BUCKLE INC/THE (BKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BKE - US1184401065 - Common Stock
48.97 USD
-0.2 (-0.41%)
48.97 USD
0 (0%)
BKE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. BKE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BKE is cheap, but on the other hand it scores bad on growth. These ratings would make BKE suitable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year BKE was profitable.
- In the past year BKE had a positive cash flow from operations.
- BKE had positive earnings in each of the past 5 years.
- In the past 5 years BKE always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 19.60%, BKE belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
- BKE's Return On Equity of 42.33% is amongst the best of the industry. BKE outperforms 91.80% of its industry peers.
- BKE's Return On Invested Capital of 23.81% is amongst the best of the industry. BKE outperforms 93.44% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BKE is significantly above the industry average of 12.24%.
- The 3 year average ROIC (32.58%) for BKE is well above the current ROIC(23.81%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.6% | ||
| ROE | 42.33% | ||
| ROIC | 23.81% |
ROA(3y)25.51%
ROA(5y)24.91%
ROE(3y)55.67%
ROE(5y)56.25%
ROIC(3y)32.58%
ROIC(5y)33.11%
1.3 Margins
- The Profit Margin of BKE (16.12%) is better than 98.36% of its industry peers.
- In the last couple of years the Profit Margin of BKE has grown nicely.
- BKE has a Operating Margin of 20.04%. This is amongst the best in the industry. BKE outperforms 97.54% of its industry peers.
- In the last couple of years the Operating Margin of BKE has grown nicely.
- BKE has a better Gross Margin (48.90%) than 76.23% of its industry peers.
- BKE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.04% | ||
| PM (TTM) | 16.12% | ||
| GM | 48.9% |
OM growth 3Y-8.55%
OM growth 5Y6.3%
PM growth 3Y-6.57%
PM growth 5Y6.72%
GM growth 3Y-1.18%
GM growth 5Y3.03%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BKE is creating value.
- The number of shares outstanding for BKE has been increased compared to 1 year ago.
- Compared to 5 years ago, BKE has more shares outstanding
- BKE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- BKE has an Altman-Z score of 5.40. This indicates that BKE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of BKE (5.40) is better than 89.34% of its industry peers.
- There is no outstanding debt for BKE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.4 |
ROIC/WACC2.46
WACC9.69%
2.3 Liquidity
- BKE has a Current Ratio of 2.15. This indicates that BKE is financially healthy and has no problem in meeting its short term obligations.
- BKE has a Current ratio of 2.15. This is amongst the best in the industry. BKE outperforms 81.97% of its industry peers.
- BKE has a Quick Ratio of 1.53. This is a normal value and indicates that BKE is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Quick ratio value of 1.53, BKE belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.55% over the past year.
- BKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.64% yearly.
- Looking at the last year, BKE shows a small growth in Revenue. The Revenue has grown by 4.67% in the last year.
- The Revenue has been growing slightly by 6.23% on average over the past years.
EPS 1Y (TTM)3.55%
EPS 3Y-9.01%
EPS 5Y12.64%
EPS Q2Q%9.09%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y-2.02%
Revenue growth 5Y6.23%
Sales Q2Q%9.27%
3.2 Future
- Based on estimates for the next years, BKE will show a small growth in Earnings Per Share. The EPS will grow by 5.80% on average per year.
- Based on estimates for the next years, BKE will show a small growth in Revenue. The Revenue will grow by 4.95% on average per year.
EPS Next Y5.95%
EPS Next 2Y2.99%
EPS Next 3Y5.8%
EPS Next 5YN/A
Revenue Next Year6.86%
Revenue Next 2Y4.79%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.00 indicates a correct valuation of BKE.
- 81.15% of the companies in the same industry are more expensive than BKE, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.82. BKE is valued rather cheaply when compared to this.
- BKE is valuated reasonably with a Price/Forward Earnings ratio of 11.90.
- BKE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BKE is cheaper than 78.69% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, BKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
- 69.67% of the companies in the same industry are more expensive than BKE, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, BKE is valued cheaper than 82.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.9 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of BKE may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)0.95
EPS Next 2Y2.99%
EPS Next 3Y5.8%
5. Dividend
5.1 Amount
- BKE has a Yearly Dividend Yield of 2.65%.
- Compared to an average industry Dividend Yield of 2.15, BKE pays a better dividend. On top of this BKE pays more dividend than 85.25% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BKE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
- The dividend of BKE is nicely growing with an annual growth rate of 11.22%!
- BKE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)11.22%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 98.37% of the earnings are spent on dividend by BKE. This is not a sustainable payout ratio.
- BKE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP98.37%
EPS Next 2Y2.99%
EPS Next 3Y5.8%
BUCKLE INC/THE / BKE FAQ
What is the ChartMill fundamental rating of BUCKLE INC/THE (BKE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to BKE.
What is the valuation status of BUCKLE INC/THE (BKE) stock?
ChartMill assigns a valuation rating of 7 / 10 to BUCKLE INC/THE (BKE). This can be considered as Undervalued.
Can you provide the profitability details for BUCKLE INC/THE?
BUCKLE INC/THE (BKE) has a profitability rating of 9 / 10.
Can you provide the financial health for BKE stock?
The financial health rating of BUCKLE INC/THE (BKE) is 9 / 10.
What is the expected EPS growth for BUCKLE INC/THE (BKE) stock?
The Earnings per Share (EPS) of BUCKLE INC/THE (BKE) is expected to grow by 5.95% in the next year.