Investors looking for growth chances at fair prices often use screening methods that find companies with good expansion possibilities while keeping strong financial basics. The "Affordable Growth" method focuses on stocks showing good growth paths, firm profitability, and positive financial numbers without requiring high prices. This system mixes the search for expansion with careful price judgment, trying to find companies set for continued results without paying too much for future outlooks.
Growth Path
BIRKENSTOCK HOLDING PLC (NYSE:BIRK) shows positive growth features that match affordable growth investment rules. The company's past results show large expansion, and future signs point to ongoing speed. For investors focused on growth, these numbers give trust in the company's skill to provide more value as time passes.
Important growth measures contain:
- Earnings Per Share growth of 45.13% over the last year
- Five-year average EPS growth rate of 32.40% each year
- Revenue increase of 17.60% in the latest year
- Estimated yearly EPS growth of 26.48% for future years
- Expected revenue growth of 15.69% yearly going forward
Price Evaluation
The company's price numbers give a fair view that backs the affordable growth idea. While some common measures point to higher costs, growth-related prices and future multiples show a sensible placement. This mix between current price and growth hopes is the center of the affordable growth plan, making sure investors do not pay too much for what may come.
Price points of interest:
- P/E ratio of 22.09, similar to industry friends
- Forward P/E of 16.97, less than S&P 500 average of 22.92
- Positive PEG ratio showing growth-balanced price
- Price/Free Cash Flow ratio good compared to industry friends
- Enterprise Value/EBITDA matching sector averages
Profitability Force
BIRKENSTOCK's profitability picture supports its appeal as an affordable growth choice. High margins and steady returns show the company's skill to change growth into final-line outcomes. For affordable growth investors, strong profitability makes sure that expansion turns into shareholder value instead of only top-line growth.
Profitability numbers to see:
- Operating margin of 26.30%, doing better than all industry friends
- Profit margin of 15.14%, beating 95% of rivals
- Return on Assets of 6.25%, more than industry middle point
- Return on Equity of 11.66%, showing good use of money
- Steady positive cash flow production over five years
Financial State Points
The company's financial state gives a varied but workable picture. While some safety numbers show parts to watch, general cash position stays strong. For affordable growth investors, enough financial health makes sure the company can keep its growth plans without too much money risk.
State check facts:
- Current ratio of 2.78, showing strong short-term cash position
- Quick ratio of 1.29, giving working bendability
- Debt/Equity ratio of 0.50, showing balanced money setup
- Altman-Z score of 2.98, inside okay span
- Better debt handling compared to the year before
Investment Points
BIRKENSTOCK's mix of strong growth, fair price, very good profitability, and enough financial health places it as a positive pick for affordable growth plans. The company's straight combination and worldwide brand standing give competitive edges that support continued expansion. While the absence of dividend payments may turn away income-focused investors, this often means profits are put back in to support future growth.
The full fundamental analysis report gives more detailed looks into these numbers and what they mean for long-term results. Investors should think about how the company's growth path fits with their investment time view and risk comfort.
For investors looking for like chances, other affordable growth choices can be found through our special screening tool, which finds companies meeting these balanced basic rules.
Disclaimer: This study shows a review of basic numbers using on-hand information and should not be taken as investment guidance. Investors should do their own checking and think about their personal money situations before making investment choices. Past results do not promise future outcomes, and all investments carry built-in risks.
