Birks Group Inc. (BGI) Stock Analysis and Metrics

Sector: Consumer Cyclical Industry: Luxury Goods CIK: 0001179821

Market Cap 16.00 Mn

P/B -0.78

P/E -1.30

P/S 0.08

ROIC (Qtr) 0.00

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 166.97 Mn

Debt/Equity (Qtr) -8.13

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About

Birks Group Inc., often recognized by its ticker symbol BGI, is a prominent player in the luxury goods industry, specializing in the retail of high-end timepieces and fine jewelry. The company's operations span the global market, with a diverse range of products from renowned brands and its own in-house labels. Birks Group Inc.'s business activities revolve around the sale of luxury watches and jewelry. The company operates in three primary segments: the Watch Segment, the Jewelry Segment, and the Other Segment. The Watch Segment offers a wide...

Birks Group Inc., often recognized by its ticker symbol BGI, is a prominent player in the luxury goods industry, specializing in the retail of high-end timepieces and fine jewelry. The company's operations span the global market, with a diverse range of products from renowned brands and its own in-house labels.

Birks Group Inc.'s business activities revolve around the sale of luxury watches and jewelry. The company operates in three primary segments: the Watch Segment, the Jewelry Segment, and the Other Segment. The Watch Segment offers a wide array of luxury watches from prestigious brands such as Rolex, Omega, and Cartier. These watches are celebrated for their superior craftsmanship, precision, and style. The segment caters to a discerning clientele who value quality and are willing to invest in high-end timepieces.

The Jewelry Segment is another significant contributor to Birks Group Inc.'s revenue. This segment offers a broad range of fine jewelry, including diamond and gemstone pieces, as well as high-end accessories. The jewelry products are designed to appeal to customers who appreciate luxury and exclusivity. The segment caters to customers seeking unique and high-quality pieces that reflect their personal style.

The Other Segment includes revenue generated from the sale of luxury items like pens, cufflinks, and other accessories. This segment caters to customers who seek exclusive and high-quality products that complement their luxury lifestyle.

Birks Group Inc. competes in a highly competitive industry, facing key competitors such as Watches of Switzerland, Tourneau, and Tiffany & Co. The company's competitive advantages include its extensive network of stores, strong relationships with renowned brands, and expertise in watchmaking and jewelry design. These advantages enable Birks Group Inc. to offer a unique and exclusive shopping experience to its customers.

The company's customer base is diverse, with affluent individuals, collectors, and connoisseurs from various regions and countries. Birks Group Inc.'s ability to cater to a broad customer base and offer a wide range of products enables it to maintain a strong position in the luxury goods industry.

The products offered by Birks Group Inc. are a testament to its commitment to luxury and quality. The company's own brands include Brink's, Mayors, and Birks, offering a range of Swiss-made watches, fine jewelry, and other luxury items. These brands are recognized for their exceptional quality and design, reflecting the company's dedication to providing the best to its customers.

Investment thesis

Bull case

Tangible assets of 209.79M provide robust 28.01x coverage of other current liabilities 7.49M, indicating strong asset backing.
Retained earnings of (140.85M) represent substantial 6.86x of equity (20.54M), indicating strong internal capital generation.
Cash reserves of 2.17M provide solid 0.94x coverage of other non-current liabilities 2.32M, indicating strong liquidity.
Strong tangible asset base of 209.79M provides 61.67x coverage of intangibles 3.40M, indicating robust asset quality.
Tangible assets of 209.79M provide robust 29.36x coverage of receivables 7.15M, showing strong asset quality.

Bear case

With cash reserves of 2.17M against inventory of 123.46M, the 0.02 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
Cash position of 2.17M provides weak coverage of payables of 56.95M, which is 0.04x, indicating potential working capital stress and supplier relationship risks.
Tangible assets of 209.79M provide limited backing for working capital of (18.80M), which is -11.16x, suggesting increased operational risk in market downturns.
Operating cash flow of 0 barely covers operating expenses of 12.31M with a 0 ratio, suggesting thin operational efficiency margins and limited flexibility.
R&D investment of 0 represents just 0x of SG&A expenses of 64.65M, indicating potential underinvestment in innovation relative to administrative overhead.

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Luxury Goods

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	TPR	Tapestry, Inc.	29.76 Bn	56.98	3.96	3.94 Bn
2	SIG	Signet Jewelers Ltd	4.18 Bn	28.80	0.61	1.15 Bn
3	CPRI	Capri Holdings Ltd	2.40 Bn	-4.76	0.65	1.31 Bn
4	REAL	TheRealReal, Inc.	1.22 Bn	-17.03	1.84	0.47 Bn
5	LUXE	LuxExperience B.V.	0.92 Bn	1.60	0.38	0.22 Bn
6	MOV	Movado Group Inc	0.88 Bn	1,242.00	1.44	0.08 Bn
7	ELA	Envela Corp	0.34 Bn	33.05	1.61	0.02 Bn
8	LANV	Lanvin Group Holdings Ltd	0.18 Bn	-0.84	0.52	-

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	0.75	1.99
EV to Cash from Ops. EV/CFO	-83.64	-20.65
EV to Debt EV to Debt	0.96	5.26
EV to EBIT EV/EBIT	-54.69	-18.61
EV to EBITDA EV/EBITDA	72.76	3.85
EV to Free Cash Flow [EV/FCF] EV/FCF	-17.93	-11.08
EV to Market Cap EV to Market Cap	9.99	2.01
EV to Revenue EV/Rev	0.84	1.66
Price to Book Value [P/B] P/B	-0.78	8.26
Price to Earnings [P/E] P/E	-1.30	103.89

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Dividend Coverage Ratio	0.00	0.46
Dividend Payout Ratio % Div Payout % (Qtr)	0.00	-92.20
Dividend per Basic Share Div per Share (Qtr)	0.00	0.37
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	0.00	13.15
Interest Coverage Int. cover (Qtr)	-0.31	65.47

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	0.00	19.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	21.41	324.42
Dividend Growth (1y) % Dividend Growth (1y) %	0.00	-2.57
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	-218.81	113.88
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	0.00	358.60
EBIT Growth (1y) % EBIT 1y % (Qtr)	-218.81	105.68
EBT Growth (1y) % EBT 1y % (Qtr)	-97.37	83.10
EPS Growth (1y) % EPS 1y % (Qtr)	-96.88	121.00
FCF Growth (1y) % FCF 1y % (Qtr)	0.00	-35.68
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	4.03	16.54

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	0.89	1.29
Cash Payout Ratio Cash Payout Ratio	0.00	0.10
Cash Ratio Cash Ratio (Qtr)	0.01	0.83
Current Ratio Curr Ratio (Qtr)	0.88	2.29
Debt to Equity Ratio Debt/Equity (Qtr)	-8.13	1.37
Interest Cover Ratio Int Coverage (Qtr)	-0.31	65.47
Times Interest Earned Times Interest Earned (Qtr)	-0.31	65.47

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	0.00	2.90
EBIT Margin % EBIT Margin % (Qtr)	-1.53	-0.51
EBT Margin % EBT Margin % (Qtr)	-6.44	-2.94
Gross Margin % Gross Margin % (Qtr)	37.50	48.43
Net Profit Margin % Net Margin % (Qtr)	-6.40	-4.98

Research Tools

Birks Group Inc. (NYSE: BGI)

About

Investment thesis

Bull case

Bear case

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Industry comparisons

Research Tools

Birks Group Inc. (NYSE: BGI)

About

Investment thesis

Bull case

Bear case

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Industry comparisons

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