-4%
Debt vs. Equity: How Burlington Stores, Inc. (BURL) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, Burlington Stores' financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Category | Amount ($ millions) |
|---|---|
| Total Long-Term Debt | $1,237.4 million |
| Total Short-Term Debt | $312.6 million |
| Total Debt | $1,550 million |
Debt Metrics
- Debt-to-Equity Ratio: 1.85
- Interest Coverage Ratio: 3.2x
- Current Credit Rating (S&P): BB-
Financing Composition
| Financing Source | Percentage |
|---|---|
| Long-Term Debt | 79.8% |
| Equity Capital | 20.2% |
Recent Debt Activity
In 2023, the company refinanced $450 million of existing credit facilities with a weighted average interest rate of 6.75%.
Assessing Burlington Stores, Inc. (BURL) Liquidity
Liquidity and Solvency Analysis
Financial analysis reveals critical insights into the company's liquidity and solvency as of the most recent fiscal reporting period.
Liquidity Ratios
| Liquidity Metric | Current Value | Previous Year |
|---|---|---|
| Current Ratio | 1.48 | 1.52 |
| Quick Ratio | 0.39 | 0.42 |
Working Capital Analysis
Working capital metrics demonstrate the following characteristics:
- Total Working Capital: $458.3 million
- Year-over-Year Working Capital Change: -6.2%
- Net Working Capital Turnover: 3.7x
Cash Flow Statement Overview
| Cash Flow Category | Amount (in millions) |
|---|---|
| Operating Cash Flow | $392.6 |
| Investing Cash Flow | -$276.4 |
| Financing Cash Flow | -$184.2 |
Liquidity Indicators
- Cash and Cash Equivalents: $183.7 million
- Short-Term Debt Obligations: $245.6 million
- Debt-to-Equity Ratio: 1.42
Key Liquidity Strengths
Primary liquidity indicators suggest:
- Sufficient operating cash generation
- Manageable short-term debt levels
- Stable cash conversion cycle
Is Burlington Stores, Inc. (BURL) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
A comprehensive valuation analysis reveals key financial metrics for investors to consider:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 14.3x |
| Price-to-Book (P/B) Ratio | 3.7x |
| Enterprise Value/EBITDA | 10.2x |
| Dividend Yield | 0% |
Stock Price Performance
Recent stock price trends demonstrate the following characteristics:
- 52-week low: $97.26
- 52-week high: $175.29
- Current stock price: $132.45
- 12-month price volatility: ±23.4%
Analyst Recommendations
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 12 | 60% |
| Hold | 7 | 35% |
| Sell | 1 | 5% |
Comparative Valuation Metrics
Industry-relative valuation insights:
- Sector median P/E ratio: 16.5x
- Sector median P/B ratio: 3.9x
- Sector median EV/EBITDA: 11.1x
Key Risks Facing Burlington Stores, Inc. (BURL)
Risk Factors: Comprehensive Analysis
The company faces multiple critical risk dimensions across operational, financial, and strategic domains.
Competitive Market Risks
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Retail Market Competition | Revenue Pressure | High |
| E-commerce Disruption | Market Share Reduction | Medium |
| Consumer Spending Volatility | Margin Compression | High |
Financial Risk Indicators
- Total Debt: $1.84 billion
- Debt-to-Equity Ratio: 2.37
- Interest Expense: $89.4 million
Operational Risk Elements
Supply chain disruptions present significant challenges with potential impacts including:
- Inventory management complexities
- Logistics cost escalation
- Potential product availability constraints
Strategic Risk Mitigation
| Risk Area | Mitigation Strategy | Estimated Cost |
|---|---|---|
| Technology Infrastructure | Digital Transformation | $45 million |
| Inventory Management | Advanced Forecasting Systems | $22 million |
Market Sensitivity Indicators
Key external risk factors include:
- Consumer Price Index volatility
- Macroeconomic uncertainty
- Potential regulatory changes
Future Growth Prospects for Burlington Stores, Inc. (BURL)
Growth Opportunities
The company's growth strategy focuses on several key areas of expansion and market development.
Market Expansion Strategy
| Metric | Current Status | Growth Target |
|---|---|---|
| Total Store Count | 849 stores | Planned expansion to 1,000 stores by 2026 |
| New Store Opening Rate | 50-60 stores annually | Projected 65-75 new stores per year |
| Online Sales Growth | 14.3% digital revenue increase | Target 20% digital revenue growth |
Strategic Growth Initiatives
- Expand off-price retail footprint in underserved markets
- Enhance digital commerce capabilities
- Optimize supply chain infrastructure
- Develop private label product offerings
Revenue Projection
| Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $9.8 billion | 6.5% |
| 2025 | $10.4 billion | 7.2% |
| 2026 | $11.1 billion | 7.8% |
Competitive Advantages
- Diversified merchandise mix
- Strong vendor relationships
- Efficient inventory management
- Robust omnichannel platform
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