BIRKBirkenstock Holding plc
Is the business good?
The checks split: mostly cash-backed earnings (0.9×) and margins steady.
Operating profit is mostly backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 12% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BIRK?
Birkenstock Holding plc earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.1 points above what the capital costs: growth creates value
- Operating margin
- 26%
Operating margin · Footwear & Accessories median 8.8% · 12 months to Q1 2026
- Cash conversion
- 0.86×
Cash conversion · 1.57× a year ago · most of the operating profit arrived as cash, working capital took the rest
- Share count, year on year
- −2.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2022 | 29% |
| FY2023 | 17% |
| FY2024 | 23% |
| FY2025 | 26% |
Details›
- Gross margin12 months to Q1 2026
- 58%
- Operating margin12 months to Q1 2026
- 26%
- Net margin12 months to Q1 2026
- 18%
- Free cash flow margin
- 13%
- Revenue, trailing twelve months
- $2.14B
- Free cash flow, trailing twelve months
- $268M
- Net income, trailing twelve months
- $379M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Footwear & Accessories
Ranks #3 of 9 by RyuScore