BK

Buckle Inc

BKE
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Buckle Inc AI Insights

Informational only. Not investment advice.
As of 2026-01-16

Snapshot

  • ROE TTM of 41.3% vs industry median 8.8% - 4.7x advantage with zero goodwill on balance sheet[Return on Equity]
  • Operating margin TTM 20.1% vs industry median 4.0% - 5x peer profitability on specialty retail model[Operating Margin]
  • FCF TTM of 215M (16.8% of revenue) funds 1.40/share dividend - 34% payout vs 1.3% industry median[Free Cash Flow]

Watch Triggers

  • Operating Margin: Falls below 15% TTMMargin compression would signal pricing power erosion and justify P/S multiple contraction
  • Total Revenue 1Y Growth: Turns negative for 2 consecutive quartersRevenue decline in specialty retail typically accelerates - early exit signal
  • Inventory: Exceeds 200M (20%+ increase)Inventory buildup at 166M currently; spike signals demand weakness or markdown risk

Bull Case

Elite capital efficiency: ROIC TTM 24.3% vs industry 4.6% median with tangible book value of 511M (no goodwill impairment risk). Asset-light model generates 1.24x asset turnover.

ROICTangible Book ValueAsset Turnover

Revenue growth 9.3% TTM outpacing industry median 1.5% while maintaining 49% gross margin - pricing power intact in discretionary retail.

Total Revenue 1Y GrowthGross Margin

Bear Case

P/S ratio 2.09 is 5x industry median 0.42 - premium valuation requires sustained margin outperformance in cyclical retail sector.

P/S RatioOperating Margin

Debt/equity 0.73 with 375M total debt on 511M equity - leverage elevated for discretionary retailer facing consumer spending volatility.

Debt to EquityTotal Debt

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
62%

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Forward Thesis

Cash generation sustains above-market dividends despite modest revenue growth trajectory

1-3yhigh
  • FCF margin 16.8% with capex only 3.5% of revenue
  • 316M cash (31% of equity) provides buffer
  • 7-year avg payout ratio 33% is sustainable
FCF TTM 215M vs 44M capexDividend 1.40/share on 4.09 EPS TTMCash 316M exceeds current liabilities 244M
Valuation Context
Caveats

Public Strategies Rankings

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Fundamental company data provided by Morningstar, updated daily.

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