Buckle Inc. (The) Common Stock (BKE)

FairStock Score: 68/100 — STEADY

Key Financials

Strengths

• Generates $150 million in annual free cash flow (5.2% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 49.4% demonstrating efficient capital deployment
• Altman Z-Score of 4.4 confirms minimal bankruptcy risk and strong solvency
• Attractive 2.5% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($28) with negative 103% margin of safety—limited downside protection

AI Analysis

Buckle Inc. (The) Common Stock is a small-cap consumer cyclical company valued at $2.9 billion. The business generates $1.3 billion in annual revenue with a 6.2% net margin and $150 million in free cash flow. From a quality standpoint, Buckle shows solid Piotroski F-Score of 7/9 and healthy Altman Z-Score of 4.4. On valuation, the stock is attractively valued at 13.6x earnings, with trades far above its Graham Number ($28) with no margin of safety. Growth dynamics show revenue growing at 5.3% and profit growth of 4.7%. The 2.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 68/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Buckle's consistent 49% ROE at just 14x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $150 million in annual free cash flow (5.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer