We assign a fundamental rating of 5 out of 10 to HBB. HBB was compared to 60 industry peers in the Household Durables industry. HBB has an average financial health and profitability rating. HBB is valued correctly, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
HBB had positive earnings in each of the past 5 years.
In multiple years HBB reported negative operating cash flow during the last 5 years.

1.2 Ratios

HBB's Return On Assets of 8.13% is fine compared to the rest of the industry. HBB outperforms 73.33% of its industry peers.
The Return On Equity of HBB (19.45%) is better than 86.67% of its industry peers.
With a decent Return On Invested Capital value of 11.61%, HBB is doing good in the industry, outperforming 80.00% of the companies in the same industry.
HBB had an Average Return On Invested Capital over the past 3 years of 12.84%. This is above the industry average of 9.52%.

		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

HBB has a Profit Margin of 5.25%. This is comparable to the rest of the industry: HBB outperforms 58.33% of its industry peers.
HBB's Profit Margin has improved in the last couple of years.
The Operating Margin of HBB (5.71%) is worse than 60.00% of its industry peers.
In the last couple of years the Operating Margin of HBB has grown nicely.
Looking at the Gross Margin, with a value of 24.97%, HBB is in line with its industry, outperforming 48.33% of the companies in the same industry.
HBB's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HBB is creating some value.
Compared to 1 year ago, HBB has less shares outstanding
HBB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HBB has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.44 indicates that HBB is not in any danger for bankruptcy at the moment.
HBB's Altman-Z score of 3.44 is in line compared to the rest of the industry. HBB outperforms 55.00% of its industry peers.
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.
HBB has a Debt to FCF ratio of 3.99. This is comparable to the rest of the industry: HBB outperforms 56.67% of its industry peers.
HBB has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
HBB's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. HBB outperforms 51.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.3
Debt/FCF	3.99
Altman-Z	3.44

ROIC/WACC1.27

WACC9.17%

2.3 Liquidity

A Current Ratio of 2.15 indicates that HBB has no problem at all paying its short term obligations.
With a Current ratio value of 2.15, HBB is not doing good in the industry: 61.67% of the companies in the same industry are doing better.
HBB has a Quick Ratio of 2.15. This is a bad value and indicates that HBB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HBB (0.86) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.15
Quick Ratio	0.86

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 23.94% over the past year.
Measured over the past years, HBB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.38% on average per year.
HBB shows a decrease in Revenue. In the last year, the revenue decreased by -6.24%.
The Revenue has been growing slightly by 1.36% on average over the past years.

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.19, the valuation of HBB can be described as reasonable.
HBB's Price/Earnings ratio is rather cheap when compared to the industry. HBB is cheaper than 85.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of HBB to the average of the S&P500 Index (28.32), we can say HBB is valued rather cheaply.

		Industry Rank	Sector Rank
PE	8.19
Fwd PE	N/A

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HBB indicates a somewhat cheap valuation: HBB is cheaper than 65.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HBB.

		Industry Rank	Sector Rank
P/FCF	20.49
EV/EBITDA	7.32

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

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5. Dividend

5.1 Amount

HBB has a Yearly Dividend Yield of 2.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.22, 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 1.83, HBB pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	2.53%

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.
As HBB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Dividend Growth(5Y)5.17%

Div Incr Years7

Div Non Decr Years7

5.3 Sustainability

20.02% of the earnings are spent on dividend by HBB. This is a low number and sustainable payout ratio.

DP20.02%

EPS Next 2YN/A

EPS Next 3YN/A

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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%.