📊 AI Stock Rating — Summary

In the most recent quarter, Burlington Stores reported revenue of $2.70 billion with net income of $94.2 million, resulting in an EPS of $1.49. The company faced a negative free cash flow of $11.6 million. Revenue has shown moderate growth year-over-year, providing a steady top-line performance. Profitability appears challenged by operational costs, as indicated by a very thin net margin under 3.5%. Despite this, Burlington's use of debt is notable, with net debt reaching approximately $5.1 billion, suggesting high leverage but also significant financial maneuvering capacity. The company's ability to generate cash flows from operations remains strong, but capital expenditures have led to negative free cash flow. Burlington's stock has room for further appreciation based on consensus analyst targets ranging up to $430, indicating perceived headroom above current valuations.

AI Score Breakdown

Revenue Growth — Score: 6/10

Burlington Stores experienced steady revenue growth, supported by robust sales channels. However, growth is relatively moderate and underlines a stable yet unspectacular expansion trajectory.

Profitability — Score: 5/10

Net margins at approximately 3.5% indicate slim profitability. Although EPS remains positive, the efficiency is somewhat strained by significant operational costs.

Cash Flow Quality — Score: 4/10

Free cash flow is negative at -$11.6 million, impacted by high capex. Operational cash flows remain strong, but investments in growth are placing pressure on liquidity.

Leverage & Balance Sheet — Score: 5/10

High leverage noted with net debt at $5.1 billion against total equity of $1.45 billion. While creating operational flexibility, this also represents significant financial commitments.

Shareholder Returns — Score: 7/10

Stock repurchases totaling $27.3 million have been undertaken. Analysts' price targets suggest further upside is possible, enhancing potential investor returns despite the absence of dividends.

Analyst Sentiment & Valuation — Score: 7/10

With consensus price targets significantly above current levels, Burlington Stores appears to have market optimism. This, coupled with ongoing operational improvements, suggests a balanced valuation outlook.

⚠ AI-generated — informational only, not financial advice.