We assign a fundamental rating of 6 out of 10 to BIRK. BIRK was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. While BIRK has a great profitability rating, there are some minor concerns on its financial health. BIRK is growing strongly while it is still valued neutral. This is a good combination! With these ratings, BIRK could be worth investigating further for growth investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year BIRK was profitable.
In the past year BIRK had a positive cash flow from operations.
In the past 5 years BIRK has always been profitable.
In the past 5 years BIRK always reported a positive cash flow from operatings.

1.2 Ratios

BIRK's Return On Assets of 7.05% is amongst the best of the industry. BIRK outperforms 82.22% of its industry peers.
BIRK has a better Return On Equity (12.79%) than 71.11% of its industry peers.
The Return On Invested Capital of BIRK (8.59%) is better than 66.67% of its industry peers.

		Industry Rank	Sector Rank
ROA	7.05%
ROE	12.79%
ROIC	8.59%

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

BIRK's Profit Margin of 16.61% is amongst the best of the industry. BIRK outperforms 97.78% of its industry peers.
BIRK's Profit Margin has improved in the last couple of years.
The Operating Margin of BIRK (26.38%) is better than 100.00% of its industry peers.
BIRK's Operating Margin has improved in the last couple of years.
BIRK's Gross Margin of 59.18% is fine compared to the rest of the industry. BIRK outperforms 77.78% of its industry peers.
In the last couple of years the Gross Margin of BIRK has grown nicely.

		Industry Rank	Sector Rank
OM	26.38%
PM (TTM)	16.61%
GM	59.18%

OM growth 3Y1.25%

OM growth 5Y5.76%

PM growth 3Y3.33%

PM growth 5Y3.6%

GM growth 3Y-0.64%

GM growth 5Y1.51%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

BIRK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for BIRK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 2.94 indicates that BIRK is not a great score, but indicates only limited risk for bankruptcy at the moment.
BIRK has a Altman-Z score of 2.94. This is in the better half of the industry: BIRK outperforms 64.44% of its industry peers.
BIRK has a debt to FCF ratio of 4.37. This is a neutral value as BIRK would need 4.37 years to pay back of all of its debts.
BIRK's Debt to FCF ratio of 4.37 is fine compared to the rest of the industry. BIRK outperforms 62.22% of its industry peers.
BIRK has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
BIRK has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: BIRK outperforms 48.89% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.46
Debt/FCF	4.37
Altman-Z	2.94

ROIC/WACC0.95

WACC9.07%

2.3 Liquidity

A Current Ratio of 2.81 indicates that BIRK has no problem at all paying its short term obligations.
The Current ratio of BIRK (2.81) is better than 80.00% of its industry peers.
BIRK has a Quick Ratio of 1.26. This is a normal value and indicates that BIRK is financially healthy and should not expect problems in meeting its short term obligations.
BIRK has a better Quick ratio (1.26) than 66.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.81
Quick Ratio	1.26

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 45.31% over the past year.
BIRK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.17% yearly.
Looking at the last year, BIRK shows a quite strong growth in Revenue. The Revenue has grown by 16.22% in the last year.
Measured over the past years, BIRK shows a very strong growth in Revenue. The Revenue has been growing by 23.57% on average per year.

EPS 1Y (TTM)45.31%

EPS 3Y23.15%

EPS 5Y28.17%

EPS Q2Q%75.86%

Revenue 1Y (TTM)16.22%

Revenue growth 3Y19.06%

Revenue growth 5Y23.57%

Sales Q2Q%15.48%

3.2 Future

The Earnings Per Share is expected to grow by 10.15% on average over the next years. This is quite good.
BIRK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.05% yearly.

EPS Next Y11.18%

EPS Next 2Y15.51%

EPS Next 3Y15.38%

EPS Next 5Y10.15%

Revenue Next Year12.24%

Revenue Next 2Y13.42%

Revenue Next 3Y13.32%

Revenue Next 5Y11.05%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.46, which indicates a rather expensive current valuation of BIRK.
Based on the Price/Earnings ratio, BIRK is valued a bit cheaper than 66.67% of the companies in the same industry.
BIRK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 16.62, which indicates a correct valuation of BIRK.
BIRK's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.32. BIRK is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	18.46
Fwd PE	16.62

4.2 Price Multiples

BIRK's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BIRK indicates a somewhat cheap valuation: BIRK is cheaper than 66.67% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	21.12
EV/EBITDA	10.95

4.3 Compensation for Growth

BIRK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BIRK has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BIRK's earnings are expected to grow with 15.38% in the coming years.