The Buckle Inc.: Financial Insights and Future Growth Prospects
The Buckle Inc. is a mid-to-high range price class retailer of seasonal clothing, footwear, and accessories, targeting young men and women aspiring for fashion. Until January 28, 2023, it operated in 441 retail stores under the names Buckle and Buckle Youth across 42 states.
The company offers a range of daily clothing items from various brand names, including jeans, other everyday wear, sportswear, outerwear, accessories, and footwear. The company places special emphasis on its customers and provides services such as free alterations, complimentary gift wrapping, convenient layaway options, the Buckle private credit card, and a guest loyalty program.
Financial Performance and Ratios
The Buckle Inc. has shown solid financial performance over recent. Key financial ratios include: Return on Equity (ROE): 41.12%; Return on Assets (ROA): 15.92%; Gross Margin: 58.72%; Net Profit Margin: 21.01%; Debt to Equity Ratio: 0.67; Quick Ratio: 1.57; Current Ratio: 2.37.
The Buckle Inc Stock Price Performance
The Buckle Inc.’s stock price has performed well over the past year. As of December 6, 2024, the stock price is $53.04, with a 52-week range of $34.87 to $54.25. The company has seen a 1-year return of 44.22% and a 5-year return of 229.63%. But the 10-year CAGR of the stock price was only 2.79%.
Investment Insight
This company boasts a robust profile with a high Investment Scoreboard, indicating strong potential for future growth. However, current market indicators suggest that the stock is significantly overvalued at this time. Therefore, purchasing shares now may not be advisable. Equity risk premium is about 3% only.
The Buckle Inc Stock Forecast**
| MIN/MAX | 2024 | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|---|
| MIN | 29.19 | 31.76 | 34.54 | 37.58 | 40.88 |
| MAX | 45.42 | 49.40 | 53.74 | 58.46 | 63.69 |
When to buy?
Purchasing should only be considered once there is a significant price adjustment.
Dividend Policy
The Buckle Inc. has a modest dividend policy. The current dividend yield is 2.64%, with a payout ratio of 35.56%. The company has maintained a consistent dividend payment streak.
Conclusion
The Buckle Inc. is a well-established retailer with solid financial performance, offering a wide range of clothing and accessories. Despite its robust profile and strong investment scoreboard, the current stock price appears significantly overvalued. Investors are advised to wait for a significant price adjustment before purchasing shares to maximize potential returns.
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*Investment analysis involves scrutinizing over 50 different criteria to assess a company's ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.