Burlington Stores Inc (BURL, Financial), a prominent player in the cyclical retail industry, has demonstrated a remarkable stock performance recently. With a current market capitalization of $15.03 billion, the stock price has surged to $235.36, marking a 28.84% increase over the past week and a 17.24% increase over the past three months. According to the GF Value, which is currently set at $223.27, the stock is considered Fairly Valued. This valuation aligns with its past GF Value of $220.47, maintaining a consistent assessment over the period.
Overview of Burlington Stores Inc
Burlington Stores Inc operates as a dynamic off-price retailer, offering a diverse range of in-season, fashion-focused merchandise. The company's extensive product lineup includes women's apparel, menswear, youth apparel, baby products, beauty items, footwear, accessories, home goods, toys, gifts, and coats. Burlington acquires high-quality, current-brand merchandise directly from nationally recognized manufacturers and suppliers, ensuring a compelling shopping experience for customers. 
Assessing Burlington's Profitability
Burlington Stores boasts a high Profitability Rank of 8/10, indicating robust profitability within its industry. The company's operating margin stands at 5.63%, which is superior to 62.14% of its peers in the industry. Additionally, Burlington's Return on Equity (ROE) is an impressive 39.77%, outperforming 92.94% of competitors. Its Return on Assets (ROA) and Return on Invested Capital (ROIC) are 4.67% and 6.56% respectively, both showcasing strong financial management. Burlington has maintained profitability for 9 out of the past 10 years, further solidifying its market position. 
Growth Trajectory of Burlington Stores
The company's Growth Rank is also impressive at 8/10. Burlington has achieved a 3-Year Revenue Growth Rate per Share of 19.70%, ranking better than 80.06% of its industry peers. Over a 5-year period, this rate stands at 9.60%. Looking ahead, analysts estimate a Total Revenue Growth Rate of 10.20% for the next 3 to 5 years, and an EPS Growth Rate of 18.10% for the same period, both metrics showcasing strong future potential. 
Notable Investors in Burlington Stores
Several prominent investors hold significant stakes in Burlington Stores, reflecting confidence in its future performance. Philippe Laffont (Trades, Portfolio) holds 805,892 shares, representing 1.26% of the company. PRIMECAP Management (Trades, Portfolio) owns 607,930 shares, accounting for 0.95%, and Steven Cohen (Trades, Portfolio) has invested in 105,290 shares, making up 0.16% of the company.
Competitive Landscape
Burlington Stores operates in a competitive environment with major players such as Gap Inc (GPS, Financial) with a market cap of $8.37 billion, American Eagle Outfitters Inc (AEO, Financial) valued at $4.51 billion, and Urban Outfitters Inc (URBN, Financial) at $3.91 billion. Despite the stiff competition, Burlington's strong financial metrics and growth prospects position it well within the industry.
Conclusion
Burlington Stores Inc has demonstrated robust financial health and growth prospects within the cyclical retail industry. The company's impressive stock performance and stable valuation, supported by strong profitability and growth metrics, make it an attractive option for investors. With notable investors maintaining significant holdings, the confidence in Burlington's future performance remains high, suggesting a promising outlook for the company.
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.
