Burlington Stores BURL
Burlington Stores is a US retailer of clothing and home goods with an extreme value (off-price) model, buying excess brand inventory at reduced prices and selling it in physical stores and online. Burlington Stores shows solid growth (revenue +11%, earnings +95.9%) and an exceptional ROE of 41.41%, but its high leverage (ND/EBITDA 3.82) and low cash conversion (7.89%) are weaknesses. Valuation (P/E 22.88) is not cheap, and the high-rate environment adds pressure.
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.
Burlington Stores is a US retailer of clothing and home goods with an extreme value (off-price) model, buying excess brand inventory at reduced prices and selling it in physical stores and online. Burlington Stores shows solid growth (revenue +11%, earnings +95.9%) and an exceptional ROE of 41.41%, but its high leverage (ND/EBITDA 3.82) and low cash conversion (7.89%) are weaknesses. Valuation (P/E 22.88) is not cheap, and the high-rate environment adds pressure.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.6 |
| Quality / Moat | 5.8 |
| Valuation | 5.3 |
| Growth | 7.9 |
| Dividend | 1.5 |
| Momentum | 3.5 |
| Risk & Context | 3.8 |
OVERALL SCORE: 4.9/10
Context and risks
US discretionary consumer spending is pressured by the rise in 10-year Treasury yields (5.17%), which makes consumer credit more expensive and may curb spending on discretionary categories like apparel. However, Burlington's off-price model is defensive within the sector, gaining share in weak consumer environments.
News considered in the analysis
- Burlington Stores (BURL) Looks 30% Below Fair Value, Is The Premium P/E Still Justified? — Análisis de valoración que sugiere infravaloración, pero es opinión de analista sin información nueva material.
- This Company’s Software Manages Supply Chains for Retailers. Its Stock Can Surge 30%. — Titular sobre otra empresa (software de cadena de suministro), no sobre Burlington Stores.
- 3 of Wall Street’s Favorite Stocks with Competitive Advantages — Listículo genérico sin información específica nueva sobre BURL.
- Burlington's Beauty & Accessories Categories Lead Sales Trends — Señal positiva de demanda en categorías clave, consistente con el crecimiento de ingresos del 11%.
- TJX Companies' Digital Reach: Can Engagement Lift Store Traffic? — Noticia sobre un competidor (TJX), sin impacto directo en BURL.
Verdict: Hold. Growth is strong and the off-price model is defensive, but high debt and demanding valuation limit near-term upside.
Main risk: High leverage (Net Debt/EBITDA of 3.82) combined with rising 10-year Treasury yields (5.17%) could compress margins and limit financial flexibility if consumer spending weakens.
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