Burberry BRBY.L
Burberry is a British luxury fashion house that designs, manufactures, and sells clothing, accessories, and fragrances through a global network of own stores and outlets. Burberry presents a mixed profile: high gross margin (67.89%) and good cash conversion (147.33%), but a very low ROE (2.14%) and almost flat revenue growth (0.90%). Leverage (ND/EBITDA 3.13) and a demanding valuation (P/E 170) are the main challenges, although the forward P/E (18.2) suggests improvement expectations.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Burberry is a British luxury fashion house that designs, manufactures, and sells clothing, accessories, and fragrances through a global network of own stores and outlets. Burberry presents a mixed profile: high gross margin (67.89%) and good cash conversion (147.33%), but a very low ROE (2.14%) and almost flat revenue growth (0.90%). Leverage (ND/EBITDA 3.13) and a demanding valuation (P/E 170) are the main challenges, although the forward P/E (18.2) suggests improvement expectations.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.1 |
| Quality / Moat | 6.2 |
| Valuation | 5.8 |
| Growth | 4.5 |
| Dividend | 1.5 |
| Momentum | 3.3 |
| Risk & Context | 7.6 |
OVERALL SCORE: 5.4/10
Context and risks
Moderate governance/regulatory risk in the UK. No additional specific regulatory, geopolitical, or business model risks for Burberry are identified in this context.
News considered in the analysis
- Private: Burberry, Kering Cite ‘Resets’ to Capitalize on Luxury’s Rebound — La mención de un 'reset' por parte de Burberry y Kering sugiere una estrategia para reposicionarse ante una posible recuperación del lujo, lo que podría ser positivo si se ejecuta bien.
- London Fashion Week Revs Up With a Lineup of New Brands and Some Old Favorites — Ruido sectorial sin información específica sobre el desempeño o valoración de Burberry.
- European Indexes Slide as Higher Oil Weighs on Defense Stocks, Banks — Noticia de mercado general que no afecta directamente a Burberry, cuyo negocio no tiene exposición material al precio del crudo.
- 3 British Undervalued Stocks Trading Up To 48% Below Fair Value — Listículo genérico sin información nueva o específica sobre Burberry.
- European Stocks Close Higher in Friday Trading as Investors Parse Fed Chair Remarks — Movimiento general del mercado sin implicación directa para los fundamentales de Burberry.
Verdict: Hold. The company needs to demonstrate that its 'reset' strategy can reignite growth and improve return on equity before considering a more constructive stance.
Main risk: The main risk is Burberry's inability to reverse its sales stagnation and low profitability (ROE 2.14%), which would leave the current valuation (P/E 170) without fundamental support.
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