Buffett Brain · Research note
Score updated 24 Oct 2026
BIRK· Consumer Discretionary
Birkenstock
Birkenstock's strong margins contrast with weak ROIC, suggesting a brand moat but limited reinvestment efficiency.
Buffett fit
Partial fit
Owner
43
Durability
70
Management
48
Price
57
Score updated 24 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Birkenstock would mean focusing on leveraging its brand strength to maintain high margins.
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In 10 years, Birkenstock's durability hinges on maintaining its brand appeal and .
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Management's appears conservative, with a share count CAGR of 0.51% and minimal .
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At a of 16.4 and an yield of 4.0%, the valuation is not compelling.
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- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 158.3% is top-quintile in the sector, indicating strong brand .
- 2 of 26.4% is well above the sector's 14.9% top-quintile cutoff.
- 3Net margin of 17.7% is top-quintile, reflecting efficient cost management.
- 4Revenue CAGR of 21.51% over 5 years suggests strong growth potential.
Concerns
5- 1 of 9.3% is below the sector's top-quintile threshold of 13.7%, indicating reinvestment inefficiencies.
- 25-year average of 4.5% is concerning for long-term value creation.
- 3EPS max decline of 63.72% in 5 years raises questions about earnings stability.
- 4 yield of 4.0% is below the desired 8-10% threshold.
Price history
$32.57-10.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Birkenstock manufactures and sells footwear, primarily sandals and shoes, through e-commerce and retail channels worldwide. The company achieved $2.1B in revenue with a net income of $348.33M, indicating strong profitability. at 58.3% suggest a typical of a strong brand. The unit economics appear solid, but the low of 9.3% implies inefficiencies in reinvestment.
What other investors would say
The same company, judged by three other documented playbooks.
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