Buckle Inc (BKE) stock analysis

P/E above its 5-year median

Buckle's P/E of 10.2 is above its own 5-year median of 9.0.

P/E below the industry

Buckle's P/E of 10.2 is below the Family Clothing Stores median of 12.0.

EV/EBITDA above its 5-year median

Buckle's EV/EBITDA of 7.2 is above its 5-year median of 6.2.

P/B above the industry

Buckle's price-to-book of 4.64 is above the Family Clothing Stores median of 2.58.

Trading above fair value

The share price of $44.08 is above our fair value estimate of $43.80.

Margin of safety under 20%

The price is 0.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -1.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -6.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 9.6% over the last twelve months, against a 5-year average of 10.0% a year.

Growing faster than the industry

Revenue grew 6.2% over the last twelve months; the Family Clothing Stores median is 5.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 49.0% over the last twelve months, against 48.9% a year earlier.

Return on equity over 15%

Return on equity was 45.8% over the last twelve months and averaged 59.5% over five years.

Return on capital over 10%

Return on invested capital was 117%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Buckle's return on equity of 45.8% is above the Family Clothing Stores median of 40.5%.

Earnings grew over 5 years

Net income grew 10.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 16.6% over the last twelve months, against a 5-year average of 17.7%.

Net margin above the industry

Buckle's net margin of 16.6% is above the Family Clothing Stores median of 9.3%.

No debt

Buckle has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 2.08 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.90; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Buckle paid dividends worth 10.0% of the share price over the last twelve months.

Yield above Treasuries

The 10.0% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Buckle yields 10.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 102% of net income, leaving little room.

Not covered by free cash flow

Dividends take 118% of free cash flow.