The Buckle, Inc. Fundamental Analysis
The Buckle, Inc. (BKE) shows strong financial fundamentals with a PE ratio of 10.12, profit margin of 16.85%, and ROE of 47.36%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 6.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BKE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBKE demonstrates superior asset utilization.
Valuation Score
ExcellentBKE trades at attractive valuation levels.
Growth Score
ModerateBKE shows steady but slowing expansion.
Financial Health Score
ExcellentBKE maintains a strong and stable balance sheet.
Profitability Score
ExcellentBKE achieves industry-leading margins.
Key Financial Metrics
Is BKE Expensive or Cheap?
P/E Ratio
BKE trades at 10.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BKE's PEG of 0.83 indicates potential undervaluation.
Price to Book
The market values The Buckle, Inc. at 4.88 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.29 times EBITDA. This is generally considered low.
How Well Does BKE Make Money?
Net Profit Margin
For every $100 in sales, The Buckle, Inc. keeps $16.85 as profit after all expenses.
Operating Margin
Core operations generate 21.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $47.36 in profit for every $100 of shareholder equity.
ROA
The Buckle, Inc. generates $21.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Buckle, Inc. produces operating cash flow of $255.60M, showing steady but balanced cash generation.
Free Cash Flow
The Buckle, Inc. generates strong free cash flow of $209.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.07 in free cash annually.
FCF Yield
BKE converts 9.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.47
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.34
vs 25 benchmark
How BKE Stacks Against Its Sector Peers
| Metric | BKE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.12 | 23.90 | Better (Cheaper) |
| ROE | 47.36% | 1176.00% | Weak |
| Net Margin | 16.85% | 2549.00% | Weak |
| Debt/Equity | 0.90 | 0.73 | Weak (High Leverage) |
| Current Ratio | 2.04 | 2.83 | Strong Liquidity |
| ROA | 21.11% | -8407.00% (disorted) | Strong |
BKE outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Buckle, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.67%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
56.32%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
7.11%
Industry Style: Cyclical, Growth, Discretionary
Growing