Burlington Stores Inc (BURL, Financial), a prominent player in the cyclical retail industry, has recently witnessed a notable uptick in its stock performance. With a market capitalization of $14.41 billion, the company's stock price stands at $223.29. Over the past week, BURL has seen a modest 0.22% gain, while the past three months have been more impressive, with a 16.82% increase. This growth trajectory aligns with the GF Value of $226.39, suggesting that the stock is Fairly Valued. This is a slight shift from three months ago when the stock was considered Modestly Undervalued with a GF Value of $223.58.
Company Overview
Burlington Stores Inc operates within the competitive retail - cyclical sector. As the third-largest off-price apparel and home fashion retailer in the United States, Burlington boasts a network of 927 stores. The company's business model thrives on offering a diverse product range from over 5,000 brands at prices up to 60% lower than traditional retailers. Burlington's strategy focuses on creating a treasure-hunt shopping experience in a no-frills environment. The product mix includes accessories, footwear, women's apparel, home décor, menswear, youth apparel, baby products, and outerwear, with all sales generated domestically. 
Profitability Insights
Burlington's financial health is robust, as indicated by its Profitability Rank of 8/10, which signifies strong profitability within the industry. The company's Operating Margin stands at 5.28%, outperforming 59.78% of its peers. Furthermore, the Return on Equity (ROE) is an impressive 38.02%, surpassing 92.62% of competitors. The Return on Assets (ROA) at 4.16% and Return on Invested Capital (ROIC) at 6.08% also indicate Burlington's efficiency in generating profits relative to its assets and invested capital, respectively. These figures are better than the majority of the industry, with Burlington maintaining profitability for 9 out of the past 10 years. 
Growth Trajectory
The company's Growth Rank is 7/10, reflecting strong growth prospects. Burlington's 3-Year Revenue Growth Rate per Share is 6.80%, which is higher than 56.95% of industry peers. The 5-Year Revenue Growth Rate per Share is even more impressive at 8.70%, outpacing 71.04% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 5.65%, which is better than 54.87% of the industry. However, the 3-Year EPS without NRI Growth Rate shows a decline of -17.60%, which, while not ideal, is still better than 20.56% of the industry. 
Top Shareholders
PRIMECAP Management (Trades, Portfolio) leads as the top holder of Burlington Stores Inc, with 620,100 shares, representing 0.96% of the company. Philippe Laffont (Trades, Portfolio) follows with 399,709 shares, accounting for 0.62%, and Steven Cohen (Trades, Portfolio) holds 253,856 shares, making up 0.39% of the company's shares.
Competitive Landscape
When compared to its competitors, Burlington Stores Inc holds a strong market position. Gap Inc (GPS, Financial) has a market cap of $7.22 billion, American Eagle Outfitters Inc (AEO, Financial) is valued at $5.02 billion, and Urban Outfitters Inc (URBN, Financial) stands at $3.93 billion. These figures highlight Burlington's significant lead in market capitalization within the industry.
Conclusion
In summary, Burlington Stores Inc's recent stock performance reflects its strong market position, underpinned by solid profitability and growth prospects. The company's ability to outperform a significant portion of its competitors in key financial metrics, combined with its strategic business model, positions it well for future success. While the stock is currently deemed Fairly Valued according to the GF Value, the positive trends in profitability and growth may continue to influence investor confidence and stock performance. As such, Burlington Stores Inc remains an attractive option for investors seeking exposure to the retail - cyclical sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
