BUILD-A-BEAR WORKSHOP INC (BBW) Stock Fundamental Analysis
NYSE:BBW - New York Stock Exchange, Inc. - US1200761047 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to BBW. BBW was compared to 121 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making BBW a very profitable company, without any liquidiy or solvency issues. BBW has a decent growth rate and is not valued too expensively. These ratings would make BBW suitable 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.
BBW had positive earnings in 4 of the past 5 years.
BBW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.86%, 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 37.23%, BBW belongs to the best of the industry, outperforming 87.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.67%, BBW belongs to the top of the industry, outperforming 91.74% of the companies in the same industry.
BBW had an Average Return On Invested Capital over the past 3 years of 26.41%. This is significantly above the industry average of 13.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.86% | ||
| ROE | 37.23% | ||
| ROIC | 24.67% |
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's Profit Margin of 10.43% is amongst the best of the industry. BBW outperforms 90.08% of its industry peers.
In the last couple of years the Profit Margin of BBW has grown nicely.
Looking at the Operating Margin, with a value of 13.35%, BBW belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
BBW's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 54.90%, BBW belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
In the last couple of years the Gross Margin of BBW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.35% | ||
| PM (TTM) | 10.43% | ||
| GM | 54.9% |
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
Compared to 5 years ago, BBW has less shares outstanding
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 5.87 indicates that BBW is not in any danger for bankruptcy at the moment.
The Altman-Z score of BBW (5.87) is better than 90.91% of its industry peers.
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 | 5.87 |
ROIC/WACC2.59
WACC9.51%
2.3 Liquidity
BBW has a Current Ratio of 1.59. This is a normal value and indicates that BBW is financially healthy and should not expect problems in meeting its short term obligations.
BBW's Current ratio of 1.59 is fine compared to the rest of the industry. BBW outperforms 68.59% of its industry peers.
A Quick Ratio of 0.71 indicates that BBW may have some problems paying its short term obligations.
BBW has a Quick ratio of 0.71. This is in the better half of the industry: BBW outperforms 61.98% 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 | 1.59 | ||
| Quick Ratio | 0.71 |
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.
The Earnings Per Share has been growing by 185.29% on average over the past years. This is a very strong growth
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
BBW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.08% yearly.
BBW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y8.57%
EPS Next 2Y6.63%
EPS Next 3Y8.42%
EPS Next 5Y8.08%
Revenue Next Year5.18%
Revenue Next 2Y4.41%
Revenue Next 3Y4.25%
Revenue Next 5Y3.76%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 12.75.
Based on the Price/Earnings ratio, BBW is valued a bit cheaper than 76.86% of the companies in the same industry.
BBW is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.25, BBW is valued correctly.
BBW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BBW is cheaper than 67.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BBW to the average of the S&P500 Index (22.41), we can say BBW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBW is valued a bit cheaper than 64.46% 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 64.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.05 | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BBW may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)0.07
EPS Next 2Y6.63%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, BBW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.21, BBW pays a bit more dividend than its industry peers.
BBW's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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
21.29% of the earnings are spent on dividend by BBW. This is a low number and sustainable payout ratio.
DP21.29%
EPS Next 2Y6.63%
EPS Next 3Y8.42%
NYSE:BBW (6/17/2025, 1:43:30 PM)
52.655
-0.17 (-0.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.61%
Inst Owner Change1.26%
Ins Owners5.09%
Ins Owner Change-8.75%
Market Cap695.57M
Analysts80
Price Target60.52 (14.94%)
Short Float %14.95%
Short Ratio6.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend0.8
Dividend Growth(5Y)N/A
DP21.29%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.67%
Min EPS beat(2)4.72%
Max EPS beat(2)10.63%
EPS beat(4)3
Avg EPS beat(4)3.85%
Min EPS beat(4)-11.75%
Max EPS beat(4)11.82%
EPS beat(8)6
Avg EPS beat(8)6.65%
EPS beat(12)9
Avg EPS beat(12)9.84%
EPS beat(16)13
Avg EPS beat(16)60.55%
Revenue beat(2)2
Avg Revenue beat(2)2.62%
Min Revenue beat(2)0.97%
Max Revenue beat(2)4.27%
Revenue beat(4)3
Avg Revenue beat(4)0.37%
Min Revenue beat(4)-5.79%
Max Revenue beat(4)4.27%
Revenue beat(8)5
Avg Revenue beat(8)0.58%
Revenue beat(12)9
Avg Revenue beat(12)2.63%
Revenue beat(16)12
Avg Revenue beat(16)10.58%
PT rev (1m)9.2%
PT rev (3m)9.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)0%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 12.25 | ||
| P/S | 1.4 | ||
| P/FCF | 25.05 | ||
| P/OCF | 14.77 | ||
| P/B | 5 | ||
| P/tB | 5 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)4.13
EY7.84%
EPS(NY)4.3
Fwd EY8.16%
FCF(TTM)2.1
FCFY3.99%
OCF(TTM)3.56
OCFY6.77%
SpS37.58
BVpS10.53
TBVpS10.53
PEG (NY)1.49
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.86% | ||
| ROE | 37.23% | ||
| ROCE | 31.48% | ||
| ROIC | 24.67% | ||
| ROICexc | 28.41% | ||
| ROICexgc | 28.41% | ||
| OM | 13.35% | ||
| PM (TTM) | 10.43% | ||
| GM | 54.9% | ||
| FCFM | 5.59% |
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-Score6
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 130.77% | ||
| Cap/Sales | 3.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.09% | ||
| Profit Quality | 53.63% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 5.87 |
F-Score6
WACC9.51%
ROIC/WACC2.59
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 Y8.57%
EPS Next 2Y6.63%
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 Year5.18%
Revenue Next 2Y4.41%
Revenue Next 3Y4.25%
Revenue Next 5Y3.76%
EBIT growth 1Y1.33%
EBIT growth 3Y9.1%
EBIT growth 5Y108.19%
EBIT Next Year25.98%
EBIT Next 3Y12.11%
EBIT Next 5Y8.39%
FCF growth 1Y-39.65%
FCF growth 3Y11.65%
FCF growth 5Y24.65%
OCF growth 1Y-26.78%
OCF growth 3Y18.81%
OCF growth 5Y16.86%