The Buckle, Inc. – Value Analysis (NYSE:BKE) : August 11, 2017

Capitalcube gives The Buckle, Inc. a score of 63.

Our analysis is based on comparing The Buckle, Inc. with the following peers – Gap, Inc., Urban Outfitters, Inc., American Eagle Outfitters, Inc., Abercrombie & Fitch Co. Class A, Aeropostale, Inc., Nordstrom, Inc., Zumiez Inc. and Tilly’s, Inc. Class A (GPS-US, URBN-US, AEO-US, ANF-US, AROPQ-US, JWN-US, ZUMZ-US and TLYS-US).

Investment Outlook

The Buckle, Inc. has a fundamental score of 63 and has a relative valuation of UNDERVALUED.

Fundamental Score

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Company Overview

  • Compared to peers, relative underperformance last month is down from a median performance last year.
  • It’s current Price/Book of 1.75 is about median in its peer group.
  • We classify BKE-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
  • BKE-US has relatively high profit margins while operating with median asset turns.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • BKE-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
  • BKE-US‘s revenues have grown more slowly than the peer median over the last few years, which combined with the stock price’s relatively low P/E ratio suggests substandard growth expectations relative to peers.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • BKE-US currently does not have any debt.

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Leverage & Liquidity

BKE-US currently does not have any debt.

  • We consider the company to have a Quick & Able profile as it currently does not have any debt. In comparison, the median level of debt as percent of enterprise value for its peer group is currently 0.36%.
  • Of the 8 chosen peers for the company, only 5 of the stocks have an outstanding debt balance. Companies with no debt include URBN-US, AEO-US and ZUMZ-US.

Access the detailed analysis for The Buckle, Inc.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Gap, Inc. 13.01 1.79 17.01 108.07
Urban Outfitters, Inc. 0 2.62 0 999
American Eagle Outfitters, Inc. 0 1.82 0 999
Abercrombie & Fitch Co. Class A 43.53 2.38 -0.94 57.51
Aeropostale, Inc. 144.15 0.31 -3.48 -79.43
Nordstrom, Inc. 31.83 1.01 7.59 41.43
Zumiez Inc. 0 2.36 No interest exp 999
Tilly’s, Inc. Class A 0.36 2.7 0 5459.57
Buckle, Inc. 0 4.11 No interest exp 999
Peer Median 0.36 2.36 12.3 999
Best In Class 0.36 4.11 No interest exp 5459.57

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Company Profile

The Buckle, Inc. engages in the manufacturing and trading of apparel, footwear, and accessories. It manages and operates retail stores. The company markets a wide selection of brand names and private label casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories and footwear. The Buckle was founded by David Hirschfeld in 1948 and is headquartered in Kearney, NE.

Disclaimer

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