Burnham Holdings (BURCA) AI Stock Analysis

• Market Cap: $96.76M
• Dividend Yield: 3.65%
• Average Volume (3M): 1.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: 9.47%
• EPS Growth: 9.19%
• Country: US
• Employees: 840
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -6.68
• Shares Outstanding: 2,960,000
• 10 Day Avg. Volume: 1,159
• 30 Day Avg. Volume: 1,175
• PEG Ratio: 0.01
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -14.90
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 1.70
• Enterprise Value/Ebitda: 6.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $27.00 ▲(8.87% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held back primarily by the 2025 profitability reversal (net loss) and sharply weaker cash flow/free cash flow, despite a relatively conservative, improving leverage profile. Technicals are supportive with price above key moving averages and positive MACD, and valuation is attractive with a low P/E and solid dividend yield.

Positive Factors

Conservative Balance Sheet

A modest debt-to-equity profile and declining total debt through 2025 support financial flexibility. This conservatism reduces refinancing risk, preserves borrowing capacity for capex or acquisitions, and helps the company withstand cyclical downturns in HVAC demand over the next 2–6 months.

Historical Revenue Growth & Diversified Streams

Multi-year mid-to-high single-digit top-line expansion and diversified channels (manufacturing, distribution, service contracts) indicate durable demand and recurring revenue. This mix supports steady cash inflows and reduces reliance on single-product cycles, aiding stability over months ahead.

Structural Demand Tailwinds

Ongoing regulatory incentives and long-term shifts toward energy-efficient heating create sustainable market tailwinds. Burnham's focus on high-efficiency boilers and energy management positions it to capture policy-driven replacement and retrofit spending over the medium term.

Negative Factors

2025 Profitability Reversal

A swing to a net loss in 2025 signals material earnings volatility and raises the risk that below-the-line items or one-offs could impair recurring profitability. Sustained losses would erode equity and constrain reinvestment or dividend capacity over the coming quarters.

Cash Flow Volatility

Sharp deterioration in operating cash flow and negative free cash flow increase funding risk, potentially forcing reliance on external financing or asset sales. Volatile cash conversion undermines capacity to fund working capital, capex, and shareholder returns reliably over the next several months.

Revenue Decline in 2025

A revenue decline after multi-year growth suggests demand sensitivity or competitive pressure that could persist. Combined with margin deterioration, this weakens medium-term earnings visibility and reduces confidence in sustained margin recovery without clear corrective action.

Burnham Holdings Business Overview & Revenue Model

Company Description

Burnham Holdings, Inc. designs, manufactures, and sells boilers and related heating, ventilation, and air conditioning products and accessories for residential, commercial, and industrial applications in the United States and internationally. Its residential hydronic heating products include cast iron, stainless steel, aluminum, and steel boilers; cast iron and steel heat distribution products; and warm air furnaces and central air conditioning systems for the residential heating and cooling markets. The company's commercial and industrial heating products comprise a range of cast iron, stainless steel, fire tube, water tube, and copper tube boilers; and boiler room accessories that are used for various applications, such as military bases, multi-unit residential buildings, health care, government, education, and hospital facilities. It sells its residential products through wholesale distributors to builders, heating contractors, fuel dealers, and utilities for resale to end-use customers; and commercial products primarily through independent sales representatives, directly to contractors, or end users. Burnham Holdings, Inc. is based in Lancaster, Pennsylvania.

How the Company Makes Money

Burnham Holdings generates revenue through the sale of its HVAC products and services, which include residential and commercial heating systems, boilers, and accessories. The company benefits from a diversified revenue model that includes direct sales to customers, partnerships with distributors, and contracts with builders and construction firms. Key revenue streams come from both new installations and replacement sales, as well as ongoing maintenance and service agreements. Additionally, Burnham Holdings may engage in strategic partnerships with other manufacturers and suppliers to enhance product offerings and increase market penetration, contributing significantly to its earnings.

Burnham Holdings Financial Statement Overview

Summary

Mixed fundamentals. Balance sheet strength (modest and declining leverage) is a positive, but 2025 showed a sharp deterioration with a net loss and a major drop in operating cash flow alongside negative free cash flow, raising concerns about earnings and cash conversion stability.

Income Statement

Revenue growth was solid from 2021–2024 (mid-to-high single digits), but 2025 reversed with a ~4.5% decline. Profitability also deteriorated sharply in 2025, swinging from a healthy profit in 2024 to a sizable net loss despite still-positive operating profit, pointing to material below-the-line pressure. Earlier years showed improving margins and earnings off a low base, but the latest year introduces meaningful volatility and lowers confidence in earnings durability.

Balance Sheet

The balance sheet looks relatively conservative: debt is modest versus equity (debt-to-equity around ~0.25–0.38 in recent annual periods), and equity remains sizable even after the 2025 loss. Total debt has trended down from 2022 to 2025, which improves financial flexibility. The key weakness is profitability consistency—returns on equity were decent in 2023–2024 but will likely be pressured by the 2025 loss, which can slow balance-sheet compounding if it persists.

Cash Flow

Cash generation has been inconsistent. Operating cash flow and free cash flow were strong in 2023–2024, but 2025 operating cash flow dropped to near-breakeven and free cash flow turned meaningfully negative, suggesting working-capital swings and/or elevated spending. The company also had a weak cash flow year in 2022 (negative free cash flow), highlighting volatility that increases funding risk during down cycles.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	258.11M	270.19M	252.98M	240.55M	218.51M
Gross Profit	59.31M	61.03M	59.76M	45.68M	35.02M
EBITDA	15.88M	23.21M	20.24M	14.36M	6.39M
Net Income	-28.39M	11.95M	9.43M	5.07M	1.02M
Balance Sheet
Total Assets	175.32M	194.34M	184.67M	176.26M	167.47M
Cash, Cash Equivalents and Short-Term Investments	7.66M	6.35M	5.88M	6.99M	5.65M
Total Debt	22.01M	28.46M	31.54M	35.51M	24.28M
Total Liabilities	71.73M	81.06M	83.24M	85.17M	72.30M
Stockholders Equity	103.59M	113.28M	101.44M	92.56M	95.17M
Cash Flow
Free Cash Flow	-7.86M	10.96M	11.75M	-6.08M	994.00K
Operating Cash Flow	1.34M	22.11M	21.12M	1.20M	10.53M
Investing Cash Flow	15.34M	-12.25M	-11.80M	-7.90M	-10.34M
Financing Cash Flow	-15.35M	-9.39M	-10.44M	7.77M	-295.00K

Burnham Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BURCA, the sentiment is Positive. The current price of 24.8 is below the 20-day moving average (MA) of 24.97, below the 50-day MA of 24.91, and above the 200-day MA of 24.20, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 74.44 is Negative, neither overbought nor oversold. The STOCH value of 88.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BURCA.

Burnham Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPIH	73 Outperform	$273.82M	19.82	17.68%	―	30.74%	-13.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ROCK	61 Neutral	$1.50B	686.35	13.29%	―	-9.21%	-97.43%
BURCA	59 Neutral	$96.76M	-4.55	9.41%	3.65%	9.47%	9.19%
NX	54 Neutral	$1.02B	-4.04	-28.88%	2.12%	43.81%	-584.11%
BXC	49 Neutral	$551.97M	41.02	2.20%	―	-0.19%	-50.51%
JELD	42 Neutral	$174.79M	-0.28	-155.46%	―	-15.28%	-350.51%