Birkenstock Holding plc (BIRK)

Price$34.00Cached quoteAs of 2026-09-05 14:55 UTC

AI: Undervalued

Price checkThe shares look modestly undervalued because strong growth is priced at only a mid-teens earnings multiple.

Using the latest verified close and the same-day dollar-to-euro rate, Birkenstock trades at about 16.5 times fiscal 2025 reported earnings of €1.87 per share. Management’s fiscal 2026 adjusted earnings guidance of €1.90–€2.05 implies roughly 15–16 times earnings. That is not bargain-bin pricing, but it looks restrained for a business now guiding 15% constant-currency revenue growth and very high operating profitability. Higher leverage and recent margin pressure justify some discount, so the undervaluation looks moderate rather than extreme.

Big pictureSales and profits have compounded quickly, while cash generation remains positive but less smooth than earnings.

Fiscal 2025 revenue rose 16% to €2.10 billion, operating income rose 31% to €550 million, and net income jumped 82% to €348 million. Operating cash flow was €384 million; subtracting €77 million of capital spending leaves about €308 million of free cash flow, meaning cash left after running and investing in the business. That was below about €363 million in fiscal 2024, mainly reflecting working-capital and tax timing. Quarterly cash flow is seasonal—first-quarter 2026 was negative—so full-year conversion matters more than one quarter.

Business strengthHigh margins and global growth show brand strength, though debt-funded buybacks reduce financial flexibility.

Fiscal 2025 gross margin was 59.1%, while adjusted earnings before interest, tax, depreciation and amortization—a common operating-profit measure—reached a 31.8% margin. Third-quarter 2026 revenue still grew by double digits in the Americas, Europe and Asia-Pacific. The financial cushion has narrowed, however: net debt rose to €1.23 billion by June 2026, equal to 1.8 times the last year’s adjusted operating measure. Birkenstock cancelled about 6.0 million shares in June and another 12.8 million in August, reducing share count but partly using fresh borrowing.

What could change the storySustained mid-teens growth would make the shares cheap, while weaker margins or debt-funded buybacks could erase that advantage.

The bull case is continued brand-led growth: fiscal 2026 revenue is now guided to rise 15% at constant currency, direct-to-consumer sales accelerated, and management expects at least €710 million of adjusted earnings before interest, tax, depreciation and amortization. The bear case is visible too: third-quarter gross margin fell 1.3 percentage points as tariffs and currency moves each hurt profitability, while debt rose. The current valuation works if growth stays around low double digits and margins remain near 30%; repeated sub-10% growth or further leverage increases would weaken the case.

AI: News

Guidance raised after strong quarterBirkenstock raised its annual growth outlook after strong third-quarter demand, reinforcing confidence in the brand’s momentum.

On August 13, Birkenstock raised fiscal 2026 constant-currency revenue growth guidance to 15% and increased its adjusted operating-profit proxy to at least €710 million. Third-quarter revenue reached €720 million, up 13% reported and 15% at constant currency, while direct-to-consumer sales grew 16% at constant currency. Reuters reported the shares jumped about 15% after the release. That reaction is consistent with stronger expectations, although several earnings and guidance items arrived together.

Large shareholder saleA large shareholder sale increased public supply, while Birkenstock simultaneously retired a meaningful block of shares.

On August 17, the L Catterton-linked selling shareholder completed a 28.1 million-share secondary transaction. About 15.4 million shares went to public investors, while Birkenstock repurchased and cancelled about 12.8 million shares for roughly $500 million. The company issued no new shares, so the transaction was not dilutive. The stock fell about 4% that session; the timing suggests the large block may have weighed on trading, but price timing alone cannot prove that cause.

Debt funds more buybacksBirkenstock refinanced at a lower coupon and borrowed extra cash to support aggressive share repurchases.

On June 16, Birkenstock priced €900 million of 4.5% senior bonds due 2033. Part of the proceeds redeemed €428.5 million of older 5.25% bonds, while additional cash was retained for potential repurchases of up to $500 million. By June 30, cash had risen to €694 million, but net debt was €1.23 billion and debt after cash equaled about 1.8 times the last year’s adjusted operating measure. The lower coupon helps, but the larger debt load raises downside risk if repurchases earn poor returns.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	€2.10B	€1.80B	€1.49B	€1.24B
Gross profit	€1.24B	€1.06B	€925.8M	€749.8M
Gross margin	59.11%	58.77%	62.05%	60.33%
Operating expenses	€690.2M	€639.6M	€665.1M	€386.8M
Operating income	€549.5M	€421.1M	€260.7M	€363.0M
Operating margin	26.20%	23.33%	17.47%	29.21%
EBITDA	€663.1M	€522.4M	€344.1M	€444.3M
EBITDA margin	31.61%	28.95%	23.06%	35.75%
Net income	€348.3M	€191.6M	€75.0M	€187.1M
Net profit margin	16.61%	10.62%	5.03%	15.06%
Basic EPSper basic share	€1.87	€1.02	€0.41	€1.02
Diluted EPSper diluted share	€1.87	€1.02	€0.41	€1.02

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of BIRK
Holder	Shares held
Chu James Michael	99.42M
Catterton Management Company, L.L.C.	99.42M
BAMCO INC /NY/	14.74M
T. Rowe Price Investment Management, Inc.	9.28M
DIMENSIONAL FUND ADVISORS LP	4.65M
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	4.13M
WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC	2.87M
FMR LLC	2.79M
UBS Group AG	2.69M
NORGES BANK	2.18M
MORGAN STANLEY	2.15M
WESTFIELD CAPITAL MANAGEMENT CO LP	1.97M
GOLDMAN SACHS GROUP INC	1.66M
Swedbank AB	1.6M
AMERICAN CENTURY COMPANIES INC	1.39M
Reichert Oliver	1.36M
BANK OF AMERICA CORP /DE/	1.15M
Lunate Capital Ltd	1.01M
Anomaly Capital Management, LP	936.37K
PRIMECAP MANAGEMENT CO/CA/	910.1K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 3 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)2$3.83M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 8, 2026Form 4	Bouyakhf Mehdi NicoPresident EMEA	SellOrdinary Shares	30.0K	$43.50	$1.30M	31.2K
Jun 5, 2026Form 4	Bouyakhf Mehdi NicoPresident EMEA	SellOrdinary Shares	60.0K	$42.07	$2.52M	61.2K

Review ownership filings at SEC.gov ↗

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Birkenstock Holding plc (BIRK)

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