HAMILTON BEACH BRAND-A (HBB) Stock Fundamental Analysis
NYSE:HBB - New York Stock Exchange, Inc. - US40701T1043 - Common Stock - Currency: USD
Taking everything into account, HBB scores 5 out of 10 in our fundamental rating. HBB was compared to 63 industry peers in the Household Durables industry. HBB has an excellent profitability rating, but there are some minor concerns on its financial health. 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
HBB had positive earnings in the past year.
HBB had a positive operating cash flow in the past year.
In the past 5 years HBB has always been profitable.
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
HBB has a better Return On Assets (8.07%) than 65.08% of its industry peers.
The Return On Equity of HBB (20.67%) is better than 84.13% of its industry peers.
With an excellent Return On Invested Capital value of 15.40%, HBB belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HBB is above the industry average of 10.55%.
The 3 year average ROIC (12.84%) for HBB is below the current ROIC(15.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 20.67% | ||
| ROIC | 15.4% |
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
Looking at the Profit Margin, with a value of 5.11%, HBB is in line with its industry, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Profit Margin of HBB has grown nicely.
With a Operating Margin value of 7.04%, HBB perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
In the last couple of years the Operating Margin of HBB has grown nicely.
Looking at the Gross Margin, with a value of 26.21%, HBB is in line with its industry, outperforming 53.97% of the companies in the same industry.
In the last couple of years the Gross Margin of HBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.04% | ||
| PM (TTM) | 5.11% | ||
| GM | 26.21% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HBB is still creating some value.
Compared to 1 year ago, HBB has less shares outstanding
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 3.45. This indicates that HBB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.45, HBB is doing good in the industry, outperforming 60.32% of the companies in the same industry.
HBB has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
HBB has a Debt to FCF ratio of 1.01. This is amongst the best in the industry. HBB outperforms 82.54% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that HBB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.31, HBB perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.79
WACC8.58%
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.
The Current ratio of HBB (1.97) is worse than 65.08% of its industry peers.
HBB has a Quick Ratio of 1.97. 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 0.93. This is comparable to the rest of the industry: HBB outperforms 46.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.87% over the past year.
The Earnings Per Share has been growing by 13.38% on average over the past years. This is quite good.
HBB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.46%.
The Revenue has been growing slightly by 1.36% on average over the past years.
EPS 1Y (TTM)17.87%
EPS 3Y13.38%
EPS 5YN/A
EPS Q2Q%262.5%
Revenue 1Y (TTM)5.46%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.36%
Sales Q2Q%3.97%
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
A Price/Earnings ratio of 7.98 indicates a rather cheap valuation of HBB.
HBB's Price/Earnings ratio is a bit cheaper when compared to the industry. HBB is cheaper than 73.02% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, HBB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | N/A |
4.2 Price Multiples
95.24% of the companies in the same industry are more expensive than HBB, based on the Enterprise Value to EBITDA ratio.
HBB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HBB is cheaper than 92.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.38 | ||
| EV/EBITDA | 5.36 |
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)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
HBB has a Yearly Dividend Yield of 2.55%. Purely for dividend investing, there may be better candidates out there.
HBB's Dividend Yield is rather good when compared to the industry average which is at 3.26. HBB pays more dividend than 85.71% of the companies in the same industry.
HBB's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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 Years7
Div Non Decr Years7
5.3 Sustainability
HBB pays out 18.82% of its income as dividend. This is a sustainable payout ratio.
DP18.82%
EPS Next 2YN/A
EPS Next 3YN/A
19.47
-0.5 (-2.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners47.71%
Inst Owner Change0%
Ins Owners21.46%
Ins Owner Change7.47%
Market Cap266.54M
Analysts45
Price TargetN/A
Short Float %3.38%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend0.46
Dividend Growth(5Y)5.17%
DP18.82%
Div Incr Years7
Div Non Decr Years7
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 | 7.98 | ||
| Fwd PE | N/A | ||
| P/S | 0.4 | ||
| P/FCF | 5.38 | ||
| P/OCF | 5.09 | ||
| P/B | 1.63 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)2.44
EY12.53%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)3.62
FCFY18.6%
OCF(TTM)3.82
OCFY19.63%
SpS48.19
BVpS11.92
TBVpS11.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 20.67% | ||
| ROCE | 17.92% | ||
| ROIC | 15.4% | ||
| ROICexc | 18.92% | ||
| ROICexgc | 19.78% | ||
| OM | 7.04% | ||
| PM (TTM) | 5.11% | ||
| GM | 26.21% | ||
| FCFM | 7.51% |
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 | 0.31 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 57.19% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.02% | ||
| Profit Quality | 146.97% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 3.45 |
F-Score7
WACC8.58%
ROIC/WACC1.79
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)17.87%
EPS 3Y13.38%
EPS 5YN/A
EPS Q2Q%262.5%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.46%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.36%
Sales Q2Q%3.97%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.68%
EBIT growth 3Y11.7%
EBIT growth 5Y10.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.63%
FCF growth 3Y117.83%
FCF growth 5Y301.01%
OCF growth 1Y0.24%
OCF growth 3Y54.15%
OCF growth 5Y73.34%