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 has a correct valuation and a medium growth rate. With these ratings, BBW could be worth investigating further for quality 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.
BBW had positive earnings in 4 of the past 5 years.
Each year in the past 5 years BBW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.05%, BBW belongs to the top of the industry, outperforming 95.87% of the companies in the same industry.
With an excellent Return On Equity value of 37.43%, BBW belongs to the best of the industry, outperforming 89.26% of the companies in the same industry.
BBW's Return On Invested Capital of 25.00% is amongst the best of the industry. BBW outperforms 92.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBW is significantly above the industry average of 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.05% | ||
| ROE | 37.43% | ||
| ROIC | 25% |
ROA(3y)18.11%
ROA(5y)12.66%
ROE(3y)39.42%
ROE(5y)26.91%
ROIC(3y)26.41%
ROIC(5y)N/A
1.3 Margins
BBW has a better Profit Margin (10.91%) than 90.91% of its industry peers.
In the last couple of years the Profit Margin of BBW has grown nicely.
BBW has a better Operating Margin (13.94%) than 91.74% of its industry peers.
BBW's Operating Margin has improved in the last couple of years.
BBW has a Gross Margin of 55.55%. This is amongst the best in the industry. BBW outperforms 84.30% of its industry peers.
BBW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.94% | ||
| PM (TTM) | 10.91% | ||
| GM | 55.55% |
OM growth 3Y2.48%
OM growth 5Y92.84%
PM growth 3Y-3.18%
PM growth 5Y159.51%
GM growth 3Y1.19%
GM growth 5Y3.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BBW 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.
There is no outstanding debt for BBW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 5.64 indicates that BBW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.64, BBW belongs to the best of the industry, outperforming 89.26% 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 | 5.64 |
ROIC/WACC2.62
WACC9.55%
2.3 Liquidity
BBW has a Current Ratio of 1.67. This is a normal value and indicates that BBW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.67, BBW is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that BBW may have some problems paying its short term obligations.
BBW's Quick ratio of 0.82 is fine compared to the rest of the industry. BBW outperforms 71.07% of its industry peers.
BBW does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.67 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
BBW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.69%, which is quite impressive.
Measured over the past years, BBW shows a very strong growth in Earnings Per Share. The EPS has been growing by 185.29% on average per year.
Looking at the last year, BBW shows a small growth in Revenue. The Revenue has grown by 6.09% in the last year.
BBW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.96% yearly.
EPS 1Y (TTM)26.69%
EPS 3Y16.67%
EPS 5Y185.29%
EPS Q2Q%42.68%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y6.45%
Revenue growth 5Y7.96%
Sales Q2Q%11.91%
3.2 Future
Based on estimates for the next years, BBW will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.08% on average per year.
Based on estimates for the next years, BBW will show a small growth in Revenue. The Revenue will grow by 3.76% on average per year.
EPS Next Y5.61%
EPS Next 2Y6.56%
EPS Next 3Y8.42%
EPS Next 5Y8.08%
Revenue Next Year5.68%
Revenue Next 2Y4.78%
Revenue Next 3Y4.25%
Revenue Next 5Y3.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
BBW is valuated correctly with a Price/Earnings ratio of 12.06.
Based on the Price/Earnings ratio, BBW is valued cheaper than 80.99% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, BBW is valued rather cheaply.
A Price/Forward Earnings ratio of 11.60 indicates a reasonable valuation of BBW.
Based on the Price/Forward Earnings ratio, BBW is valued a bit cheaper than 76.03% of the companies in the same industry.
BBW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBW is valued a bit cheaper than 71.07% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBW indicates a somewhat cheap valuation: BBW is cheaper than 76.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.7 | ||
| EV/EBITDA | 7.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BBW does not grow enough to justify the current Price/Earnings ratio.
BBW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)0.07
EPS Next 2Y6.56%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.63%, BBW has a reasonable but not impressive dividend return.
BBW's Dividend Yield is a higher than the industry average which is at 4.86.
Compared to the average S&P500 Dividend Yield of 2.35, BBW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 19.85% of its income as dividend. This is a sustainable payout ratio.
DP19.85%
EPS Next 2Y6.56%
EPS Next 3Y8.42%
49.79
-1.61 (-3.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.61%
Inst Owner Change0%
Ins Owners5.09%
Ins Owner Change-5.29%
Market Cap657.73M
Analysts80
Price Target60.52 (21.55%)
Short Float %13.83%
Short Ratio6.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.8
Dividend Growth(5Y)N/A
DP19.85%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.32%
Min EPS beat(2)4.72%
Max EPS beat(2)33.92%
EPS beat(4)4
Avg EPS beat(4)15.27%
Min EPS beat(4)4.72%
Max EPS beat(4)33.92%
EPS beat(8)7
Avg EPS beat(8)11.38%
EPS beat(12)9
Avg EPS beat(12)9.88%
EPS beat(16)13
Avg EPS beat(16)49.41%
Revenue beat(2)2
Avg Revenue beat(2)3.5%
Min Revenue beat(2)0.97%
Max Revenue beat(2)6.02%
Revenue beat(4)4
Avg Revenue beat(4)3.32%
Min Revenue beat(4)0.97%
Max Revenue beat(4)6.02%
Revenue beat(8)5
Avg Revenue beat(8)1.3%
Revenue beat(12)9
Avg Revenue beat(12)1.59%
Revenue beat(16)12
Avg Revenue beat(16)3.99%
PT rev (1m)9.2%
PT rev (3m)9.2%
EPS NQ rev (1m)9.19%
EPS NQ rev (3m)-4.76%
EPS NY rev (1m)-2.73%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 11.6 | ||
| P/S | 1.29 | ||
| P/FCF | 14.7 | ||
| P/OCF | 10.19 | ||
| P/B | 4.42 | ||
| P/tB | 4.42 | ||
| EV/EBITDA | 7.39 |
EPS(TTM)4.13
EY8.29%
EPS(NY)4.29
Fwd EY8.62%
FCF(TTM)3.39
FCFY6.8%
OCF(TTM)4.88
OCFY9.81%
SpS38.61
BVpS11.26
TBVpS11.26
PEG (NY)2.15
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.05% | ||
| ROE | 37.43% | ||
| ROCE | 31.89% | ||
| ROIC | 25% | ||
| ROICexc | 31.2% | ||
| ROICexgc | 31.2% | ||
| OM | 13.94% | ||
| PM (TTM) | 10.91% | ||
| GM | 55.55% | ||
| FCFM | 8.77% |
ROA(3y)18.11%
ROA(5y)12.66%
ROE(3y)39.42%
ROE(5y)26.91%
ROIC(3y)26.41%
ROIC(5y)N/A
ROICexc(3y)33.24%
ROICexc(5y)N/A
ROICexgc(3y)33.24%
ROICexgc(5y)N/A
ROCE(3y)33.7%
ROCE(5y)N/A
ROICexcg growth 3Y-1.12%
ROICexcg growth 5Y108.59%
ROICexc growth 3Y-1.12%
ROICexc growth 5Y108.59%
OM growth 3Y2.48%
OM growth 5Y92.84%
PM growth 3Y-3.18%
PM growth 5Y159.51%
GM growth 3Y1.19%
GM growth 5Y3.88%
F-Score7
Asset Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 133.62% | ||
| Cap/Sales | 3.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.1% | ||
| Profit Quality | 80.39% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 5.64 |
F-Score7
WACC9.55%
ROIC/WACC2.62
Cap/Depr(3y)124.65%
Cap/Depr(5y)95.63%
Cap/Sales(3y)3.52%
Cap/Sales(5y)2.9%
Profit Quality(3y)70.29%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.69%
EPS 3Y16.67%
EPS 5Y185.29%
EPS Q2Q%42.68%
EPS Next Y5.61%
EPS Next 2Y6.56%
EPS Next 3Y8.42%
EPS Next 5Y8.08%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y6.45%
Revenue growth 5Y7.96%
Sales Q2Q%11.91%
Revenue Next Year5.68%
Revenue Next 2Y4.78%
Revenue Next 3Y4.25%
Revenue Next 5Y3.76%
EBIT growth 1Y17.12%
EBIT growth 3Y9.1%
EBIT growth 5Y108.19%
EBIT Next Year25.98%
EBIT Next 3Y12.11%
EBIT Next 5Y8.39%
FCF growth 1Y-2.7%
FCF growth 3Y11.65%
FCF growth 5Y24.65%
OCF growth 1Y4.75%
OCF growth 3Y18.81%
OCF growth 5Y16.86%