Burlington Stores, Inc. (BURL) Stock Analysis
Burlington Stores, Inc. (BURL) Stock Analysis
Analysis from 10-Q filed 2025-11-25. Data as of Q1 2026.
Overall Grade: F (Concerning)
Burlington Stores, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 18.2% | Solid returns |
| FCF Margin | 1.5% | Cash flow pressure |
| Debt/Equity | 1.1x | Moderate leverage |
Investment Thesis: Strong return on invested capital of 18.2% suggests durable competitive advantages and efficient capital allocation.
Explore Burlington Stores, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Burlington Stores, Inc. earns 18.2% ROIC, Top 25% in Consumer Discretionary
Burlington Stores, Inc.'s trailing-twelve-month ROIC of 18.2% ranks Top 25% in Consumer Discretionary companies (sector median: 8.8%), driven by NOPAT margin of 5.3% combined with asset turnover of 1.3x. Source: 10-Q filed 2025-11-25. Gross margin of 43.9% with operating margin at 7.1% reflects strong pricing power.
| Metric | BURL | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.2% | Good | Above sector median of 8.8% |
| Return on Equity (ROE) | 41.3% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 43.9% | Good | Strong pricing power |
| Operating Margin | 7.1% | Adequate | Moderate operational efficiency |
Cash Flow: Burlington Stores, Inc. generates $171.6M FCF at 1.5% margin, positive NaN/8 quarters
Burlington Stores, Inc. generated $171.6M in free cash flow (TTM), a 1.5% FCF margin, a margin that ranks Bottom 50% in Consumer Discretionary. Operating cash flow exceeds net income by 2.0x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-25.
| Metric | BURL | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 1.5% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $171.6M | Good | Positive cash generation |
| OCF/Net Income | 2.0x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Burlington Stores, Inc. at 1.1x leverage
Burlington Stores, Inc.'s debt-to-equity ratio of 1.1x reflects elevated leverage. Total debt of $2.1B offset by $1.2B in cash. Source: 10-Q filed 2025-11-25.
| Metric | BURL | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.1x | Adequate | Moderate leverage |
| Net Cash Position | $-829.8M | Adequate | Net debt position |
Valuation: Burlington Stores, Inc. trades at 30.5x earnings
Burlington Stores, Inc. trades at a P/E of 30.5x. Free cash flow yield of 0.9% reflects market expectations for growth.
| Metric | BURL | Rating | Context |
|---|---|---|---|
| P/E Ratio | 30.5x | Adequate | Premium valuation |
| EV/Sales | 1.7x | Excellent | Attractive revenue multiple |
| FCF Yield | 0.9% | Warning | Lower cash yield |
Capital Allocation: Burlington Stores, Inc. returns 1.5% shareholder yield
Burlington Stores, Inc.'s total shareholder yield is 1.5% (dividends + buybacks 1.5%). Source: 10-Q filed 2025-11-25.
| Metric | BURL | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.5% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 1.5% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $278.4M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.2% | Top 25% | 2.1x above |
| Free Cash Flow Margin | 1.5% | Bottom 50% | 0.5x below |
| Gross Margin | 43.9% | Top 50% | 1.1x above |
| Operating Margin | 7.1% | Top 50% | 1.5x above |
| Return on Equity (ROE) | 41.3% | Top 25% | 3.9x above |
| P/E Ratio | 30.5x | N/A | - |
Financial Scorecard
| Metric | BURL | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.2% | Good | Top 25% of sector (median: 8.8%) |
| Free Cash Flow Margin | 1.5% | Warning | Bottom 50% of sector (median: 2.7%) |
| Gross Margin | 43.9% | Good | Top 50% of sector (median: 39.5%) |
| Debt to Equity Ratio | 114.1% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 30.5x | Adequate | Growth premium |
| Free Cash Flow Yield | 0.9% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is Burlington Stores, Inc.'s Return on Invested Capital (ROIC)?
Burlington Stores, Inc. (BURL) has a trailing twelve-month Return on Invested Capital (ROIC) of 18.2%. This compares above the sector median of 8.8%. An ROIC between 12-20% indicates solid capital allocation and sustainable competitive position.
Q: What is Burlington Stores, Inc.'s Free Cash Flow Margin?
Burlington Stores, Inc. (BURL) has a free cash flow margin of 1.5%, generating $171.6 million in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is Burlington Stores, Inc. stock overvalued or undervalued?
Burlington Stores, Inc. (BURL) trades at a P/E ratio of 30.5x, which is above the sector median of N/A. The EV/Sales multiple is 1.7x. Free cash flow yield is 0.9%, reflecting growth expectations priced into the stock.
Q: How much debt does Burlington Stores, Inc. have?
Burlington Stores, Inc. (BURL) has a debt-to-equity ratio of 1.1x with total debt of $2.1 billion. Net debt position is $829.8 million.
Q: What is Burlington Stores, Inc.'s revenue and earnings growth?
Burlington Stores, Inc. (BURL) grew revenue by 8.8% year-over-year. Earnings per share increased by 21.9% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is Burlington Stores, Inc. buying back stock?
Burlington Stores, Inc. (BURL) repurchased $278.4 million of stock over the trailing twelve months. This represents a buyback yield of 1.5%.
Q: How does Burlington Stores, Inc. compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, Burlington Stores, Inc. (BURL) shows: ROIC of 18.2% is above the sector median of 8.8% (Top 22%). FCF margin of 1.5% trails the sector median of 2.7% (Bottom 38% of sector). Gross margin at 43.9% is 4.4 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with Burlington Stores, Inc.?
Investors in Burlington Stores, Inc. (BURL) should monitor these potential warning signs: 1) FCF margin is thin at 1.5%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-25. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.