Breaking Down Burlington Stores, Inc. (BURL) Financial Health: Key Insights for Investors

Breaking Down Burlington Stores, Inc. (BURL) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Apparel - Retail | NYSE

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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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