HAMILTON BEACH BRAND-A (HBB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HBB - US40701T1043 - Common Stock
18.98 USD
-0.31 (-1.61%)
We assign a fundamental rating of 5 out of 10 to HBB. HBB was compared to 60 industry peers in the Household Durables industry. Both the profitability and the financial health of HBB get a neutral evaluation. Nothing too spectacular is happening here. 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.
- In the past year HBB had a positive cash flow from operations.
- In the past 5 years HBB has always been profitable.
- In multiple years HBB reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.13%, HBB is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- HBB has a better Return On Equity (19.45%) than 83.33% of its industry peers.
- With a decent Return On Invested Capital value of 11.61%, HBB is doing good in the industry, outperforming 75.00% 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 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 19.45% | ||
| ROIC | 11.61% |
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
- With a Profit Margin value of 5.25%, HBB perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
- In the last couple of years the Profit Margin of HBB has grown nicely.
- Looking at the Operating Margin, with a value of 5.71%, HBB is doing worse than 60.00% of the companies in the same industry.
- HBB's Operating Margin has improved in the last couple of years.
- The Gross Margin of HBB (24.97%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of HBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.71% | ||
| PM (TTM) | 5.25% | ||
| GM | 24.97% |
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.
- HBB has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HBB has more shares outstanding
- The debt/assets ratio for HBB has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.44 indicates that HBB is not in any danger for bankruptcy at the moment.
- HBB has a Altman-Z score (3.44) which is comparable to the rest of the industry.
- The Debt to FCF ratio of HBB is 3.99, which is a good value as it means it would take HBB, 3.99 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 3.99, HBB perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
- HBB has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
- HBB has a Debt to Equity ratio (0.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.24
WACC9.4%
2.3 Liquidity
- A Current Ratio of 2.15 indicates that HBB has no problem at all paying its short term obligations.
- HBB's Current ratio of 2.15 is on the low side compared to the rest of the industry. HBB is outperformed by 61.67% of its industry peers.
- A Quick Ratio of 0.86 indicates that HBB may have some problems paying its short term obligations.
- HBB has a Quick ratio (0.86) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 23.94% over the past year.
- HBB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.38% yearly.
- The Revenue has decreased by -6.24% in the past year.
- HBB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.36% yearly.
EPS 1Y (TTM)23.94%
EPS 3Y13.38%
EPS 5YN/A
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-6.24%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.36%
Sales Q2Q%-15.25%
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 8.15 indicates a reasonable valuation of HBB.
- Based on the Price/Earnings ratio, HBB is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. HBB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- HBB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HBB is cheaper than 66.67% of the companies in the same industry.
- HBB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.37 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
- The decent profitability rating of HBB 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 2.49%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.16, HBB pays a better dividend. On top of this HBB pays more dividend than 83.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, HBB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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 20.02% of its income as dividend. This is a sustainable payout ratio.
DP20.02%
EPS Next 2YN/A
EPS Next 3YN/A
HAMILTON BEACH BRAND-A / HBB FAQ
What is the ChartMill fundamental rating of HAMILTON BEACH BRAND-A (HBB) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HBB.
What is the valuation status of HAMILTON BEACH BRAND-A (HBB) stock?
ChartMill assigns a valuation rating of 4 / 10 to HAMILTON BEACH BRAND-A (HBB). This can be considered as Fairly Valued.
Can you provide the profitability details for HAMILTON BEACH BRAND-A?
HAMILTON BEACH BRAND-A (HBB) has a profitability rating of 6 / 10.
How sustainable is the dividend of HAMILTON BEACH BRAND-A (HBB) stock?
The dividend rating of HAMILTON BEACH BRAND-A (HBB) is 6 / 10 and the dividend payout ratio is 20.02%.