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Burberry Group (BURBY)
OTHER OTC:BURBY

Burberry Group (BURBY) AI Stock Analysis

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Burberry Group

(OTC:BURBY)

Rating:54Neutral
Price Target:
Burberry Group faces financial challenges with declining revenue and profitability, alongside increased leverage and reduced ROE. The technical indicators suggest bearish momentum with the stock trading below key moving averages. Despite a high P/E ratio indicating potential overvaluation, the high dividend yield offers some attractiveness. Overall, the stock scores moderately due to financial and market concerns.

Burberry Group (BURBY) vs. SPDR S&P 500 ETF (SPY)

Burberry Group Business Overview & Revenue Model

Company DescriptionBurberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. Burberry Group plc sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. As of April 2, 2022, the company operated 218 stores, 143 concession stores, 57 outlets, and 38 franchise stores. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. Burberry Group plc was founded in 1856 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyBurberry Group makes money primarily through the sale of luxury fashion goods and accessories. The company's revenue model is centered around its retail and wholesale operations. Retail sales are conducted through Burberry's own branded stores, e-commerce platforms, and concessions. Wholesale revenue is generated by selling products to department stores and specialty retailers. Additionally, Burberry earns from licensing agreements, particularly in the eyewear and beauty segments. The company's financial performance is bolstered by its strong brand recognition, strategic partnerships in fashion and technology, and a focus on digital expansion to enhance customer engagement and reach.

Burberry Group Financial Statement Overview

Summary
Burberry Group demonstrates strong cost management and cash generation capability, but faces challenges in revenue growth and profitability sustainability. The increase in leverage and reduced ROE warrant attention, indicating some financial stability concerns.
Income Statement
65
Positive
The company shows a mixed performance with a declining revenue trend over recent years, from $3,094M to $2,968M. Gross profit margin remains strong at 67.7% for 2024, indicating effective cost management. However, the net profit margin has decreased to 9.1% from 15.8% in the previous year, suggesting challenges in maintaining profitability.
Balance Sheet
60
Neutral
The balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.37, up from the previous year. Equity ratio decreased slightly to 34.0%, indicating a higher reliance on debt. Return on equity has dropped to 23.5% from 32.0%, reflecting reduced profitability relative to equity.
Cash Flow
70
Positive
The cash flow statement reveals a decline in free cash flow from $571M to $294M, signaling potential challenges in cash generation. The operating cash flow to net income ratio is robust at 1.87, suggesting efficient cash generation relative to net income.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
2.97B3.09B2.83B2.34B2.63B
Gross Profit
2.01B1.84B1.68B1.37B1.44B
EBIT
418.00M640.00M514.00M416.40M467.80M
EBITDA
522.00M1.01B855.00M693.10M524.80M
Net Income Common Stockholders
270.00M490.00M396.00M376.00M121.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
441.00M1.03B1.22B1.26B928.90M
Total Assets
3.37B3.69B3.70B3.50B3.29B
Total Debt
1.57B1.49B1.40B1.36B1.47B
Net Debt
1.13B460.00M179.00M100.80M538.20M
Total Liabilities
2.22B2.15B2.08B1.94B2.07B
Stockholders Equity
1.15B1.53B1.61B1.56B1.21B
Cash FlowFree Cash Flow
294.00M571.00M534.00M473.70M301.40M
Operating Cash Flow
506.00M750.00M699.00M591.40M455.80M
Investing Cash Flow
-231.00M-153.00M-167.00M-93.10M-154.10M
Financing Cash Flow
-865.00M-815.00M-578.00M-156.50M-260.20M

Burberry Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.95
Price Trends
50DMA
11.17
Positive
100DMA
12.20
Positive
200DMA
11.18
Positive
Market Momentum
MACD
1.01
Positive
RSI
72.92
Negative
STOCH
76.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BURBY, the sentiment is Positive. The current price of 14.95 is above the 20-day moving average (MA) of 13.90, above the 50-day MA of 11.17, and above the 200-day MA of 11.18, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 72.92 is Negative, neither overbought nor oversold. The STOCH value of 76.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BURBY.

Burberry Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TPTPR
76
Outperform
$16.60B21.0340.27%1.75%2.67%1.31%
SISIG
70
Outperform
$3.29B86.772.04%1.60%-3.98%-93.50%
63
Neutral
$790.42M-8.75%7.08%-42.22%
63
Neutral
$6.98B11.412.80%4.24%2.68%-24.94%
54
Neutral
$5.28B85.32-7.31%7.44%-12.55%-91.21%
49
Neutral
$2.07B-120.18%-12.34%-574.65%
44
Neutral
$289.34M-195.94%-22.86%-38.76%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BURBY
Burberry Group
14.95
2.32
18.37%
TPR
Tapestry
81.75
39.88
95.25%
CPRI
Capri Holdings
18.03
-14.59
-44.73%
SIG
Signet Jewelers
79.19
-27.42
-25.72%
LUXE
LuxExperience
9.00
3.42
61.29%
LANV
Lanvin Group Holdings
2.09
0.04
1.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.