Taking everything into account, BIRK scores 6 out of 10 in our fundamental rating. BIRK was compared to 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make BIRK suitable 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.
In the past 5 years BIRK always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 7.05%, BIRK belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
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

The Profit Margin of BIRK (16.61%) is better than 97.78% of its industry peers.
In the last couple of years the Profit Margin of BIRK has grown nicely.
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.
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.
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 2.94 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.
The Debt to FCF ratio of BIRK is 4.37, which is a neutral value as it means it would take BIRK, 4.37 years of fcf income to pay off 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's Debt to Equity ratio of 0.46 is in line compared 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.
A Quick Ratio of 1.26 indicates that BIRK should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.26, BIRK is doing good in the industry, outperforming 66.67% of the companies in the same industry.

		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.
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

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.
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

BIRK is valuated rather expensively with a Price/Earnings ratio of 18.14.
Compared to the rest of the industry, the Price/Earnings ratio of BIRK indicates a somewhat cheap valuation: BIRK is cheaper than 66.67% of the companies listed in the same industry.
BIRK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
BIRK is valuated correctly with a Price/Forward Earnings ratio of 16.34.
BIRK's Price/Forward Earnings ratio is in line with the industry average.
BIRK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	18.14
Fwd PE	16.34

4.2 Price Multiples

BIRK's Enterprise Value to EBITDA ratio is in line with the industry average.
BIRK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BIRK is cheaper than 66.67% of the companies 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.
A more expensive valuation may be justified as BIRK's earnings are expected to grow with 15.38% in the coming years.