Birkenstock Holding plc (BIRK) AI Stock Analysis

• Market Cap: $7.34B
• Dividend Yield: N/A
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.11
• Revenue Growth: 18.66%
• EPS Growth: 183.98%
• Country: US
• Employees: 6,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.72
• Shares Outstanding: 183,906,050
• 10 Day Avg. Volume: 1,613,331
• 30 Day Avg. Volume: 2,254,294
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 5.16
• Enterprise Value/Gross Profit: 8.71
• Enterprise Value/Ebitda: 16.69
• 1Y Price Target: $68.35
• Price Target Upside: 71.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: $47.00 ▲(17.76% Upside)

Birkenstock's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. However, bearish technical indicators and moderate valuation temper the overall outlook. Continued focus on addressing cash flow concerns and leveraging growth opportunities could enhance the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing the company's competitive position.

APAC Expansion

Strong growth in APAC suggests successful regional strategies and potential for further market penetration, supporting long-term revenue expansion.

Strategic Acquisition

Acquiring the Australian distributor enhances market presence and operational control in APAC, aligning with strategic growth objectives.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth could limit investment capacity and operational flexibility, impacting long-term financial stability.

FX Impact

Currency fluctuations pose a risk to revenue and margin stability, potentially affecting profitability and financial forecasts.

Capacity Constraints

Production capacity limitations can hinder ability to meet demand, affecting revenue growth and customer satisfaction in key markets.

Birkenstock Holding plc Business Overview & Revenue Model

Company Description

Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.

How the Company Makes Money

Birkenstock generates revenue primarily through the sale of its footwear products, which are distributed through various channels including retail stores, e-commerce platforms, and wholesale partnerships with third-party retailers. Key revenue streams include direct-to-consumer sales from their own branded stores and online platforms, as well as sales through licensed retailers worldwide. The company also benefits from seasonal collections and collaborations with fashion brands that enhance brand visibility and attract new customer segments. Additionally, the growing trend of comfort-oriented lifestyle products has contributed to increased demand for Birkenstock's offerings, solidifying its position in the market.

Birkenstock Holding plc Financial Statement Overview

Summary

Birkenstock Holding plc demonstrates strong financial performance with consistent revenue and profit growth, efficient cost management, and a stable balance sheet. The recent decline in free cash flow growth warrants attention, but overall financial health remains robust, supported by solid profitability and moderate leverage.

Income Statement

Birkenstock Holding plc has shown strong revenue growth with a TTM increase of 3.59% and consistent improvement in profitability margins. The gross profit margin is robust at 58.99%, and the net profit margin has improved to 12.90% in the TTM. EBIT and EBITDA margins have also increased, indicating efficient cost management and operational strength. The company has demonstrated a positive growth trajectory, enhancing its financial stability.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.50, indicating moderate leverage. Return on equity has improved to 9.34%, showcasing effective utilization of equity capital. The equity ratio stands at 53.63%, suggesting a solid equity base relative to total assets. Overall, the balance sheet indicates stability, though there is room for further improvement in leverage management.

Cash Flow

Cash flow analysis shows a slight decline in free cash flow growth at -7.71% in the TTM, which could be a concern. However, the operating cash flow to net income ratio remains strong at 0.96, and the free cash flow to net income ratio is healthy at 0.81. Despite the recent dip in free cash flow growth, the company maintains a solid cash flow position, supporting its operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.03B	1.80B	1.49B	1.24B	962.13M	728.55M
Gross Profit	1.20B	1.06B	925.79M	749.80M	545.65M	260.28M
EBITDA	627.01M	503.67M	360.35M	423.14M	230.25M	3.35M
Net Income	306.93M	191.60M	75.02M	187.11M	116.44M	-106.19M
Balance Sheet
Total Assets	4.91B	4.88B	4.83B	4.79B	4.27B	803.56M
Cash, Cash Equivalents and Short-Term Investments	261.83M	376.46M	354.06M	307.08M	235.34M	96.18M
Total Debt	1.37B	1.35B	1.98B	2.04B	1.89B	220.43M
Total Liabilities	2.27B	2.26B	2.43B	2.43B	2.20B	395.39M
Stockholders Equity	2.63B	2.63B	2.40B	2.36B	2.06B	398.16M
Cash Flow
Free Cash Flow	295.14M	354.80M	255.79M	161.54M	159.65M	171.26M
Operating Cash Flow	373.32M	428.70M	358.73M	234.14M	180.93M	193.60M
Investing Cash Flow	-72.48M	-58.80M	-100.73M	-71.65M	-18.15M	-3.50M
Financing Cash Flow	-439.23M	-355.05M	-199.28M	-105.32M	-84.74M	-130.25M

Birkenstock Holding plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIRK, the sentiment is Negative. The current price of 39.91 is below the 20-day moving average (MA) of 42.41, below the 50-day MA of 45.76, and below the 200-day MA of 49.76, indicating a bearish trend. The MACD of -1.40 indicates Positive momentum. The RSI at 28.90 is Positive, neither overbought nor oversold. The STOCH value of 9.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIRK.

Birkenstock Holding plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHOO	―	$2.46B	26.68	11.09%	2.48%	7.80%	-48.10%
DECK	―	$12.09B	12.09	43.31%	―	12.55%	18.43%
BIRK	―	$7.34B	22.22	11.36%	―	18.66%	183.98%
CROX	―	$4.24B	26.64	11.82%	―	<0.01%	-77.31%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	―	$1.84B	21.93	27.52%	1.72%	-2.83%	―

Birkenstock Holding plc Corporate Events

Birkenstock Acquires Australian Distributor to Boost APAC Growth

On October 15, 2025, Birkenstock Holding plc announced the acquisition of its long-standing distributor, Birkenstock Australia Pty. Ltd., aiming to ensure a seamless transition and unlock growth potential in the Australian market. This strategic move, involving investment in the business, is expected to enhance Birkenstock’s market presence in the APAC region and support the company’s growth strategy by leveraging the established distribution network and strong brand reputation in Australia.

Birkenstock Exceeds Revenue Expectations and Expands Manufacturing with New Acquisition

On September 25, 2025, Birkenstock Holding plc announced its fiscal year 2025 revenues are expected to reach at least €2.09 billion, surpassing previous guidance. The company also reaffirmed its adjusted EBITDA guidance despite currency headwinds. Additionally, Birkenstock acquired a production facility near Dresden, Germany, for €18 million, which will enhance its manufacturing capacity and support revenue growth. This acquisition, expected to close by the fiscal first quarter of 2026, is part of Birkenstock’s strategy to expand its operations in the European Union.

Birkenstock Releases Interim Financial Results for June 2025

Birkenstock Holding plc released its unaudited interim condensed consolidated financial statements for the period ending June 30, 2025. The financial results indicate a stable asset position with slight changes in goodwill and intangible assets compared to the previous year. The company reported an increase in current assets, particularly in inventories and trade receivables, suggesting a potential expansion in operations or market demand. The financial data reflects Birkenstock’s ongoing commitment to maintaining a robust financial structure, which is crucial for its competitive positioning in the footwear industry.

Birkenstock Reports Strong Q3 2025 Results with 16% Revenue Growth

On August 14, 2025, Birkenstock Holding plc reported its fiscal third quarter 2025 financial results, showing a 12% increase in revenue compared to the previous year, with a 16% rise on a constant currency basis. The company achieved significant margin improvements despite currency challenges, with a gross profit margin of 60.5% and an adjusted EBITDA margin of 34.4%. Revenue growth was driven by strong demand across all segments and regions, with notable performance in the APAC region. Birkenstock reaffirmed its fiscal 2025 targets, expecting revenue growth at the high-end of its 15-17% guidance range and adjusted EBITDA margin between 31.3-31.8%. The company also invested in expanding production capacity and repurchased 3.9 million shares, reflecting its commitment to enhancing shareholder value.