BUILD-A-BEAR WORKSHOP INC (BBW) Stock Fundamental Analysis
NYSE:BBW - New York Stock Exchange, Inc. - US1200761047 - Common Stock - Currency: USD
Overall BBW gets a fundamental rating of 7 out of 10. We evaluated BBW against 121 industry peers in the Specialty Retail industry. BBW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BBW is valued quite cheap, but it does not seem to be growing. These ratings would make BBW suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year BBW was profitable.
In the past year BBW had a positive cash flow from operations.
Of the past 5 years BBW 4 years were profitable.
BBW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BBW has a better Return On Assets (18.32%) than 95.73% of its industry peers.
BBW's Return On Equity of 40.74% is amongst the best of the industry. BBW outperforms 89.74% of its industry peers.
The Return On Invested Capital of BBW (25.48%) is better than 92.31% of its industry peers.
BBW had an Average Return On Invested Capital over the past 3 years of 26.15%. This is significantly above the industry average of 12.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.32% | ||
| ROE | 40.74% | ||
| ROIC | 25.48% |
ROA(3y)18.08%
ROA(5y)9.11%
ROE(3y)43.84%
ROE(5y)19.53%
ROIC(3y)26.15%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of BBW (10.58%) is better than 92.31% of its industry peers.
BBW's Operating Margin of 13.06% is amongst the best of the industry. BBW outperforms 89.74% of its industry peers.
With an excellent Gross Margin value of 54.84%, BBW belongs to the best of the industry, outperforming 82.91% of the companies in the same industry.
BBW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.06% | ||
| PM (TTM) | 10.58% | ||
| GM | 54.84% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.83%
GM growth 5Y4.93%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BBW is creating value.
The number of shares outstanding for BBW has been reduced compared to 1 year ago.
BBW has less shares outstanding than it did 5 years ago.
BBW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.98 indicates that BBW is not in any danger for bankruptcy at the moment.
BBW's Altman-Z score of 4.98 is amongst the best of the industry. BBW outperforms 87.18% of its industry peers.
BBW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.98 |
ROIC/WACC2.51
WACC10.17%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BBW should not have too much problems paying its short term obligations.
BBW has a Current ratio (1.45) which is comparable to the rest of the industry.
BBW has a Quick Ratio of 1.45. This is a bad value and indicates that BBW is not financially healthy enough and could expect problems in meeting its short term obligations.
BBW's Quick ratio of 0.63 is fine compared to the rest of the industry. BBW outperforms 63.25% of its industry peers.
The current and quick ratio evaluation for BBW is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.44% over the past year.
The Revenue has been growing slightly by 2.75% in the past year.
BBW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.63% yearly.
EPS 1Y (TTM)4.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.74%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y23.95%
Revenue growth 5Y7.63%
Sales Q2Q%11.03%
3.2 Future
BBW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.79% yearly.
The Revenue is expected to grow by 2.78% on average over the next years.
EPS Next Y11.78%
EPS Next 2Y7.87%
EPS Next 3Y8.29%
EPS Next 5Y8.79%
Revenue Next Year1.27%
Revenue Next 2Y1.93%
Revenue Next 3Y2.63%
Revenue Next 5Y2.78%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.83, which indicates a very decent valuation of BBW.
Compared to the rest of the industry, the Price/Earnings ratio of BBW indicates a rather cheap valuation: BBW is cheaper than 85.47% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. BBW is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.61 indicates a reasonable valuation of BBW.
85.47% of the companies in the same industry are more expensive than BBW, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.70. BBW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
82.05% of the companies in the same industry are more expensive than BBW, based on the Enterprise Value to EBITDA ratio.
BBW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBW is cheaper than 80.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.12 | ||
| EV/EBITDA | 6.08 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of BBW may justify a higher PE ratio.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y7.87%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
BBW has a Yearly Dividend Yield of 2.00%.
BBW's Dividend Yield is rather good when compared to the industry average which is at 4.32. BBW pays more dividend than 81.20% of the companies in the same industry.
BBW's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
BBW has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BBW pays out 15.85% of its income as dividend. This is a sustainable payout ratio.
DP15.85%
EPS Next 2Y7.87%
EPS Next 3Y8.29%
38.24
-1.73 (-4.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.58%
Inst Owner Change-84.97%
Ins Owners5.27%
Ins Owner Change-16.74%
Market Cap513.95M
Analysts80
Price Target55.42 (44.93%)
Short Float %11.14%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend1.52
Dividend Growth(5Y)N/A
DP15.85%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.23%
Min EPS beat(2)10.63%
Max EPS beat(2)11.82%
EPS beat(4)3
Avg EPS beat(4)2.8%
Min EPS beat(4)-11.75%
Max EPS beat(4)11.82%
EPS beat(8)6
Avg EPS beat(8)7.93%
EPS beat(12)9
Avg EPS beat(12)9.82%
EPS beat(16)13
Avg EPS beat(16)72.18%
Revenue beat(2)2
Avg Revenue beat(2)3.15%
Min Revenue beat(2)2.03%
Max Revenue beat(2)4.27%
Revenue beat(4)2
Avg Revenue beat(4)-0.31%
Min Revenue beat(4)-5.79%
Max Revenue beat(4)4.27%
Revenue beat(8)5
Avg Revenue beat(8)1.02%
Revenue beat(12)8
Avg Revenue beat(12)2.48%
Revenue beat(16)12
Avg Revenue beat(16)10.67%
PT rev (1m)0%
PT rev (3m)36.97%
EPS NQ rev (1m)-7.01%
EPS NQ rev (3m)-4.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-3.97%
Revenue NQ rev (3m)-5.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 9.61 | ||
| P/S | 1.04 | ||
| P/FCF | 12.12 | ||
| P/OCF | 8.69 | ||
| P/B | 4 | ||
| P/tB | 4 | ||
| EV/EBITDA | 6.08 |
EPS(TTM)3.53
EY9.23%
EPS(NY)3.98
Fwd EY10.41%
FCF(TTM)3.16
FCFY8.25%
OCF(TTM)4.4
OCFY11.51%
SpS36.85
BVpS9.57
TBVpS9.57
PEG (NY)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.32% | ||
| ROE | 40.74% | ||
| ROCE | 32.43% | ||
| ROIC | 25.48% | ||
| ROICexc | 29.81% | ||
| ROICexgc | 29.81% | ||
| OM | 13.06% | ||
| PM (TTM) | 10.58% | ||
| GM | 54.84% | ||
| FCFM | 8.56% |
ROA(3y)18.08%
ROA(5y)9.11%
ROE(3y)43.84%
ROE(5y)19.53%
ROIC(3y)26.15%
ROIC(5y)N/A
ROICexc(3y)33.66%
ROICexc(5y)N/A
ROICexgc(3y)33.66%
ROICexgc(5y)N/A
ROCE(3y)33.28%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.83%
GM growth 5Y4.93%
F-Score7
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 110.87% | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.14% | ||
| Profit Quality | 80.95% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 4.98 |
F-Score7
WACC10.17%
ROIC/WACC2.51
Cap/Depr(3y)103.13%
Cap/Depr(5y)87.54%
Cap/Sales(3y)2.88%
Cap/Sales(5y)2.86%
Profit Quality(3y)66.47%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.74%
EPS Next Y11.78%
EPS Next 2Y7.87%
EPS Next 3Y8.29%
EPS Next 5Y8.79%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y23.95%
Revenue growth 5Y7.63%
Sales Q2Q%11.03%
Revenue Next Year1.27%
Revenue Next 2Y1.93%
Revenue Next 3Y2.63%
Revenue Next 5Y2.78%
EBIT growth 1Y-1.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year22.96%
EBIT Next 3Y10.53%
EBIT Next 5Y7.57%
FCF growth 1Y257.84%
FCF growth 3Y76.7%
FCF growth 5YN/A
OCF growth 1Y167.75%
OCF growth 3Y68.72%
OCF growth 5Y46.32%