By analyzing existing basic indicators between Burlington Stores and Continental, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Continental with a short position in Burlington Stores. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Burlington Stores has an asset utilization ratio of 342.95 percent. This denotes that the company is making $3.43 for each dollar of assets. An increasing asset utilization means that Burlington Stores is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Burlington or Urban is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
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. Financial leverage can amplify the potential profits to Burlington Stores' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Burlington Stores' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Burlington Stores's total debt and its cash.
Correlation Between Burlington and Urban Outfitters
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Burlington Stores together with similar or unrelated positions with a negative correlation. For example, you can also add Urban Outfitters to your portfolio. If Urban Outfitters is not perfectly correlated to Burlington Stores it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Burlington Stores, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Burlington Stores and Urban Outfitters in your portfolio? Please note if you are using this as a pair-trade strategy between Burlington Stores and Urban Outfitters, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between BURL and URBN for more information.
A Deeper Perspective
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Burlington Stores revenue. Based on the latest financial disclosure, Burlington Stores reported 8.82
B of revenue. This is 23.7% higher than that of the Consumer Cyclical sector and significantly higher than that of the
Apparel Retail industry. The revenue for all United States stocks is 6.52% higher than that of Burlington Stores. As for Continental we see revenue of 2.94
B, which is much higher than that of the Apparel Retail
| Burlington | 8.82 Billion |
| Sector | 0.0 |
| Continental | 2.94 Billion |
Burlington Stores has 92 percent likelihood to pull down below $154 in December
Burlington Stores jensen alpha is up to 0.01. Burlington Stores shows above-average downside volatility for the selected time horizon. We advise investors to inspect Burlington Stores further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Burlington Stores future alpha. 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 bullish 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.
Our Conclusion on Burlington Stores
When is the right time to buy or sell Burlington Stores? Buying stocks such as Burlington Stores isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
On the whole, as of the 22nd of November 2022, our analysis shows that Burlington Stores responds to the market. The company is
undervalued and projects
low odds of financial turmoil for the next 2 years. Our actual 90 days advice on the company is
Hold.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile 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 Gabriel Shpitalnik do not own shares of Burlington Stores. Please refer to our
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