Burlington Stock Story


USD 162.17  0.39  0.24%   

Burlington Stores is scheduled to announce its earnings today. Burlington Stores Accounts Payable Turnover is relatively stable at the moment as compared to the past year. The company's current value of Accounts Payable Turnover is estimated at 9.44. Operating Margin is expected to hike to 4.69 this year, although the value of PPandE Turnover will most likely fall to 4.89. As many millenniums are trying to avoid consumer cyclical space, it makes sense to summarize Burlington Stores a little further and try to understand its current market patterns. We will summarize if it could be a much better year for Burlington Stores shareholders.
Published over two months ago
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Will Burlington Stores (NYSE:BURL) be in financial trouble before June?

The company currently holds 4.46 B in liabilities with Debt to Equity (D/E) ratio of 5.87, indicating Burlington Stores may have difficulties to generate enough cash to satisfy its financial obligations. Burlington Stores has a current ratio of 1.28, suggesting that it is in a questionable position to pay out its financial obligations when due. Debt can assist Burlington Stores until it has trouble settling it off, either with new capital or with free cash flow. So, Burlington Stores' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Burlington Stores sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Burlington to invest in growth at high rates of return. When we think about Burlington Stores' use of debt, we should always consider it together with cash and equity.
Burlington Stores financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Burlington Stores, including all of Burlington Stores's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Burlington Stores assets, the company is considered highly leveraged. Understanding the composition and structure of overall Burlington Stores debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Burlington Total Liabilities

Burlington Stores liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Burlington Stores has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Burlington Stores balance sheet include debt obligations and money owed to different Burlington Stores vendors, workers, and loan providers. Below is the chart of Burlington short long-term liabilities accounts currently reported on its balance sheet.
You can use Burlington Stores financial leverage analysis tool to get a better grip on understanding its financial position

How important is Burlington Stores's Liquidity

Burlington Stores financial leverage refers to using borrowed capital as a funding source to finance Burlington Stores ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Burlington Stores financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Burlington Stores's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Burlington Stores, but it might be worth checking our own buy vs. sell analysis

A Deeper Perspective

The big decline in price over the last few months for Burlington Stores could raise concerns from stakeholders as the firm is trading at a share price of 169.87 on 2,047,713 in volume. The company management teams failed to add value to investors and position the firm supply of money to exploit market volatility in April. However, diversifying your holdings with Burlington Stores or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.18. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Burlington Stores partners.

Asset Breakdown

3.3 B
Assets Non Current
1.9 B
Current Assets
Total Assets5.11 Billion
Current Assets1.86 Billion
Assets Non Current3.25 Billion
Goodwill440.28 Million
Tax Assets21.68 Million

Our take on today Burlington Stores hike

New mean deviation is at 3.14. Burlington Stores exhibits very low volatility with skewness of -1.0 and kurtosis of 1.89. However, we advise investors to further study Burlington Stores technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Burlington Stores' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Burlington Stores' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Burlington Stores Implied Volatility

Burlington Stores' implied volatility exposes the market's sentiment of Burlington Stores stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Burlington Stores' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Burlington Stores stock will not fluctuate a lot when Burlington Stores' options are near their expiration.

Our Final Take On Burlington Stores

While some companies within the apparel retail industry are still a little expensive, even after the recent corrections, Burlington Stores may offer a potential longer-term growth to stakeholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor drop any shares of Burlington Stores at this time. The Burlington Stores risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Burlington Stores.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Burlington Stores. Please refer to our Terms of Use for any information regarding our disclosure principles.

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