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Birkenstock - AI Stock Analysis

Analysis generated June 24, 2024

Birkenstock, a historic footwear manufacturer, is renowned for its high-quality, comfortable sandals and shoes. With origins tracing back to the 18th century, the company has evolved into a global brand known for its commitment to sustainability and craftsmanship. Birkenstock has a diverse product range that includes several variations of its iconic sandals, as well as closed-toe shoes, each product designed to support healthy foot development and movement.

Fundamental Analysis

Birkenstock's revenue for the last quarter was $484 million, marking an impressive increase of 59.8% compared to the previous quarter and 185.99% from the same quarter last year. These figures indicate robust growth, showcasing the brand's increasing market demand and effective business strategies.

The net income for Birkenstock was $72 million, which is a substantial increase of 1,101.57% from the prior quarter and 416.12% year-over-year. Such significant growth in net income underscores the company’s profitability and operational efficiency.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the last quarter stood at $163 million, reflecting a rise of 131.45% quarter-over-quarter and 185.94% year-over-year. The growth in EBITDA is a positive indicator of Birkenstock’s strong earnings performance and its ability to generate cash flow.

The current Price to Earnings (P/E) ratio of Birkenstock is 50.94. While this high P/E ratio might suggest potential overvaluation, it could also reflect high investor expectations for the company's future growth prospects.

Technical Analysis

Birkenstock's stock price today is $61.47, up by 27.77% from a month ago, pointing to a positive short-term trend. Comparing to a year ago, the stock price has increased by 52.91%, indicating a favorable long-term trend. Overall, the trend is bullish.

The Simple Moving Average (SMA10) is currently at $60.67, which is slightly higher than the previous SMA10 of $60.49. This upward trend in SMA10 suggests potential positive momentum in Birkenstock's stock price.

The Relative Strength Index (RSI) is at 45.3, indicating a neutral condition. This suggests that the stock is neither overbought nor oversold at the moment, and could move in either direction depending on future market conditions.

Alternative Data Analysis

Regarding job postings and employee sentiment, Birkenstock has 116 open positions, down by 17% in the last couple of months. This decrease may indicate efforts to improve margins or cut costs, which might not be a great sign for a growing company as it could suggest a slowdown in expansion or hiring freeze.

On the customer acquisition front, there has been an estimated 11 million visitors to Birkenstock’s webpage, up by 89% in the last few months. This bullish trend suggests an increase in potential customers and heightened interest in the brand.

In terms of customer engagement, Birkenstock has 140,000 followers on Instagram, with an 18% increase in recent months, showing growing interest and improved brand visibility. However, their Twitter page has 10,000 followers with no significant change, indicating stable but stagnating engagement on this platform.

Additionally, AltIndex's AI score for Birkenstock is 71, which constitutes a buy signal. This AI score evaluates a company’s stock price based on fundamental, technical, and alternative data analysis, suggesting favorable prospects.

Conclusion

Based on the robust fundamental indicators such as revenue, net income, and EBITDA, Birkenstock demonstrates strong financial health and growth potential. The technical analysis also backs this up with positive price trends, although the high P/E ratio suggests caution. While the reduction in job postings is concerning, the significant increase in webpage visitors and Instagram followers outweighs this concern. The AI score of 71 provides an additional layer of confidence in the stock.

Overall, considering all data points, Birkenstock appears to be a solid investment opportunity with strong growth indicators. However, investors should keep an eye on hiring trends and P/E ratio for any signs of underlying issues.

Recommendation: Buy

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.