Fundamental analysis: The Buckle, Inc. (BKE)

Awarener score: 8.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Modest) and growth (Average), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

Business has been growing at a low pace. It's been encouraging in relation to peer companies.
The Buckle, Inc. business trend isn't so stable. The higher the stability, the lower the risk. It looks somewhat worse than rivals.

Margins score: 7.8

BKE profit margins -on goods and services sold- are usually sufficient. They stand well ranked against rival companies.
Business profit on sales tends to be excellent. It's top tier when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually good. They remain impressive in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still top-notch against similar companies.
Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
Total net profit tends to be very good when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 7.3

The Buckle, Inc. profit -on goods and services sold- has been growing at a normal pace. It's been in good shape compared to competitors.
In recent years, earnings -on operations- have been growing at a good step, which has been slightly better than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares almost average when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be close to average when compared to similar stocks.
In past years, profits -before income taxes- grew at a good speed. It was slightly better than rivals.
In the previous years, growth trend on total net profit has been very good, and similar to peer companies.
Earnings per share have grown at a very good rhythm in past years. It's been rather normal in relation to industry peers.

Miscellaneous score: 4.0

BKE had to pay substantial income taxes in relation to profits made in the past years. It's been slightly better than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 10.0

The Buckle, Inc. usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
Profitability -in relation to owned resources- is usually paramount. It ranks great when measured against competitors.
In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.4

BKE usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands top tier when measured against rival firms.
The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is weak when measured against industry peers.
In the past twelve months it paid outstanding dividends, considering the current stock price. It came top-notch against competitors.
Has significantly increased dividend payments in the past years. Business prospects probably have improved. The company has behaved a slight improvement compared to similar firms.
The company usually uses a large portion of genuine funds generated to pay dividends. There could be some concerns on sustainability if business takes a dive. Sustainability looks mediocre against comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.6

The Buckle, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be in good shape compared to similar firms.
A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains somewhat better than rival firms.
Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks great when measured against rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's excellent in relation to peer firms.
For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is better than most similar enterprises.
Usually, sales are mostly on cash. It still ranks almost average when measured against peers.
Normally has approximately three months of sales worth in inventory. It comes up as close to average when compared to competitors.
On average, it takes higher than three months from the purchase to charging customers. It happens to be slightly worse than peers.
On average pays suppliers two months after the purchase. It ranks below average when measured against industry peers.
The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's close to average when compared to similar companies.
To what extent normalized EBITDA covers interest expenses is not known. It stands impossible to compare against rival firms.
Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks top tier when measured against comparable enterprises.
Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks a slight improvement compared to similar firms.
Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 7.6

The Buckle, Inc. looks very cheap in relation to profits and financial position. It happens to be great when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands top-notch against similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still top tier when measured against industry firms.
In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks top-notch against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks encouraging in relation to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a disappointment compared to rival firms.
The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still excellent in relation to peer companies.

Total score: 6.9

Company at a glance: The Buckle, Inc. (BKE)

Sector, industry: Consumer Cyclical, Apparel Retail

Market Cap: 1.66 billions

Revenues TTM: 1.32 billions

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, Salvage, Red by BKE, Daytrip, Gimmicks, Gilded Intent, FITZ + EDDI, Willow & Root, Outpost Makers, Departwest, Reclaim, BKE Vintage, Nova Industries, J.B. Holt, and Veece. The company also provides services, such as hemming, gift-packaging, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. As of March 11, 2022, it operated 440 retail stores in 42 states under the Buckle and The Buckle names. The Buckle, Inc. also sells its products through its website, buckle.com. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991. The Buckle, Inc. was incorporated in 1948 and is headquartered in Kearney, Nebraska.