HAMILTON BEACH BRAND-A (HBB) Stock Fundamental Analysis
NYSE:HBB - New York Stock Exchange, Inc. - US40701T1043 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HBB. HBB was compared to 64 industry peers in the Household Durables industry. HBB has an average financial health and profitability rating. HBB has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HBB was profitable.
HBB had a positive operating cash flow in the past year.
HBB had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: HBB reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of HBB (7.41%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 18.54%, HBB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
HBB's Return On Invested Capital of 14.22% is amongst the best of the industry. HBB outperforms 81.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HBB is in line with the industry average of 12.30%.
The 3 year average ROIC (12.84%) for HBB is below the current ROIC(14.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.41% | ||
| ROE | 18.54% | ||
| ROIC | 14.22% |
ROA(3y)6.83%
ROA(5y)7.58%
ROE(3y)18.67%
ROE(5y)26.93%
ROIC(3y)12.84%
ROIC(5y)13.53%
1.3 Margins
The Profit Margin of HBB (4.70%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HBB has grown nicely.
HBB has a Operating Margin (6.60%) which is comparable to the rest of the industry.
HBB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 26.00%, HBB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
HBB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.6% | ||
| PM (TTM) | 4.7% | ||
| GM | 26% |
OM growth 3Y11.91%
OM growth 5Y8.89%
PM growth 3Y13.24%
PM growth 5YN/A
GM growth 3Y7.98%
GM growth 5Y4.43%
2. Health
2.1 Basic Checks
HBB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HBB has been reduced compared to 1 year ago.
HBB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HBB has an improved debt to assets ratio.
2.2 Solvency
HBB has an Altman-Z score of 3.36. This indicates that HBB is financially healthy and has little risk of bankruptcy at the moment.
HBB's Altman-Z score of 3.36 is in line compared to the rest of the industry. HBB outperforms 56.25% of its industry peers.
HBB has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
HBB's Debt to FCF ratio of 0.80 is fine compared to the rest of the industry. HBB outperforms 78.13% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that HBB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.30, HBB is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 3.36 |
ROIC/WACC1.66
WACC8.59%
2.3 Liquidity
HBB has a Current Ratio of 1.97. This is a normal value and indicates that HBB is financially healthy and should not expect problems in meeting its short term obligations.
HBB has a Current ratio of 1.97. This is comparable to the rest of the industry: HBB outperforms 40.63% of its industry peers.
A Quick Ratio of 1.16 indicates that HBB should not have too much problems paying its short term obligations.
The Quick ratio of HBB (1.16) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
HBB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.20%, which is quite impressive.
Measured over the past years, HBB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.38% on average per year.
Looking at the last year, HBB shows a small growth in Revenue. The Revenue has grown by 4.64% in the last year.
Measured over the past years, HBB shows a small growth in Revenue. The Revenue has been growing by 1.36% on average per year.
EPS 1Y (TTM)23.2%
EPS 3Y13.38%
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.36%
Sales Q2Q%3.32%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.00, the valuation of HBB can be described as very cheap.
60.94% of the companies in the same industry are more expensive than HBB, based on the Price/Earnings ratio.
HBB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | N/A |
4.2 Price Multiples
78.13% of the companies in the same industry are more expensive than HBB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HBB is valued cheaply inside the industry as 95.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.95 | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
The decent profitability rating of HBB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.58%, HBB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.71, HBB pays a better dividend. On top of this HBB pays more dividend than 84.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, HBB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
The dividend of HBB has a limited annual growth rate of 5.17%.
HBB has been paying a dividend for over 5 years, so it has already some track record.
HBB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.17%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
HBB pays out 20.46% of its income as dividend. This is a sustainable payout ratio.
DP20.46%
EPS Next 2YN/A
EPS Next 3YN/A
17.83
-0.13 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners49.07%
Inst Owner Change0%
Ins Owners21.74%
Ins Owner Change13.55%
Market Cap245.70M
Analysts45
Price TargetN/A
Short Float %3.22%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend0.46
Dividend Growth(5Y)5.17%
DP20.46%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | N/A | ||
| P/S | 0.38 | ||
| P/FCF | 3.95 | ||
| P/OCF | 3.76 | ||
| P/B | 1.48 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 5.21 |
EPS(TTM)2.23
EY12.51%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)4.52
FCFY25.32%
OCF(TTM)4.75
OCFY26.62%
SpS47.51
BVpS12.04
TBVpS11.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.41% | ||
| ROE | 18.54% | ||
| ROCE | 16.56% | ||
| ROIC | 14.22% | ||
| ROICexc | 17.24% | ||
| ROICexgc | 18.01% | ||
| OM | 6.6% | ||
| PM (TTM) | 4.7% | ||
| GM | 26% | ||
| FCFM | 9.5% |
ROA(3y)6.83%
ROA(5y)7.58%
ROE(3y)18.67%
ROE(5y)26.93%
ROIC(3y)12.84%
ROIC(5y)13.53%
ROICexc(3y)14.15%
ROICexc(5y)14.37%
ROICexgc(3y)14.67%
ROICexgc(5y)14.93%
ROCE(3y)14.95%
ROCE(5y)15.75%
ROICexcg growth 3Y12.26%
ROICexcg growth 5Y-9.57%
ROICexc growth 3Y12.03%
ROICexc growth 5Y-8.24%
OM growth 3Y11.91%
OM growth 5Y8.89%
PM growth 3Y13.24%
PM growth 5YN/A
GM growth 3Y7.98%
GM growth 5Y4.43%
F-Score7
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 66.51% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 136.27% | ||
| Profit Quality | 202.29% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 3.36 |
F-Score7
WACC8.59%
ROIC/WACC1.66
Cap/Depr(3y)63.87%
Cap/Depr(5y)103.48%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.2%
EPS 3Y13.38%
EPS 5YN/A
EPS Q2Q%25%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.64%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.36%
Sales Q2Q%3.32%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.47%
EBIT growth 3Y11.7%
EBIT growth 5Y10.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-26.98%
FCF growth 3Y117.83%
FCF growth 5Y301.01%
OCF growth 1Y-26.2%
OCF growth 3Y54.15%
OCF growth 5Y73.34%