HAMILTON BEACH BRAND-A (HBB) Stock Fundamental Analysis
NYSE:HBB - New York Stock Exchange, Inc. - US40701T1043 - Common Stock - Currency: USD
Overall HBB gets a fundamental rating of 5 out of 10. We evaluated HBB against 67 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HBB had positive earnings in the past year.
In the past year HBB had a positive cash flow from operations.
HBB had positive earnings in 4 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
With a Return On Assets value of 6.44%, HBB perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
With a decent Return On Equity value of 17.56%, HBB is doing good in the industry, outperforming 73.85% of the companies in the same industry.
HBB's Return On Invested Capital of 17.99% is amongst the best of the industry. HBB outperforms 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HBB is in line with the industry average of 12.03%.
The 3 year average ROIC (11.14%) for HBB is below the current ROIC(17.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 17.56% | ||
| ROIC | 17.99% |
ROA(3y)6.21%
ROA(5y)5.16%
ROE(3y)19.43%
ROE(5y)15.78%
ROIC(3y)11.14%
ROIC(5y)14.56%
1.3 Margins
The Profit Margin of HBB (4.06%) is comparable to the rest of the industry.
HBB's Profit Margin has improved in the last couple of years.
HBB has a Operating Margin (6.89%) which is in line with its industry peers.
In the last couple of years the Operating Margin of HBB has remained more or less at the same level.
The Gross Margin of HBB (26.20%) is comparable to the rest of the industry.
HBB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.89% | ||
| PM (TTM) | 4.06% | ||
| GM | 26.2% |
OM growth 3Y-2.81%
OM growth 5Y-1.28%
PM growth 3Y-19.27%
PM growth 5Y3.11%
GM growth 3Y0.1%
GM growth 5Y1.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HBB is creating value.
HBB has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, HBB has more shares outstanding
HBB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.12 indicates that HBB is not in any danger for bankruptcy at the moment.
HBB has a Altman-Z score of 3.12. This is comparable to the rest of the industry: HBB outperforms 50.77% of its industry peers.
There is no outstanding debt for HBB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 3.12 |
ROIC/WACC2.04
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.43 indicates that HBB should not have too much problems paying its short term obligations.
The Current ratio of HBB (1.43) is worse than 80.00% of its industry peers.
HBB has a Quick Ratio of 1.43. This is a bad value and indicates that HBB is not financially healthy enough and could expect problems in meeting its short term obligations.
HBB has a Quick ratio of 0.66. This is in the lower half of the industry: HBB underperforms 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
HBB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.35%, which is quite impressive.
HBB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.63% yearly.
Looking at the last year, HBB shows a small growth in Revenue. The Revenue has grown by 5.30% in the last year.
HBB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.13% yearly.
EPS 1Y (TTM)104.35%
EPS 3Y1.71%
EPS 5Y2.63%
EPS Q2Q%-81.08%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y1.2%
Revenue growth 5Y-0.13%
Sales Q2Q%1.99%
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 Y-10.72%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.46%
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
HBB is valuated reasonably with a Price/Earnings ratio of 9.31.
HBB's Price/Earnings ratio is a bit cheaper when compared to the industry. HBB is cheaper than 64.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, HBB is valued rather cheaply.
HBB is valuated reasonably with a Price/Forward Earnings ratio of 10.83.
HBB's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, HBB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HBB indicates a rather cheap valuation: HBB is cheaper than 89.23% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HBB indicates a rather cheap valuation: HBB is cheaper than 96.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.64 | ||
| EV/EBITDA | 5.38 |
4.3 Compensation for Growth
HBB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.55
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
HBB has a Yearly Dividend Yield of 2.61%.
Compared to an average industry Dividend Yield of 3.06, HBB pays a better dividend. On top of this HBB pays more dividend than 86.15% of the companies listed in the same industry.
HBB's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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.
As HBB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.17%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
23.78% of the earnings are spent on dividend by HBB. This is a low number and sustainable payout ratio.
DP23.78%
EPS Next 2YN/A
EPS Next 3YN/A
17.5
-0.15 (-0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners49.07%
Inst Owner Change0.07%
Ins Owners21.74%
Ins Owner Change-0.85%
Market Cap239.75M
Analysts45
Price TargetN/A
Short Float %3.55%
Short Ratio6.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend0.44
Dividend Growth(5Y)5.17%
DP23.78%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 10.83 | ||
| P/S | 0.37 | ||
| P/FCF | 4.64 | ||
| P/OCF | 4.35 | ||
| P/B | 1.6 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 5.38 |
EPS(TTM)1.88
EY10.74%
EPS(NY)1.62
Fwd EY9.23%
FCF(TTM)3.77
FCFY21.55%
OCF(TTM)4.02
OCFY23%
SpS47.29
BVpS10.95
TBVpS10.27
PEG (NY)N/A
PEG (5Y)3.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 17.56% | ||
| ROCE | 22.86% | ||
| ROIC | 17.99% | ||
| ROICexc | 20.35% | ||
| ROICexgc | 21.5% | ||
| OM | 6.89% | ||
| PM (TTM) | 4.06% | ||
| GM | 26.2% | ||
| FCFM | 7.97% |
ROA(3y)6.21%
ROA(5y)5.16%
ROE(3y)19.43%
ROE(5y)15.78%
ROIC(3y)11.14%
ROIC(5y)14.56%
ROICexc(3y)11.42%
ROICexc(5y)14.89%
ROICexgc(3y)11.8%
ROICexgc(5y)15.87%
ROCE(3y)14.15%
ROCE(5y)18.52%
ROICexcg growth 3Y-8.06%
ROICexcg growth 5Y-15.71%
ROICexc growth 3Y-7.73%
ROICexc growth 5Y-14.56%
OM growth 3Y-2.81%
OM growth 5Y-1.28%
PM growth 3Y-19.27%
PM growth 5Y3.11%
GM growth 3Y0.1%
GM growth 5Y1.08%
F-Score7
Asset Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.97 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 69.16% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.05% | ||
| Profit Quality | 196.2% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 3.12 |
F-Score7
WACC8.8%
ROIC/WACC2.04
Cap/Depr(3y)122.08%
Cap/Depr(5y)110.78%
Cap/Sales(3y)0.9%
Cap/Sales(5y)0.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)104.35%
EPS 3Y1.71%
EPS 5Y2.63%
EPS Q2Q%-81.08%
EPS Next Y-10.72%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.3%
Revenue growth 3Y1.2%
Revenue growth 5Y-0.13%
Sales Q2Q%1.99%
Revenue Next Year1.46%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y109.49%
EBIT growth 3Y-1.65%
EBIT growth 5Y-1.41%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y329.69%
FCF growth 3YN/A
FCF growth 5Y78.52%
OCF growth 1Y402.93%
OCF growth 3YN/A
OCF growth 5Y48.05%