0R15 8884.0068 1.4156% 0R1E 9171.0 0.0% 0M69 None None% 0R2V 255.5 0.3929% 0QYR 1619.0 0.0% 0QYP 434.5 -0.344% 0RUK None None% 0RYA 1600.0 4.5752% 0RIH 195.2 1.3763% 0RIH 195.2 1.3763% 0R1O 225.5 9877.8761% 0R1O None None% 0QFP None None% 0M2Z 255.0 0.2457% 0VSO 33.3 -6.4738% 0R1I None None% 0QZI 596.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 236.3943 1.5483%
Burberry Group PLC (LON: BRBY)
Burberry Group PLC is an FTSE 100 index listed global luxury goods manufacturer, retailer, and wholesaler. The Company also licenses third parties to manufacture and distribute products using the Burberry trademarks. The Company's segments include retail/wholesale and licensing.
Recent trend of dividend payments
(Data Source: LSE Website, Research done by Kalkine Group)
The chart above demonstrates the consistent dividend payment done by BRBY from FY17 to FY21. The Company maintains a progressive dividend policy and plans to either maintain or grow the dividend in pence terms year on year. BRBY had paid a final dividend of 42.50 per share on 06 August 2021, while the ex-dividend date was 01 July 2021.
Growth Prospects
Key Risks
Now we will analyse some key fundamental and shareholders statistics of Burberry Group PLC.
Trading update (for the Q1FY22, reported on 16 July 2021)
(Source: LSE Website)
Financial Ratios (FY2021)
Share Price Performance Analysis
(Source: Refinitiv, Research done by Kalkine Group)
On 27 September 2021, at 12:13 PM GMT+1, BRBY’s shares were trading at GBX 1,822.50, down by around 0.08% from the previous day closing price. Stock 52-week High and Low were GBX 2,267.00 and GBX 1,324.78, respectively.
From a technical perspective, the stock is hovering between the lower Bollinger band and middle Bollinger band, indicating an upside potential in the stock price. Moreover, the 14-days RSI stood at ~40.99, reflecting an upside momentum in the stock price.
Over the last five years, BRBY’s stock has delivered a decent positive return of ~30.86%. Also, it has outperformed the FTSE All-Share Consumer Staples index with a return of about negative 5.99% and the FTSE 100 index with a return of about 3.76%.
Valuation Methodology: Price/Earnings Approach (NTM) (Illustrative)
Business Outlook
BRBY reported a decent performance in Q1FY22, with retail revenue rising 86% YoY. The Company saw solid growth across regions except for the middle east. The full-price sales accelerated as collections and campaigns attracted new, younger luxury customers to the brand. In addition, the Company saw strong growth across the strategic categories, particularly leather goods and outerwear, and exited markdowns in digital and mainline stores. Despite uncertainty in the global market, the Company remains confident about achieving the medium to long term growth targets.
Considering the improved market outlook, increasing demand for young generations, growth across regions, the better profitability, liquidity than the industry, and support from the valuation as done using the above method, we have given a “BUY” recommendation on Burberry Group Plc at the current price of GBX 1,822.50 (as on 27 September 2021 at 12:13 PM GMT+1), with lower-double digit upside potential based on 26.04x Price/NTM Earnings (approx.) on FY22E earnings per share (approx.).
*The reference data in this report has been partly sourced from REFINITIV.
*All forecasted figures and Peers/ Industry information have been taken from REFINITIV.
*Dividend Yield may vary as per the stock price movement.
*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.
Disclaimer
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