BUILD-A-BEAR WORKSHOP INC (BBW) Stock Fundamental Analysis
NYSE:BBW - US1200761047 - Common Stock
57.32 USD
+1.38 (+2.47%)
57.32 USD
0 (0%)
BBW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 123 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 has a decent growth rate and is not valued too expensively. 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.
In the past year BBW had a positive cash flow from operations.
Of the past 5 years BBW 4 years were profitable.
In the past 5 years BBW always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 18.05%, BBW belongs to the best of the industry, outperforming 95.94% of the companies in the same industry.
BBW has a better Return On Equity (37.43%) than 89.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.00%, BBW belongs to the top of the industry, outperforming 93.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BBW is significantly above the industry average of 11.94%.
| 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
The Profit Margin of BBW (10.91%) is better than 91.87% of its industry peers.
BBW's Profit Margin has improved in the last couple of years.
The Operating Margin of BBW (13.94%) is better than 91.87% of its industry peers.
In the last couple of years the Operating Margin of BBW has grown nicely.
BBW has a better Gross Margin (55.55%) than 85.37% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BBW is creating value.
Compared to 1 year ago, BBW has less shares outstanding
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 5.86 indicates that BBW is not in any danger for bankruptcy at the moment.
BBW has a Altman-Z score of 5.86. This is amongst the best in the industry. BBW outperforms 91.06% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.86 |
ROIC/WACC2.63
WACC9.5%
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.
With a decent Current ratio value of 1.67, BBW is doing good in the industry, outperforming 73.98% of the companies in the same industry.
BBW has a Quick Ratio of 1.67. 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 better Quick ratio (0.82) than 71.54% 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 | 1.67 | ||
| 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.
BBW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 185.29% yearly.
Looking at the last year, BBW shows a small growth in Revenue. The Revenue has grown by 6.09% in the last year.
The Revenue has been growing slightly by 7.96% on average over the past years.
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 9.75% on average per year.
Based on estimates for the next years, BBW will show a small growth in Revenue. The Revenue will grow by 4.76% on average per year.
EPS Next Y6.54%
EPS Next 2Y5.62%
EPS Next 3Y6.49%
EPS Next 5Y9.75%
Revenue Next Year5.92%
Revenue Next 2Y3.96%
Revenue Next 3Y3.99%
Revenue Next 5Y4.76%
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
A Price/Earnings ratio of 13.88 indicates a correct valuation of BBW.
Based on the Price/Earnings ratio, BBW is valued a bit cheaper than the industry average as 79.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.08. BBW is valued slightly cheaper when compared to this.
BBW is valuated correctly with a Price/Forward Earnings ratio of 13.59.
74.80% of the companies in the same industry are more expensive than BBW, based on the Price/Forward Earnings ratio.
BBW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
69.11% of the companies in the same industry are more expensive than BBW, based on the Enterprise Value to EBITDA ratio.
78.05% of the companies in the same industry are more expensive than BBW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.93 | ||
| EV/EBITDA | 8.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BBW may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)0.07
EPS Next 2Y5.62%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.48%, BBW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.70, BBW pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, BBW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
BBW has been paying a dividend for less than 5 years, so it still needs to build a track record.
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 2Y5.62%
EPS Next 3Y6.49%
57.32
+1.38 (+2.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.46%
Inst Owner Change3.55%
Ins Owners4.96%
Ins Owner Change-0.2%
Market Cap757.20M
Analysts80
Price Target64.26 (12.11%)
Short Float %13.87%
Short Ratio7.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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)2.16%
PT rev (3m)15.95%
EPS NQ rev (1m)5.26%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0.89%
EPS NY rev (3m)-1.87%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 13.59 | ||
| P/S | 1.48 | ||
| P/FCF | 16.93 | ||
| P/OCF | 11.73 | ||
| P/B | 5.09 | ||
| P/tB | 5.09 | ||
| EV/EBITDA | 8.08 |
EPS(TTM)4.13
EY7.21%
EPS(NY)4.22
Fwd EY7.36%
FCF(TTM)3.39
FCFY5.91%
OCF(TTM)4.88
OCFY8.52%
SpS38.61
BVpS11.26
TBVpS11.26
PEG (NY)2.12
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 | 5.86 |
F-Score7
WACC9.5%
ROIC/WACC2.63
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 Y6.54%
EPS Next 2Y5.62%
EPS Next 3Y6.49%
EPS Next 5Y9.75%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y6.45%
Revenue growth 5Y7.96%
Sales Q2Q%11.91%
Revenue Next Year5.92%
Revenue Next 2Y3.96%
Revenue Next 3Y3.99%
Revenue Next 5Y4.76%
EBIT growth 1Y17.12%
EBIT growth 3Y9.1%
EBIT growth 5Y108.19%
EBIT Next Year23.61%
EBIT Next 3Y13.67%
EBIT Next 5Y9.9%
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%