Burberry Group (BURBY) AI Stock Analysis

• Market Cap: $5.28B
• Dividend Yield: 7.44%
• Average Volume (3M): 1.64K
• Price to Earnings (P/E): 85.3
• Beta (1Y): 1.37
• Revenue Growth: -12.55%
• EPS Growth: -91.21%
• Country: US
• Employees: 9,336
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Luxury Goods
• EPS (TTM): 0.04
• Shares Outstanding: 359,177,100
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,641
• PEG Ratio: 0.69
• Price to Book (P/B): 6.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• 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 Business Overview & Revenue Model

Company Description

Burberry 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 Money

Burberry 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

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

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

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 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.97B	3.09B	2.83B	2.34B	2.63B
	Gross Profit
2.01B	1.84B	1.68B	1.37B	1.44B
	EBIT
418.00M	640.00M	514.00M	416.40M	467.80M
	EBITDA
522.00M	1.01B	855.00M	693.10M	524.80M
	Net Income Common Stockholders
270.00M	490.00M	396.00M	376.00M	121.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
441.00M	1.03B	1.22B	1.26B	928.90M
	Total Assets
3.37B	3.69B	3.70B	3.50B	3.29B
	Total Debt
1.57B	1.49B	1.40B	1.36B	1.47B
	Net Debt
1.13B	460.00M	179.00M	100.80M	538.20M
	Total Liabilities
2.22B	2.15B	2.08B	1.94B	2.07B
	Stockholders Equity
1.15B	1.53B	1.61B	1.56B	1.21B
Cash Flow		Free Cash Flow
294.00M	571.00M	534.00M	473.70M	301.40M
	Operating Cash Flow
506.00M	750.00M	699.00M	591.40M	455.80M
	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 Price: 14.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPR	76 Outperform	$16.60B	21.03	40.27%	1.75%	2.67%	1.31%
SIG	70 Outperform	$3.29B	86.77	2.04%	1.60%	-3.98%	-93.50%
LUXE	63 Neutral	$790.42M	―	-8.75%	―	7.08%	-42.22%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
BURBY	54 Neutral	$5.28B	85.32	-7.31%	7.44%	-12.55%	-91.21%
CPRI	49 Neutral	$2.07B	―	-120.18%	―	-12.34%	-574.65%
LANV	44 Neutral	$289.34M	―	-195.94%	―	-22.86%	-38.76%