Birks Group Inc. (BGI) is a Luxury Goods company in the Consumer Cyclical sector, currently trading at $0.81. It has a SharesGrow Score of 14/100, indicating a weak investment profile with 0 out of 7 criteria passed.
Valuation: BGI trades at a trailing Price-to-Earnings (P/E) of -1.7 (S&P 500 average ~25).
Financials: revenue is $178M, +3.2%/yr average growth. Net income is $13M (loss), growing at -46.4%/yr. Net profit margin is -7.2% (negative). Gross margin is 37.3% (-4.4 pp trend).
Balance sheet: total debt is $145M with negative equity of -$18M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 0.85 (tight liquidity). Debt-to-assets is 74.2%. Total assets: $196M.
SharesGrow 7-Criteria breakdown: Value ?/100 (Fail), Growth 30/100 (Fail), Past 0/100 (Fail), Health 0/100 (Fail), Moat 35/100 (Fail), Future ?/100 (Fail), Income 10/100 (Fail).
