Overall BIRK gets a fundamental rating of 6 out of 10. We evaluated BIRK against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. BIRK has an excellent profitability rating, but there are some minor concerns on its financial health. BIRK is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes BIRK very considerable 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.
Each year in the past 5 years BIRK has been profitable.
Each year in the past 5 years BIRK had a positive operating cash flow.

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's Return On Equity of 12.79% is fine compared to the rest of the industry. BIRK outperforms 71.11% of its industry peers.
BIRK's Return On Invested Capital of 8.59% is fine compared to the rest of the industry. BIRK outperforms 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 has a better Profit Margin (16.61%) than 97.78% of its industry peers.
In the last couple of years the Profit Margin of BIRK has grown nicely.
Looking at the Operating Margin, with a value of 26.38%, BIRK belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
BIRK's Operating Margin has improved in the last couple of years.
The Gross Margin of BIRK (59.18%) is better than 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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BIRK is destroying value.
BIRK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

BIRK has an Altman-Z score of 2.83. 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.
Looking at the Altman-Z score, with a value of 2.83, BIRK is in the better half of the industry, outperforming 64.44% of the companies in the same industry.
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 better Debt to FCF ratio (4.37) than 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	2.83

ROIC/WACC0.95

WACC9.06%

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.
Looking at the Current ratio, with a value of 2.81, BIRK is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that BIRK should not have too much problems paying 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.
Measured over the past years, BIRK shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.17% on average per year.
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

Based on estimates for the next years, BIRK will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.15% on average per year.
Based on estimates for the next years, BIRK will show a quite strong growth in Revenue. The Revenue will grow by 11.05% on average per year.

EPS Next Y11.18%

EPS Next 2Y15.51%

EPS Next 3Y15.38%

EPS Next 5Y10.15%

Revenue Next Year12.19%

Revenue Next 2Y13.24%

Revenue Next 3Y13.08%

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.
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

Based on the Price/Earnings ratio of 16.92, the valuation of BIRK can be described as correct.
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 28.60.
BIRK is valuated correctly with a Price/Forward Earnings ratio of 15.23.
BIRK's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BIRK to the average of the S&P500 Index (25.83), we can say BIRK is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	16.92
Fwd PE	15.23

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	19.35
EV/EBITDA	10.35

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.