BUCKLE INC/THE (BKE) Stock Fundamental Analysis
NYSE:BKE - New York Stock Exchange, Inc. - US1184401065 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to BKE. BKE was compared to 121 industry peers in the Specialty Retail industry. BKE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BKE is cheap, but on the other hand it scores bad on growth. With these ratings, BKE could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
BKE had positive earnings in the past year.
BKE had a positive operating cash flow in the past year.
In the past 5 years BKE has always been profitable.
BKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.41%, BKE belongs to the top of the industry, outperforming 98.35% of the companies in the same industry.
BKE has a Return On Equity of 46.12%. This is amongst the best in the industry. BKE outperforms 92.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.21%, BKE belongs to the top of the industry, outperforming 92.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BKE is significantly above the industry average of 14.13%.
The 3 year average ROIC (32.58%) for BKE is well above the current ROIC(26.21%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.41% | ||
| ROE | 46.12% | ||
| ROIC | 26.21% |
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 (16.05%) is better than 97.52% of its industry peers.
In the last couple of years the Profit Margin of BKE has grown nicely.
With an excellent Operating Margin value of 19.82%, BKE belongs to the best of the industry, outperforming 96.69% of the companies in the same industry.
In the last couple of years the Operating Margin of BKE has grown nicely.
The Gross Margin of BKE (48.68%) is better than 76.86% of its industry peers.
BKE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.82% | ||
| PM (TTM) | 16.05% | ||
| GM | 48.68% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BKE is creating value.
Compared to 1 year ago, BKE has more shares outstanding
Compared to 5 years ago, BKE has more shares outstanding
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.
2.2 Solvency
BKE has an Altman-Z score of 5.01. This indicates that BKE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.01, BKE belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
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 | 5.01 |
ROIC/WACC2.86
WACC9.18%
2.3 Liquidity
BKE has a Current Ratio of 2.05. This indicates that BKE is financially healthy and has no problem in meeting its short term obligations.
BKE has a Current ratio of 2.05. This is amongst the best in the industry. BKE outperforms 82.64% of its industry peers.
A Quick Ratio of 1.49 indicates that BKE should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.49, BKE belongs to the best of the industry, outperforming 84.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
BKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.02%.
The Earnings Per Share has been growing by 12.64% on average over the past years. This is quite good.
The Revenue has decreased by -3.44% in the past year.
BKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.23% yearly.
EPS 1Y (TTM)-12.02%
EPS 3Y-9.01%
EPS 5Y12.64%
EPS Q2Q%-3.77%
Revenue 1Y (TTM)-3.44%
Revenue growth 3Y-2.02%
Revenue growth 5Y6.23%
Sales Q2Q%-0.83%
3.2 Future
Based on estimates for the next years, BKE will show a decrease in Earnings Per Share. The EPS will decrease by -3.99% on average per year.
BKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.62% yearly.
EPS Next Y-11.63%
EPS Next 2Y-10.9%
EPS Next 3Y-3.99%
EPS Next 5YN/A
Revenue Next Year-0.49%
Revenue Next 2Y-0.99%
Revenue Next 3Y0.62%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.92, the valuation of BKE can be described as reasonable.
BKE's Price/Earnings ratio is rather cheap when compared to the industry. BKE is cheaper than 85.12% of the companies in the same industry.
BKE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 10.09, the valuation of BKE can be described as reasonable.
BKE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BKE is cheaper than 76.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BKE to the average of the S&P500 Index (21.32), we can say BKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
76.03% 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 82.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.86 | ||
| EV/EBITDA | 5.51 |
4.3 Compensation for Growth
The excellent profitability rating of BKE may justify a higher PE ratio.
A cheap valuation may be justified as BKE's earnings are expected to decrease with -3.99% in the coming years.
PEG (NY)N/A
PEG (5Y)0.71
EPS Next 2Y-10.9%
EPS Next 3Y-3.99%
5. Dividend
5.1 Amount
BKE has a Yearly Dividend Yield of 4.05%, which is a nice return.
The stock price of BKE dropped by -28.51% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
BKE's Dividend Yield is rather good when compared to the industry average which is at 5.62. BKE pays more dividend than 88.43% of the companies in the same industry.
BKE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
5.2 History
On average, the dividend of BKE grows each year by 11.22%, which is quite nice.
BKE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BKE decreased recently.
Dividend Growth(5Y)11.22%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
101.31% of the earnings are spent on dividend by BKE. This is not a sustainable payout ratio.
BKE's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP101.31%
EPS Next 2Y-10.9%
EPS Next 3Y-3.99%
34.61
+0.63 (+1.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners61.12%
Inst Owner Change-0.09%
Ins Owners8.14%
Ins Owner Change16.72%
Market Cap1.77B
Analysts46.67
Price Target41.82 (20.83%)
Short Float %9.56%
Short Ratio5.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend3.91
Dividend Growth(5Y)11.22%
DP101.31%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.64%
Min EPS beat(2)-2.1%
Max EPS beat(2)9.38%
EPS beat(4)1
Avg EPS beat(4)-0.82%
Min EPS beat(4)-7.68%
Max EPS beat(4)9.38%
EPS beat(8)4
Avg EPS beat(8)2.5%
EPS beat(12)8
Avg EPS beat(12)5.87%
EPS beat(16)12
Avg EPS beat(16)19.32%
Revenue beat(2)1
Avg Revenue beat(2)0.03%
Min Revenue beat(2)-0.42%
Max Revenue beat(2)0.47%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)1.03%
Revenue beat(8)2
Avg Revenue beat(8)-1.43%
Revenue beat(12)5
Avg Revenue beat(12)-0.33%
Revenue beat(16)9
Avg Revenue beat(16)3.16%
PT rev (1m)-21.15%
PT rev (3m)-12.77%
EPS NQ rev (1m)-5.8%
EPS NQ rev (3m)-12.16%
EPS NY rev (1m)-10.89%
EPS NY rev (3m)-10.3%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-2.97%
Revenue NY rev (1m)-2.33%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 10.09 | ||
| P/S | 1.45 | ||
| P/FCF | 8.86 | ||
| P/OCF | 7.32 | ||
| P/B | 4.18 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 5.51 |
EPS(TTM)3.88
EY11.21%
EPS(NY)3.43
Fwd EY9.91%
FCF(TTM)3.9
FCFY11.28%
OCF(TTM)4.73
OCFY13.67%
SpS23.8
BVpS8.28
TBVpS8.28
PEG (NY)N/A
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.41% | ||
| ROE | 46.12% | ||
| ROCE | 34.52% | ||
| ROIC | 26.21% | ||
| ROICexc | 44.86% | ||
| ROICexgc | 44.86% | ||
| OM | 19.82% | ||
| PM (TTM) | 16.05% | ||
| GM | 48.68% | ||
| FCFM | 16.4% |
ROA(3y)25.51%
ROA(5y)24.91%
ROE(3y)55.67%
ROE(5y)56.25%
ROIC(3y)32.58%
ROIC(5y)33.11%
ROICexc(3y)57.64%
ROICexc(5y)61.82%
ROICexgc(3y)57.64%
ROICexgc(5y)61.82%
ROCE(3y)42.91%
ROCE(5y)43.6%
ROICexcg growth 3Y-22.38%
ROICexcg growth 5Y15.72%
ROICexc growth 3Y-22.38%
ROICexc growth 5Y15.72%
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%
F-Score5
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 183.86% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.55% | ||
| Profit Quality | 102.19% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 5.01 |
F-Score5
WACC9.18%
ROIC/WACC2.86
Cap/Depr(3y)174.55%
Cap/Depr(5y)132.53%
Cap/Sales(3y)2.9%
Cap/Sales(5y)2.2%
Profit Quality(3y)94.76%
Profit Quality(5y)113.61%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.02%
EPS 3Y-9.01%
EPS 5Y12.64%
EPS Q2Q%-3.77%
EPS Next Y-11.63%
EPS Next 2Y-10.9%
EPS Next 3Y-3.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.44%
Revenue growth 3Y-2.02%
Revenue growth 5Y6.23%
Sales Q2Q%-0.83%
Revenue Next Year-0.49%
Revenue Next 2Y-0.99%
Revenue Next 3Y0.62%
Revenue Next 5YN/A
EBIT growth 1Y-10.96%
EBIT growth 3Y-10.4%
EBIT growth 5Y12.91%
EBIT Next Year11.99%
EBIT Next 3Y1.81%
EBIT Next 5YN/A
FCF growth 1Y-8.11%
FCF growth 3Y-11.96%
FCF growth 5Y10.11%
OCF growth 1Y-4.96%
OCF growth 3Y-8.1%
OCF growth 5Y13.11%