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. While BIRK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BIRK is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
BIRK had a positive operating cash flow in the past year.
BIRK had positive earnings in each of the past 5 years.
Each year in the past 5 years BIRK had a positive operating cash flow.

1.2 Ratios

BIRK has a better Return On Assets (7.05%) than 82.22% of its industry peers.
BIRK has a Return On Equity of 12.79%. This is in the better half of the industry: BIRK outperforms 71.11% of its industry peers.
BIRK has a better Return On Invested Capital (8.59%) 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 has a better Profit Margin (16.61%) than 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.
In the last couple of years the Operating Margin of BIRK has grown nicely.
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

BIRK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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

An Altman-Z score of 2.90 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 2.90. 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.
With a decent Debt to FCF ratio value of 4.37, BIRK is doing good in the industry, outperforming 62.22% of the companies in the same industry.
BIRK has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.46, BIRK perfoms like the industry average, outperforming 48.89% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.46
Debt/FCF	4.37
Altman-Z	2.9

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.
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.
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.
The Quick ratio of BIRK (1.26) is better 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
Looking at the last year, BIRK shows a quite strong growth in Revenue. The Revenue has grown by 16.22% in the last year.
The Revenue has been growing by 23.57% on average over the past years. This is a very strong growth!

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.
The Revenue is expected to grow by 11.05% on average over the next years. This is quite good.

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

A Price/Earnings ratio of 18.14 indicates a rather expensive valuation of BIRK.
66.67% of the companies in the same industry are more expensive than BIRK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.21, BIRK is valued a bit cheaper.
BIRK is valuated correctly with a Price/Forward Earnings ratio of 16.29.
The rest of the industry has a similar Price/Forward Earnings ratio as BIRK.
BIRK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	18.14
Fwd PE	16.29

4.2 Price Multiples

BIRK's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, BIRK is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	20.69
EV/EBITDA	10.76

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.