BUILD-A-BEAR WORKSHOP INC (BBW)
US1200761047 - Common Stock
Taking everything into account, BBW scores 7 out of 10 in our fundamental rating. BBW was compared to 119 industry peers in the Specialty Retail industry. BBW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BBW is cheap, but on the other hand it scores bad on growth. These ratings could make BBW a good candidate for value investing.
1. Profitability
1.1 Basic Checks
BBW had positive earnings in the past year.
BBW had a positive operating cash flow in the past year.
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's Return On Assets of 18.32% is amongst the best of the industry. BBW outperforms 95.69% of its industry peers.
The Return On Equity of BBW (40.74%) is better than 89.66% of its industry peers.
BBW has a better Return On Invested Capital (25.48%) than 92.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBW is significantly above the industry average of 12.38%.
| 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
BBW's Profit Margin of 10.58% is amongst the best of the industry. BBW outperforms 92.24% of its industry peers.
BBW's Operating Margin of 13.06% is amongst the best of the industry. BBW outperforms 89.66% of its industry peers.
With an excellent Gross Margin value of 54.84%, BBW belongs to the best of the industry, outperforming 83.62% of the companies in the same industry.
In the last couple of years the Gross Margin of BBW has grown nicely.
| 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
BBW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
BBW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BBW has been reduced compared to 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 5.03 indicates that BBW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.03, BBW belongs to the best of the industry, outperforming 85.34% of the companies in the same industry.
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 | 5.03 |
ROIC/WACC2.46
WACC10.34%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BBW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.45, BBW perfoms like the industry average, outperforming 56.03% of the companies in the same 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 has a Quick ratio of 0.63. This is in the better half of the industry: BBW outperforms 63.79% 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
BBW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.44%.
BBW shows a small growth in Revenue. In the last year, the Revenue has grown by 2.75%.
The Revenue has been growing slightly by 7.63% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.79% on average over the next years. This is quite good.
Based on estimates for the next years, BBW will show a small growth in Revenue. The Revenue will grow by 2.78% on average per year.
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.19 indicates a reasonable valuation of BBW.
Based on the Price/Earnings ratio, BBW is valued cheaply inside the industry as 87.07% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.28, BBW is valued rather cheaply.
A Price/Forward Earnings ratio of 9.93 indicates a reasonable valuation of BBW.
BBW's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBW is cheaper than 84.48% of the companies in the same industry.
BBW is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBW is valued cheaply inside the industry as 85.34% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BBW is valued cheaper than 81.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.52 | ||
| EV/EBITDA | 6.23 |
4.3 Compensation for Growth
BBW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BBW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y7.87%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
BBW has a Yearly Dividend Yield of 1.88%.
Compared to an average industry Dividend Yield of 3.41, BBW pays a better dividend. On top of this BBW pays more dividend than 81.90% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, BBW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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
15.85% of the earnings are spent on dividend by BBW. This is a low number and sustainable payout ratio.
DP15.85%
EPS Next 2Y7.87%
EPS Next 3Y8.29%
BUILD-A-BEAR WORKSHOP INC
NYSE:BBW (1/15/2025, 10:48:00 AM)
39.51
+0.35 (+0.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.5%
Inst Owner Change0.15%
Ins Owners6.57%
Ins Owner Change-16.51%
Market Cap531.01M
Analysts80
Price Target55.42 (40.27%)
Short Float %9.74%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)36.97%
PT rev (3m)36.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.97%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.93 | ||
| P/S | 1.07 | ||
| P/FCF | 12.52 | ||
| P/OCF | 8.98 | ||
| P/B | 4.13 | ||
| P/tB | 4.13 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)3.53
EY8.93%
EPS(NY)3.98
Fwd EY10.07%
FCF(TTM)3.16
FCFY7.99%
OCF(TTM)4.4
OCFY11.14%
SpS36.85
BVpS9.57
TBVpS9.57
PEG (NY)0.95
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 | 5.03 |
F-Score7
WACC10.34%
ROIC/WACC2.46
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%