BIRK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. BIRK scores excellent on profitability, but 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

BIRK had positive earnings in the past year.
In the past year BIRK had a positive cash flow from operations.
Each year in the past 5 years BIRK has been profitable.
BIRK had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of BIRK (7.05%) is better than 82.22% of its industry peers.
BIRK has a better Return On Equity (12.79%) than 71.11% of its industry peers.
With a decent Return On Invested Capital value of 8.59%, BIRK is doing good in the industry, outperforming 66.67% of the companies in the same industry.

		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

With an excellent Profit Margin value of 16.61%, BIRK belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of BIRK has grown nicely.
With a decent Gross Margin value of 59.18%, BIRK is doing good in the industry, outperforming 77.78% of the companies in the same industry.
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BIRK 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

BIRK has an Altman-Z score of 2.94. This is not the best score and indicates that BIRK is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of BIRK (2.94) is better than 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 has a Debt to FCF ratio of 4.37. This is in the better half of the industry: BIRK outperforms 62.22% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that BIRK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, BIRK is in line with its industry, outperforming 48.89% of the companies in the same industry.

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

ROIC/WACC0.95

WACC9.07%

2.3 Liquidity

BIRK has a Current Ratio of 2.81. This indicates that BIRK is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.81, BIRK is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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

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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.
The Earnings Per Share has been growing by 28.17% on average over the past years. This is a very strong growth
BIRK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.22%.
BIRK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.57% yearly.

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

BIRK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.15% yearly.
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

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.14, 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.
When comparing the Price/Earnings ratio of BIRK to the average of the S&P500 Index (27.21), we can say BIRK is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.34 indicates a correct valuation of BIRK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BIRK is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 24.26. BIRK is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	18.14
Fwd PE	16.34

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as BIRK.
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	20.76
EV/EBITDA	10.95

4.3 Compensation for Growth

The 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.
BIRK's earnings are expected to grow with 15.38% in the coming years. This may justify a more expensive valuation.