Burberry Group plc (LON:BRBY): Commentary On Fundamentals

Burberry Group plc (LSE:BRBY) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of BRBY, it is a financially-sound , dividend-paying company with a a great history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Burberry Group here.

Flawless balance sheet established dividend payer

BRBY has a strong track record of performance. In the previous year, BRBY delivered an impressive double-digit return of 20.60% Unsurprisingly, BRBY surpassed the Luxury industry return of 20.60%, which gives us more confidence of the company’s capacity to drive earnings going forward. BRBY’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. BRBY’s has produced operating cash levels of 29.24x total debt over the past year, which implies that BRBY’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:BRBY Income Statement Jun 19th 18

For those seeking income streams from their portfolio, BRBY is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.92%.

LSE:BRBY Historical Dividend Yield Jun 19th 18

Next Steps:

For Burberry Group, I’ve compiled three pertinent factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for BRBY’s future growth? Take a look at our free research report of analyst consensus for BRBY’s outlook.

2. Valuation: What is BRBY worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BRBY is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BRBY? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.