Company Overview
Burlington Stores, Inc. operates as a retailer of branded merchandise across the United States and Puerto Rico, offering a diverse assortment that includes women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, home furnishings, toys, gifts, coats, and various other items. The company functions within the Consumer Cyclical sector and specifically within the Apparel Retail industry, positioning itself as a destination for consumers seeking value-oriented fashion and household goods. With a market capitalization of $19.63B and annual revenue of $11.55B, the firm represents a significant entity in the retail landscape, although specific employee count data is not available in the provided financial records. The substantial market cap and multi-billion dollar revenue figures indicate that Burlington Stores, Inc. maintains a large-scale operational footprint and holds a considerable position within the competitive apparel retail market, distinguishing it from smaller regional retailers.
Financial Health
The company reported a Total Revenue of $11.55B over the trailing twelve months, generating a Net Income of $610.15M and an EBITDA of $1.27B. The significant gap between the $11.55B in revenue and the $610.15M in net income reveals a cost structure where operating expenses, including cost of goods sold and overhead, consume approximately 94.7% of total sales before accounting for interest and taxes. Free Cash Flow stands at $109.46M, which indicates that while the company generates positive cash flow, the amount available for debt repayment, capital expenditures, or shareholder returns is modest relative to its massive revenue base. The Gross Margin is reported at 43.8%, suggesting the company retains a healthy portion of sales revenue after direct costs, while the Operating Margin of 11.3% reflects the efficiency of core business operations before financing costs. The Profit Margin of 5.3% further illustrates the bottom-line profitability percentage available to shareholders after all operating and financial expenses are deducted. Regarding liquidity and leverage, the company holds $1.23B in cash against total debt of $6.01B, resulting in a Debt to Equity ratio of 332.28, which characterizes a highly leveraged balance sheet where debt obligations significantly exceed equity capitalization. The Current Ratio is 1.23, indicating that the company possesses 1.23 dollars in current assets for every dollar of current liabilities, suggesting a comfortable but not overly conservative short-term liquidity position. Return on Equity is an impressive 38.4%, demonstrating high effectiveness in generating profits from shareholder investments, whereas Return on Assets is 5.7%, showing the overall efficiency of asset utilization relative to the total asset base.
Valuation Assessment
The valuation metrics present a distinct divergence between current profitability and future expectations, with the Trailing Twelve Months (TTM) P/E Ratio at 32.77 and the Forward P/E at 23.12. The difference between these two ratios implies that the market expects earnings growth that will bring the valuation multiple down from current levels to a forward multiple that is significantly lower than the historical trailing multiple. The Price to Book ratio is 11.07, indicating that the market values the company at more than eleven times its book value, suggesting a substantial premium assigned to the company's intangible assets, brand strength, or growth potential. Alternative valuation metrics such as the Price to Sales ratio of 1.70 and an EV/EBITDA of 19.44 provide different perspectives on value; the P/S ratio suggests the company commands a premium over its sales base compared to many mature retailers, while the high EV/EBITDA reflects the heavy debt load and the capital required to service that debt. Price metrics show a 52-Week High of $332.20 and a 52-Week Low of $212.92; based on the forward P/E of 23.12 and the implied market sentiment, the current price context sits well below the 52-week high, reflecting the volatility often seen in consumer discretionary stocks during economic shifts. The Beta is 1.70, which means the stock is expected to be 70% more volatile than the broader market, indicating that price movements in Burlington Stores, Inc. are amplified relative to general market fluctuations.
Growth & Income
Revenue Growth over the last year is 11.3%, while Earnings Growth is 20.3%, indicating that earnings are expanding at a rate significantly faster than revenue. This divergence implies that the company is improving its operational efficiency or benefiting from margin expansion that outpaces the growth in top-line sales. As a non-dividend payer, the company reports a Dividend Yield of N/A and a Payout Ratio of 0.0%, meaning that instead of distributing cash to shareholders, the firm retains its earnings to fund operations, reduce debt, or pursue strategic growth initiatives. The overall growth and income profile for Burlington Stores, Inc. is characterized by strong earnings acceleration and a zero-dividend policy, reflecting a strategy focused on capital allocation for internal growth rather than current income distribution to investors.