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Buckle Trades Close to Its Historical Low P/S Ratio

Stock price has been declining for 5 years

June 17, 2016 | About:

Buckle Inc. (NYSE:BKE) is trading at P/S ratio of 1.13, close to its 10-year low of 1.01.

Buckle has a market cap of $1.26 billion; its shares were traded around $25.98 with a P/E ratio of 9.12 and P/S ratio of 1.13. Buckle's trailing 12-month dividend yield is 3.69%. Its forward dividend yield is 3.98%. Buckle had an annual average earnings growth of 15% over the past 10 years. GuruFocus rated Buckle the business predictability rank of 2.5-star.

Buckle's stock prices have been declining for the last five years. The company’s revenue per share and operating margin have been declining. Buckle explains that its sales have been decreasing due to fewer customers purchasing products, increased expenses from the construction and remodeling of stores and increased competition with specialty retailers such as Abercrombie & Fitch (NYSE:ANF) and Urban Outfitters (NASDAQ:URBN), department stores like Dillard's (NYSE:DDS) and Macy’s (NYSE:M) and online stores.



Buckle’s business strategy includes placing its retail stores in shopping malls and high-traffic locations in order to expose its brands to more people as well as compete directly with its competitors. The company also plans to increase business by increasing customer loyalty through the expansion of key brand and private label merchandise. Buckle especially focuses on providing many styles, fits and brands of denim and tops, both of which contribute heavily to the company’s total sales.

GuruFocus has found one severe warning sign for Buckle:

  • High short percentage of float.

In the first quarter, Buckle reported a 10.2% decrease in its net sales to $243.5 million from last year’s net sales of $271.3 million. Buckle announced net income of $23.1 million compared to last year’s net income of $33.6 million.

Recent trades

Guru Joel Greenblatt (Trades, Portfolio) kept his position in Buckle unchanged or slightly adjusted. He owns 611,957 shares.

Director Bill L. Fairfield bought 200 shares of Buckle stock on May 24 at the average price of $23.53. VP Sales Michelle Hoffman and SVP Men's Merchandising Robert M. Carlberg together sold 11,500 shares of Buckle stock in February and March.

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Rating: 0.0/5 (0 votes)


Dr. Paul Price
Dr. Paul Price - 2 years ago    Report SPAM

Buckle paid a cumulative $13.22 per share in special dividends during FY 2010 through FY 2014.

They paid an additional $1 per share extra this year.

That has a huge impact on the backward-looking total return figures at the Jun. 17, 2016, closing quote of $25.16, with did not take those amounts, or the decent regular dividend payments into account.

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