Burnham Holdings (BURCA) AI Stock Analysis

• Market Cap: $91.02M
• Dividend Yield: 3.65%
• Average Volume (3M): 1.18K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.31
• Revenue Growth: 9.47%
• EPS Growth: 9.19%
• Country: US
• Employees: 840
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.34
• Shares Outstanding: 2,960,000
• 10 Day Avg. Volume: 1,159
• 30 Day Avg. Volume: 1,175
• PEG Ratio: 0.21
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 5.90
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.21
• Enterprise Value/Ebitda: 0.63
• 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: 67 Neutral
• Price Target: $27.00 ▲(8.87% Upside)

Burnham Holdings' overall stock score is driven by a strong valuation with a low P/E ratio and attractive dividend yield. Financial performance is stable, with solid profitability and efficient operations, though declining equity levels and negative free cash flow growth are concerns. Technical analysis indicates neutral to slightly bearish sentiment, which tempers the overall score.

Positive Factors

Strong Profitability

Stable margins and solid profitability indicate effective cost management and pricing strategies, supporting long-term financial health.

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities without overburdening debt.

Energy Efficiency Focus

Focus on energy-efficient products aligns with regulatory trends, ensuring sustained demand and competitive positioning in the HVAC market.

Negative Factors

Declining Equity Levels

Decreasing equity levels may indicate challenges in maintaining asset growth and could affect the company's ability to finance future expansions.

Negative Revenue Growth

Negative revenue growth reflects potential market challenges or competitive pressures, which may hinder long-term business expansion.

Negative Free Cash Flow Growth

Negative free cash flow growth limits the company's ability to reinvest in its business, potentially affecting innovation and competitive edge.

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

Burnham Holdings demonstrates solid profitability and efficient operations with stable margins. The balance sheet is strong with low leverage and high return on equity, though declining equity levels warrant attention. Cash flow generation is strong, but negative free cash flow growth could pose challenges for future investments. Overall, the company is financially stable with some areas for improvement.

Income Statement

Burnham Holdings shows a stable gross profit margin around 23% and a net profit margin improving to 5.9% in TTM, indicating enhanced profitability. However, the revenue growth rate is negative at -2.3% in TTM, suggesting a recent decline in sales. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.13 in TTM, indicating conservative leverage. Return on equity is strong at 14.6%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial structure. However, the declining trend in stockholders' equity over recent years could be a concern.

Cash Flow

Operating cash flow to net income ratio is robust at 0.80, indicating strong cash generation relative to net income. However, free cash flow growth is negative at -12.3% in TTM, which could impact future investments. The free cash flow to net income ratio is healthy at 0.68, reflecting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	270.23M	270.19M	252.98M	240.55M	218.51M	187.46M
Gross Profit	62.36M	61.03M	59.76M	45.68M	35.02M	38.48M
EBITDA	20.99M	23.21M	20.24M	14.36M	6.39M	13.37M
Net Income	16.68M	11.95M	9.43M	5.07M	1.02M	6.55M
Balance Sheet
Total Assets	185.10M	194.34M	184.67M	176.26M	167.47M	154.38M
Cash, Cash Equivalents and Short-Term Investments	7.15M	6.35M	5.88M	6.99M	5.65M	5.76M
Total Debt	20.28M	28.46M	31.54M	35.51M	24.28M	23.31M
Total Liabilities	65.30M	81.06M	83.24M	85.17M	72.30M	63.16M
Stockholders Equity	119.80M	113.28M	101.44M	92.56M	95.17M	91.22M
Cash Flow
Free Cash Flow	16.60M	10.96M	11.75M	-6.08M	994.00K	391.00K
Operating Cash Flow	26.47M	22.11M	21.12M	1.20M	10.53M	4.74M
Investing Cash Flow	12.72M	-12.25M	-11.80M	-7.90M	-10.34M	-4.61M
Financing Cash Flow	-38.30M	-9.39M	-10.44M	7.77M	-295.00K	-123.00K

Burnham Holdings Technical Analysis

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

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 24.87, below the 50-day MA of 25.05, and above the 200-day MA of 23.19, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 48.78 is Neutral, neither overbought nor oversold. The STOCH value of 19.88 is Positive, 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	$260.71M	18.87	17.68%	―	30.74%	-13.58%
BURCA	67 Neutral	$91.02M	10.43	9.41%	3.65%	9.47%	9.19%
BXC	66 Neutral	$526.96M	39.17	2.20%	―	-0.19%	-50.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ROCK	60 Neutral	$1.52B	696.76	13.29%	―	-9.21%	-97.43%
NX	54 Neutral	$754.09M	-3.01	-28.88%	2.12%	43.81%	-584.11%
JELD	40 Underperform	$206.74M	-0.32	-155.46%	―	-15.28%	-350.51%