Birkenstock Holding plc
Birkenstock Holding plc Fundamental Analysis
Birkenstock Holding plc (BIRK) shows moderate financial fundamentals with a PE ratio of 16.21, profit margin of 17.72%, and ROE of 13.87%. The company generates $2.1B in annual revenue with strong year-over-year growth of 16.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BIRK's fundamental strength across five key dimensions:
Efficiency Score
WeakBIRK struggles to generate sufficient returns from assets.
Valuation Score
ModerateBIRK shows balanced valuation metrics.
Growth Score
ModerateBIRK shows steady but slowing expansion.
Financial Health Score
ExcellentBIRK maintains a strong and stable balance sheet.
Profitability Score
ModerateBIRK maintains healthy but balanced margins.
Key Financial Metrics
Is BIRK Expensive or Cheap?
P/E Ratio
BIRK trades at 16.21 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BIRK's PEG of 2.23 indicates potential overvaluation.
Price to Book
The market values Birkenstock Holding plc at 2.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.25 times EBITDA. This is generally considered low.
How Well Does BIRK Make Money?
Net Profit Margin
For every $100 in sales, Birkenstock Holding plc keeps $17.72 as profit after all expenses.
Operating Margin
Core operations generate 26.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.87 in profit for every $100 of shareholder equity.
ROA
Birkenstock Holding plc generates $7.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Birkenstock Holding plc produces operating cash flow of $379.76M, showing steady but balanced cash generation.
Free Cash Flow
Birkenstock Holding plc generates strong free cash flow of $276.49M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.50 in free cash annually.
FCF Yield
BIRK converts 4.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How BIRK Stacks Against Its Sector Peers
| Metric | BIRK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.21 | 24.85 | Better (Cheaper) |
| ROE | 13.87% | 1165.00% | Weak |
| Net Margin | 17.72% | 752.00% | Weak |
| Debt/Equity | 0.49 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 3.13 | 9.23 | Strong Liquidity |
| ROA | 7.65% | 1280.00% | Weak |
BIRK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Birkenstock Holding plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
189.93%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
430.33%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
94.14%
Industry Style: Cyclical, Growth, Discretionary
High Growth