Boot Barn Holdings Inc (BOOT, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $2.76 billion. The current price of BOOT stock is $90.98, reflecting a 3.83% gain over the past week and an impressive 15.27% gain over the past three months. When compared to the GF Value of $88.21, the stock is currently deemed to be Fairly Valued, a shift from its previous status of Modestly Undervalued when the GF Value was at $93.02. This change in valuation indicates a positive adjustment in investor sentiment and market expectations surrounding the company's performance.
Introduction to Boot Barn Holdings Inc
Boot Barn Holdings Inc operates within the cyclical retail industry, specializing in the sale of western and work-related footwear, apparel, and accessories across the United States. The company's business model is streamlined into a single operating segment that encompasses revenue from both its physical retail stores and e-commerce platforms. As a niche player in the retail sector, BOOT has carved out a distinctive market presence, catering to a specific consumer demographic with its unique product offerings.
Assessing BOOT's Profitability
BOOT's financial health is robust, as evidenced by its high Profitability Rank of 9/10. The company's operating margin stands at 13.07%, outperforming 85.03% of 1,109 companies in the same industry. Additionally, BOOT's return on equity (ROE) is an impressive 20.08%, surpassing 82.78% of its peers. The return on assets (ROA) at 10.53% and return on invested capital (ROIC) at 13.33% further demonstrate BOOT's efficiency in generating profits relative to its assets and invested capital, respectively. These figures not only highlight BOOT's profitability but also its consistent performance over the past decade.
Growth Trajectory of BOOT
BOOT's growth metrics are equally impressive, with a Growth Rank of 10/10. The company's 3-year revenue growth rate per share is 23.60%, which is better than 85.84% of 1,038 companies in the same industry. Over a 5-year period, the revenue growth rate per share is 18.10%, outpacing 85.92% of 923 companies. Looking ahead, BOOT's total revenue growth rate is estimated at 7.98% for the next 3 to 5 years, which is more favorable than 70.8% of 226 companies. The 3-year EPS without NRI growth rate stands at a remarkable 50.80%, and the 5-year rate is at 45.90%, indicating strong earnings growth that surpasses the majority of its competitors.
BOOT's Shareholder Landscape
Notable investors have taken an interest in BOOT, with Jim Simons (Trades, Portfolio) holding 207,500 shares, representing a 0.68% share percentage. Steven Cohen (Trades, Portfolio) follows with 148,323 shares, accounting for 0.49% of the shares, and PRIMECAP Management (Trades, Portfolio) holds 65,830 shares, making up 0.22%. The involvement of these significant shareholders could potentially influence BOOT's stock performance and strategic direction.
Competitive Analysis
When compared to its competitors, BOOT holds a competitive edge in the market. Foot Locker Inc (FL, Financial) has a market cap slightly lower at $2.66 billion, while Carter's Inc (CRI, Financial) stands a bit higher at $3.05 billion, and Buckle Inc (BKE, Financial) trails with a market cap of $1.99 billion. BOOT's strong profitability and growth metrics position it favorably within this competitive landscape.
Conclusion
In conclusion, Boot Barn Holdings Inc's stock performance has been buoyed by its fair valuation, consistent profitability, and robust growth. The company's strategic focus on a niche market within the retail-cyclical industry has paid dividends, as reflected in its financial metrics and market capitalization. The confidence of significant shareholders and BOOT's favorable comparison with its competitors further solidify its market standing and future prospects. Investors and market watchers will undoubtedly keep a close eye on BOOT as it continues to navigate the dynamic retail landscape.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
