Burlington Stores, Inc. (NYSE:BURL): Should The Future Outlook Worry You?
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Since Burlington Stores, Inc. (NYSE:BURL) released its earnings in November 2018, analyst consensus outlook seem pessimistic, as a -2.3% fall in profits is expected in the upcoming year against the past 5-year average growth rate of 48%. Presently, with latest-twelve-month earnings at US$385m, we should see this fall to US$376m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Burlington Stores
Can we expect Burlington Stores to keep growing?
The 16 analysts covering BURL view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BURL’s earnings growth over these next few years.
From the current net income level of US$385m and the final forecast of US$489m by 2022, the annual rate of growth for BURL’s earnings is 12%. EPS reaches $9.46 in the final year of forecast compared to the current $5.64 EPS today. Margins are currently sitting at 6.3%, approximately the same as previous years. With analysts forecasting revenue growth of 0.25326 and BURL’s net income growth expected to roughly track that, this company may add value for shareholders over time.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Burlington Stores, I’ve put together three essential factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Burlington Stores worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Burlington Stores is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Burlington Stores? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
