BUCKLE INC (BKE) - Comprehensive Stock Analysis & Investment Research
Deep dive into BUCKLE INC's business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
BUCKLE INC Investment Summary
When evaluating whether BUCKLE INC (BKE) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
BUCKLE INC (BKE) operates within the Trade & Services sector, specifically in the Retail-Family Clothing Stores industry. The company employs approximately 4,706 people. With a market capitalization of $3 billion, the company is a mid-cap stock that typically offers a balance between growth potential and established business operations.
Financial Performance Analysis
BUCKLE INC generates annual revenues of approximately $1 billion. The company maintains solid profitability with a net margin of 13.5%, indicating healthy operational efficiency.
From a profitability standpoint, the company delivers an outstanding Return on Equity (ROE) of 63.7%, demonstrating excellent shareholder value creation and management effectiveness. The Return on Assets (ROA) stands at 29.7%, indicating efficient asset utilization. The gross margin of 39.5% indicates healthy product or service economics.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 1.82x shows adequate liquidity for meeting short-term liabilities. The debt-to-equity ratio of 0.54x indicates moderate leverage, typical for many established companies.
Cash Flow Generation
BUCKLE INC generates $218 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $240 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by 74.1%, showing strong cash flow momentum.
Valuation Analysis
The P/E ratio of 13.8x suggests the stock may be undervalued relative to its earnings, potentially offering value for investors. However, low P/E ratios can also reflect market concerns about future growth prospects. The price-to-book ratio stands at 5.83x, reflecting significant intangible value and market expectations of future growth. For income-focused investors, the current dividend yield of 0.09% offers modest income, with the company likely retaining more earnings for growth.
AI-Powered Price Predictions
Investment Considerations
When determining whether BUCKLE INC is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a mid-cap stock, BUCKLE INC may offer a balance of growth potential and established business fundamentals.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
BUCKLE INC (Stock Symbol: BKE) is a prominent company operating within the Trade & Services sector, with a specific focus on the Retail-Family Clothing Stores industry. The company's shares are publicly traded on the NYSE exchange.
Leadership & Workforce
The organization employs approximately 4,706 professionals, indicating a well-established company with meaningful operational scale and the human resources necessary to compete effectively in its markets.
Market Classification
With a market capitalization of $3 billion, BUCKLE INC is classified as a mid-cap stock. Mid-cap companies often represent businesses in a growth phase, having moved beyond the early startup stage but still possessing significant expansion potential. These stocks can offer an attractive balance between the growth potential of smaller companies and the stability of larger corporations.
Sector & Industry Context
Operating within the Trade & Services sector, BUCKLE INC is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Revenue & Growth Analysis
BUCKLE INC generates annual revenues of $1 billion , indicating a well-established business with proven market demand for its products or services. This revenue base supports sustainable operations and provides capacity for continued growth investments.
Profitability Analysis
The company achieves a 13.5% net profit margin, demonstrating healthy profitability and efficient operations. This margin level provides comfortable coverage for reinvestment in the business, dividend payments, and building financial reserves for future opportunities or challenges.
Gross profit margin stands at 39.5%, a moderate margin common in manufacturing, retail, or distribution-heavy businesses where competition or cost structures limit pricing flexibility.
Operating margin is 16.5%, showing solid operational efficiency with balanced investment in sales, marketing, research, and administrative functions.
Market Valuation
Current market capitalization stands at $3 billion . This mid-cap classification represents companies that have proven their business models but still have significant growth runway. Mid-caps often offer an attractive blend of growth potential and established operations.
Return on Investment Metrics
Return on Equity (ROE) measures 63.7%, demonstrating exceptional efficiency in generating profits from shareholder equity. ROE at this level indicates excellent capital allocation and strong competitive positioning, making the company highly attractive to growth-focused investors.
Return on Assets (ROA) stands at 29.7%, representing exceptional asset efficiency typically seen in asset-light business models like software or consulting companies.
Return on Invested Capital (ROIC) measures 36.7%, indicating the company generates exceptional returns on the capital invested in its operations, a hallmark of companies with sustainable competitive advantages.
Cash Flow Generation
Free cash flow generation of $218 million annually represents healthy cash conversion that supports ongoing operations and provides capital for growth initiatives or shareholder returns.
Operating cash flow reaches $240 million , with year-over-year growth of 74.1%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
BUCKLE INC strategically competes in the highly dynamic Retail-Family Clothing Stores marketplace. As a mid-cap company, it occupies an attractive position balancing growth potential with established operations. Mid-caps often represent the 'sweet spot' for investors seeking companies that have proven their business models but still have meaningful runway for expansion. These companies are large enough to have competitive advantages but nimble enough to adapt quickly to market changes.
Industry Competitive Landscape
BUCKLE INC competes within the Trade & Services sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $218 million annually , with year-over-year cash flow growth of 74.1%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 39.5% gross margin reflecting moderate pricing power typical of many manufacturing, retail, or service businesses. While not exceptionally high, these margins provide adequate room for operating expenses and profit generation. Competitive pressures or cost increases could impact profitability if margins compress.
Operating margin of 16.5% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This healthy operating margin shows balanced investment in growth functions while maintaining reasonable profitability.
Asset Utilization Efficiency
Asset turnover ratio of 1.53x indicates exceptional efficiency in utilizing company assets to generate revenue. High asset turnover is characteristic of retail, distribution, or service businesses that operate with relatively lean asset bases. This efficiency translates to higher returns on invested capital when combined with reasonable margins.
Financial Strength & Leverage
Current ratio of 1.82 indicates adequate liquidity to meet short-term obligations with reasonable cushion. This level balances working capital efficiency with financial safety.