BUILD-A-BEAR WORKSHOP INC (BBW)
US1200761047 - Common Stock
Taking everything into account, BBW scores 7 out of 10 in our fundamental rating. BBW was compared to 125 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes BBW very considerable for value and 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.
The reported net income has been mixed in the past 5 years: BBW reported negative net income in multiple years.
Of the past 5 years BBW 4 years had a positive operating cash flow.
1.2 Ratios
BBW's Return On Assets of 20.35% is amongst the best of the industry. BBW outperforms 96.80% of its industry peers.
Looking at the Return On Equity, with a value of 45.67%, BBW belongs to the top of the industry, outperforming 91.20% of the companies in the same industry.
BBW's Return On Invested Capital of 34.05% is amongst the best of the industry. BBW outperforms 97.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.35% | ||
| ROE | 45.67% | ||
| ROIC | 34.05% |
ROA(3y)8.69%
ROA(5y)3.15%
ROE(3y)18.87%
ROE(5y)7.59%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BBW has a Profit Margin of 10.58%. This is amongst the best in the industry. BBW outperforms 92.80% of its industry peers.
BBW's Profit Margin has improved in the last couple of years.
The Operating Margin of BBW (13.67%) is better than 90.40% of its industry peers.
In the last couple of years the Operating Margin of BBW has grown nicely.
The Gross Margin of BBW (53.93%) is better than 85.60% of its industry peers.
In the last couple of years the Gross Margin of BBW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.67% | ||
| PM (TTM) | 10.58% | ||
| GM | 53.93% |
OM growth 3Y198.5%
OM growth 5Y28.03%
PM growth 3Y387.35%
PM growth 5Y36.32%
GM growth 3Y5.02%
GM growth 5Y2.16%
2. Health
2.1 Basic Checks
BBW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
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 4.95 indicates that BBW is not in any danger for bankruptcy at the moment.
BBW has a Altman-Z score of 4.95. This is amongst the best in the industry. BBW outperforms 91.20% 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 | 4.95 |
ROIC/WACC3.69
WACC9.23%
2.3 Liquidity
A Current Ratio of 1.37 indicates that BBW should not have too much problems paying its short term obligations.
The Current ratio of BBW (1.37) is comparable to the rest of the industry.
A Quick Ratio of 0.61 indicates that BBW may have some problems paying its short term obligations.
BBW has a Quick ratio (0.61) which is in line with 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 | 1.37 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.91% over the past year.
Measured over the past years, BBW shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.09% on average per year.
The Revenue has been growing slightly by 6.42% in the past year.
BBW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.51% yearly.
EPS 1Y (TTM)22.91%
EPS 3Y436.01%
EPS 5Y45.09%
EPS growth Q2Q3.92%
Revenue 1Y (TTM)6.42%
Revenue growth 3Y11.39%
Revenue growth 5Y5.51%
Revenue growth Q2Q2.93%
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 9.18% yearly.
The Revenue is expected to grow by 3.36% on average over the next years.
EPS Next Y14.03%
EPS Next 2Y10.45%
EPS Next 3Y8.03%
EPS Next 5Y9.18%
Revenue Next Year5.85%
Revenue Next 2Y4.41%
Revenue Next 3Y4.08%
Revenue Next 5Y3.36%
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
A Price/Earnings ratio of 8.15 indicates a reasonable valuation of BBW.
Based on the Price/Earnings ratio, BBW is valued cheaper than 92.00% of the companies in the same industry.
BBW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.80.
Based on the Price/Forward Earnings ratio of 7.33, the valuation of BBW can be described as very cheap.
Based on the Price/Forward Earnings ratio, BBW is valued cheaply inside the industry as 94.40% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.27. BBW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 7.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBW is valued cheaper than 87.20% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBW indicates a rather cheap valuation: BBW is cheaper than 85.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| EV/EBITDA | 4.66 |
4.3 Compensation for Growth
BBW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of BBW may justify a higher PE ratio.
PEG (NY)0.58
PEG (5Y)0.18
EPS Next 2Y10.45%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.84%, BBW has a reasonable but not impressive dividend return.
BBW's Dividend Yield is rather good when compared to the industry average which is at 3.38. BBW pays more dividend than 89.60% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BBW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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
43.34% of the earnings are spent on dividend by BBW. This is a bit on the high side, but may be sustainable.
DP43.34%
EPS Next 2Y10.45%
EPS Next 3Y8.03%
BUILD-A-BEAR WORKSHOP INC
NYSE:BBW (4/18/2024, 7:04:00 PM)
After market: 27.54 0 (0%)27.54
+0.22 (+0.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap394.10M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Dividend Growth(5Y)
DP
Div Incr Years
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Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 7.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.58
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.35% | ||
| ROE | 45.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.67% | ||
| PM (TTM) | 10.58% | ||
| GM | 53.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.91%
EPS 3Y436.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.42%
Revenue growth 3Y11.39%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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