Is BIRKENSTOCK HOLDING PLC (NYSE:BIRK) on the Verge of a Major Breakout as a Strong Growth Stock?

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether BIRKENSTOCK HOLDING PLC (NYSE:BIRK) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but BIRKENSTOCK HOLDING PLC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of BIRK, the assigned 9 reflects its growth potential:

• BIRK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 155.71%, which is quite impressive.
• Measured over the past years, BIRK shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.40% on average per year.
• Looking at the last year, BIRK shows a very strong growth in Revenue. The Revenue has grown by 20.96%.
• Measured over the past years, BIRK shows a very strong growth in Revenue. The Revenue has been growing by 23.33% on average per year.
• BIRK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.00% yearly.
• The Revenue is expected to grow by 17.55% on average over the next years. This is quite good.

Exploring BIRK's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. BIRK has earned a 5 out of 10:

• An Altman-Z score of 3.15 indicates that BIRK is not in any danger for bankruptcy at the moment.
• The Debt to FCF ratio of BIRK is 3.59, which is a good value as it means it would take BIRK, 3.59 years of fcf income to pay off all of its debts.
• A Debt/Equity ratio of 0.48 indicates that BIRK is not too dependend on debt financing.
• BIRK has a Current Ratio of 2.84. This indicates that BIRK is financially healthy and has no problem in meeting its short term obligations.
• BIRK's Current ratio of 2.84 is amongst the best of the industry. BIRK outperforms 82.00% of its industry peers.

Profitability Analysis for BIRK

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of BIRK, the assigned 7 is noteworthy for profitability:

• BIRK has a Return On Assets of 4.37%. This is in the better half of the industry: BIRK outperforms 66.00% of its industry peers.
• The Profit Margin of BIRK (11.75%) is better than 90.00% of its industry peers.
• In the last couple of years the Profit Margin of BIRK has grown nicely.
• BIRK's Operating Margin of 25.19% is amongst the best of the industry. BIRK outperforms 96.00% of its industry peers.
• In the last couple of years the Operating Margin of BIRK has grown nicely.
• BIRK has a Gross Margin of 58.70%. This is in the better half of the industry: BIRK outperforms 72.00% of its industry peers.
• BIRK's Gross Margin has improved in the last couple of years.

Why is BIRK a setup?

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. BIRK currently has a 8 as setup rating:

Although the technical rating is bad, BIRK does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 43.88, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BIRK in the last couple of days, which is a good sign.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of BIRK contains the most current fundamental analsysis.

Check the latest full technical report of BIRK for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.