BOOT BARN HOLDINGS INC (NYSE:BOOT) - A GARP Candidate Worth Watching

BOOT BARN HOLDINGS INC (NYSE:BOOT) emerged from our Peter Lynch-inspired screen as a potential candidate for long-term investors seeking growth at a reasonable price. The company, which operates retail stores specializing in western and work-related footwear and apparel, meets several key criteria for sustainable growth and financial health.

Why BOOT Fits the GARP Strategy

• Strong Earnings Growth: Over the past five years, BOOT has delivered an impressive average annual EPS growth of 28.69%, well above the minimum 15% threshold in our screen. This indicates consistent expansion in profitability.
• Reasonable Valuation: While the PEG ratio (1.84) is slightly above the ideal threshold of 1, the company’s high profitability and financial health may justify the premium.
• Healthy Balance Sheet: With a minimal debt-to-equity ratio of 0.01, BOOT maintains a conservative capital structure, reducing financial risk. The current ratio of 2.20 also reflects strong liquidity.
• High Profitability: The return on equity (ROE) stands at 15.86%, exceeding the 15% benchmark, signaling efficient use of shareholder capital.

Fundamental Highlights

Our fundamental analysis assigns BOOT a rating of 6 out of 10, with strengths in profitability and financial health. Key takeaways:

• Profit Margins: BOOT’s operating margin (12.46%) and profit margin (9.37%) outperform most industry peers.
• Growth Outlook: Analysts project continued EPS growth at 13.54% annually, supported by an 11.13% expected revenue increase.
• Valuation: The stock trades at a P/E of 26.74, slightly above the S&P 500 average, but its growth trajectory and strong fundamentals may support the valuation.

For a deeper dive, review the full fundamental report.

Our Peter Lynch Strategy screener lists more stocks that fit this strategy and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.