Birks Net Income vs. Return On Equity

BGI Stock  USD 1.61  0.03  1.90%   
Based on Birks' profitability indicators, Birks' profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Birks' ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2004-03-31
Previous Quarter
-1.5 M
Current Value
-3.1 M
Quarterly Volatility
10.9 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of now, Birks' Sales General And Administrative To Revenue is increasing as compared to previous years. The Birks' current Days Of Sales Outstanding is estimated to increase to 13.97, while Operating Cash Flow Sales Ratio is projected to decrease to (0.04). As of now, Birks' Interest Income is decreasing as compared to previous years. The Birks' current Income Quality is estimated to increase to 0.93, while Accumulated Other Comprehensive Income is projected to decrease to under 20.9 K.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.420.397
Notably Up
Slightly volatile
For Birks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Birks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Birks Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Birks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Birks Group over time as well as its relative position and ranking within its peers.
  
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Is Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Birks. If investors know Birks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Birks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.17)
Revenue Per Share
9.722
Quarterly Revenue Growth
0.175
Return On Assets
0.0038
Return On Equity
(5.89)
The market value of Birks Group is measured differently than its book value, which is the value of Birks that is recorded on the company's balance sheet. Investors also form their own opinion of Birks' value that differs from its market value or its book value, called intrinsic value, which is Birks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Birks' market value can be influenced by many factors that don't directly affect Birks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Birks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Birks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Birks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Birks Group Return On Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Birks's current stock value. Our valuation model uses many indicators to compare Birks value to that of its competitors to determine the firm's financial worth.
Birks Group is rated below average in net income category among its peers. It is rated below average in return on equity category among its peers . The last year's value of Net Loss was reported at (4.63 Million). The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Birks' earnings, one of the primary drivers of an investment's value.

Birks Return On Equity vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Birks

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(4.63 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Birks

Return On Equity

 = 

Net Income

Total Equity

 = 
-5.89
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Birks Return On Equity Comparison

Birks is currently under evaluation in return on equity category among its peers.

Birks Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Birks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Birks will eventually generate negative long term returns. The profitability progress is the general direction of Birks' change in net profit over the period of time. It can combine multiple indicators of Birks, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income22 K20.9 K
Operating Income1.2 M1.2 M
Income Before Tax-6.8 M-7.1 M
Total Other Income Expense Net-8 M-7.6 M
Net Loss-4.6 M-4.9 M
Income Tax Expense-2.2 M-2.1 M
Net Loss-6.7 M-6.4 M
Net Loss-4.6 M-4.9 M
Interest Income3.3 M3.4 M
Net Interest Income-8 M-8.4 M
Change To Netincome-826.9 K-868.2 K
Net Loss(0.24)(0.40)
Income Quality 0.04  0.93 
Net Income Per E B T 0.68  0.79 

Birks Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Birks. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Birks position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Birks' important profitability drivers and their relationship over time.

Use Birks in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Birks position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Birks will appreciate offsetting losses from the drop in the long position's value.

Birks Pair Trading

Birks Group Pair Trading Analysis

The ability to find closely correlated positions to Birks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Birks when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Birks - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Birks Group to buy it.
The correlation of Birks is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Birks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Birks Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Birks can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Birks position

In addition to having Birks in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize High Dividend Yield ETFs Theme or any other thematic opportunities.
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When determining whether Birks Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Birks' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Birks Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Birks Group Stock:
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You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
To fully project Birks' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Birks Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Birks' income statement, its balance sheet, and the statement of cash flows.
Potential Birks investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Birks investors may work on each financial statement separately, they are all related. The changes in Birks's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Birks's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.