Last Updated: 14 Nov 2024
Executive Summary
Buckle Inc. (BKE) is a leading retailer of casual clothing, footwear, and accessories for young men and women in the United States. The company has a strong financial position with a market capitalization of $2.48 billion, positive EBITDA of $273.23 million, and a trailing PE ratio of 11.9. However, the company has recently experienced a decline in quarterly earnings growth (-0.152%) and revenue growth (-0.034%). The latest stock price is $48.8, which is below the analyst target price of $46.
Company Overview
Buckle Inc. was founded in 1970 and is headquartered in Kearney, Nebraska. The company operates over 400 stores in 42 states and employs approximately 10,000 people. Buckle's target market is young men and women between the ages of 17 and 24 who are looking for fashionable and affordable clothing.
Fundamental Analysis
Buckle Inc.'s financial performance has been mixed in recent years. The company has reported positive revenue growth in each of the past five years, but its net income has declined in the past two years. In fiscal 2023, the company reported revenue of $1.23 billion and net income of $138.7 million. The company's gross profit margin is 65.1%, and its operating margin is 17.1%.
Buckle Inc. has a strong balance sheet with $268.5 million in cash and equivalents and $168.6 million in total debt. The company's debt-to-equity ratio is 0.63, which is below the industry average.
Technical Analysis
The technical analysis of Buckle Inc.'s stock price shows that the stock is currently in a downtrend. The stock price has been below its 50-day and 200-day moving averages for the past several months. The relative strength index (RSI) is below 50, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for Buckle Inc. is mixed. The company is facing headwinds from the current economic environment, which is characterized by high inflation and rising interest rates. However, the company has a strong balance sheet and a loyal customer base. The stock price is currently trading below its analyst target price, which suggests that there is upside potential in the short term.
Long Term Outlook
The long-term outlook for Buckle Inc. is positive. The company is a leader in the retail apparel industry, and it has a strong brand and a loyal customer base. The company is also well-positioned to benefit from the growth of the e-commerce market.
Analyst Recommendations
The majority of analysts have a "hold" rating on Buckle Inc. stock. The average analyst target price is $46, which is below the current stock price.
