Birkenstock Holding's ROCE: A Growth Story You Can't Ignore!

Ladies and gentlemen, listen up! We've got a story to tell about Birkenstock Holding (NYSE:BIRK), and it's all about growth, growth, growth! Specifically, we're talking about their Return on Capital Employed (ROCE), a metric that's been on a rollercoaster ride but is now showing signs of life. Let's dive in and see why investors should be paying attention.

First things first, what is ROCE? It's a measure of how well a company generates cash flow relative to the capital it has invested in its business. Think of it as the engine that drives a company's growth. If the engine is humming, the company is making money. If it's sputtering, well, you get the picture.

Now, let's talk about Birkenstock Holding's ROCE. As of March 22, 2025, their ROCE is 7.08%, calculated using Trailing Twelve Months (TTM) income statement data. That's not bad, but it's still below their Weighted Average Cost of Capital (WACC) of 9.56%. This means they're not quite generating returns that match up to their cost of capital, but don't count them out just yet.



Let's take a look at their historical ROCE data. It's been a wild ride, folks! From a low of -3.47% in September 2020 to a high of 66.39% in September 2020, it's been all over the map. But the trend is your friend, and Birkenstock Holding's ROCE has been trending upwards. In the quarter that ended in December 2024, their ROCE was 3.45%, up from 6.04% in the previous quarter. That's a positive sign, and it's something investors should be paying attention to.

So, what's driving Birkenstock Holding's ROCE? It's all about operating income, tax rate, and invested capital. Their operating income for the fiscal year that ended in September 2024 was 489.149 million USD, with a tax rate of 34.78% and an average invested capital of 4688.288 million USD. That's a lot of numbers, but the bottom line is that they're generating a return on their invested capital that's below their WACC. But remember, growth is growth, and Birkenstock Holding is showing signs of life.

Now, let's compare Birkenstock Holding to their competitors in the footwear and accessories industry. Skechers U.S.A, Crocs, On Holding, and Deckers Outdoor are all bigger players with larger market caps. While we don't have their specific ROCE data, we can infer that they're likely generating higher returns on their invested capital. But that's not the point. The point is that Birkenstock Holding is a growth story, and their ROCE is trending in the right direction.



So, what's the takeaway? Birkenstock Holding's ROCE is a growth story you can't ignore. They're showing signs of life, and their ROCE is trending in the right direction. It's not a no-brainer, but it's worth keeping an eye on. And remember, growth is growth, and Birkenstock Holding is a growth story. So, do your homework, stay informed, and don't miss out on this opportunity. BOO-YAH!