Why BIRKENSTOCK HOLDING PLC (NYSE:BIRK) Is a Promising High-Growth Stock in the Midst of Consolidation.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether BIRKENSTOCK HOLDING PLC (NYSE:BIRK) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but BIRKENSTOCK HOLDING PLC has surfaced on our radar for growth with base formation, warranting further examination.

What does the Growth looks like for BIRK

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of BIRK, the assigned 9 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 155.71% over the past year.
• The Earnings Per Share has been growing by 32.40% on average over the past years. This is a very strong growth
• Looking at the last year, BIRK shows a very strong growth in Revenue. The Revenue has grown by 20.96%.
• BIRK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.33% yearly.
• The Earnings Per Share is expected to grow by 27.85% on average over the next years. This is a very strong growth
• BIRK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.64% yearly.

A Closer Look at Health for BIRK

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For BIRK, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 3.21 indicates that BIRK is not in any danger for bankruptcy at the moment.
• The Debt to FCF ratio of BIRK is 3.59, which is a good value as it means it would take BIRK, 3.59 years of fcf income to pay off all of its debts.
• BIRK has a Debt to FCF ratio of 3.59. This is in the better half of the industry: BIRK outperforms 62.00% of its industry peers.
• A Debt/Equity ratio of 0.48 indicates that BIRK is not too dependend on debt financing.
• BIRK has a Current Ratio of 2.84. This indicates that BIRK is financially healthy and has no problem in meeting its short term obligations.
• BIRK has a Current ratio of 2.84. This is amongst the best in the industry. BIRK outperforms 82.00% of its industry peers.

Profitability Insights: BIRK

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, BIRK has achieved a 7:

• BIRK has a Return On Assets of 4.37%. This is in the better half of the industry: BIRK outperforms 62.00% of its industry peers.
• With an excellent Profit Margin value of 11.75%, BIRK belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• BIRK's Profit Margin has improved in the last couple of years.
• BIRK has a better Operating Margin (25.19%) than 96.00% of its industry peers.
• In the last couple of years the Operating Margin of BIRK has grown nicely.
• With a decent Gross Margin value of 58.70%, BIRK is doing good in the industry, outperforming 72.00% of the companies in the same industry.
• In the last couple of years the Gross Margin of BIRK has grown nicely.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for BIRK is 7:

BIRK has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 49.06, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of BIRK

Our latest full technical report of BIRK contains the most current technical analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.