HAMILTON BEACH BRAND-A (HBB) Stock Fundamental Analysis
NYSE:HBB - New York Stock Exchange, Inc. - US40701T1043 - Common Stock - Currency: USD
Overall HBB gets a fundamental rating of 5 out of 10. We evaluated HBB against 63 industry peers in the Household Durables industry. While HBB has a great profitability rating, there are some minor concerns on its financial health. HBB is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years HBB has 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 8.07%, HBB is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
The Return On Equity of HBB (20.67%) is better than 84.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.40%, HBB belongs to the top of the industry, outperforming 84.13% 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 10.55%.
The last Return On Invested Capital (15.40%) for HBB is above the 3 year average (12.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 20.67% | ||
| ROIC | 15.4% |
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 5.11%. This is comparable to the rest of the industry: HBB outperforms 52.38% of its industry peers.
HBB's Profit Margin has improved in the last couple of years.
HBB has a Operating Margin (7.04%) which is comparable to the rest of the industry.
HBB's Operating Margin has improved in the last couple of years.
HBB has a Gross Margin (26.21%) which is in line with its industry peers.
In the last couple of years the Gross Margin of HBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.04% | ||
| PM (TTM) | 5.11% | ||
| GM | 26.21% |
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
HBB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HBB has less shares outstanding than it did 1 year ago.
HBB has more shares outstanding than it did 5 years ago.
HBB has a better debt/assets ratio than last year.
2.2 Solvency
HBB has an Altman-Z score of 3.45. This indicates that HBB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.45, HBB is doing good in the industry, outperforming 60.32% of the companies in the same industry.
HBB has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.01, HBB belongs to the best of the industry, outperforming 82.54% of the companies in the same industry.
HBB has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.31, HBB is in line with its industry, outperforming 50.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.78
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.97 indicates that HBB should not have too much problems paying its short term obligations.
HBB has a worse Current ratio (1.97) than 65.08% of its industry peers.
A Quick Ratio of 0.93 indicates that HBB may have some problems paying its short term obligations.
With a Quick ratio value of 0.93, HBB perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.87% over the past year.
The Earnings Per Share has been growing by 13.38% on average over the past years. This is quite good.
HBB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.46%.
The Revenue has been growing slightly by 1.36% on average over the past years.
EPS 1Y (TTM)17.87%
EPS 3Y13.38%
EPS 5YN/A
EPS Q2Q%262.5%
Revenue 1Y (TTM)5.46%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.36%
Sales Q2Q%3.97%
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
The Price/Earnings ratio is 7.98, which indicates a rather cheap valuation of HBB.
Compared to the rest of the industry, the Price/Earnings ratio of HBB indicates a somewhat cheap valuation: HBB is cheaper than 73.02% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HBB to the average of the S&P500 Index (27.30), we can say HBB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | N/A |
4.2 Price Multiples
95.24% of the companies in the same industry are more expensive than HBB, based on the Enterprise Value to EBITDA ratio.
HBB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HBB is cheaper than 92.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.38 | ||
| EV/EBITDA | 5.36 |
4.3 Compensation for Growth
HBB has a very decent profitability rating, which 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 2.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.26, HBB pays a better dividend. On top of this HBB pays more dividend than 85.71% of the companies listed in the same industry.
HBB's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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
18.82% of the earnings are spent on dividend by HBB. This is a low number and sustainable payout ratio.
DP18.82%
EPS Next 2YN/A
EPS Next 3YN/A
19.47
-0.5 (-2.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners47.71%
Inst Owner Change0%
Ins Owners21.46%
Ins Owner Change7.47%
Market Cap266.54M
Analysts45
Price TargetN/A
Short Float %3.38%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend0.46
Dividend Growth(5Y)5.17%
DP18.82%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | N/A | ||
| P/S | 0.4 | ||
| P/FCF | 5.38 | ||
| P/OCF | 5.09 | ||
| P/B | 1.63 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)2.44
EY12.53%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)3.62
FCFY18.6%
OCF(TTM)3.82
OCFY19.63%
SpS48.19
BVpS11.92
TBVpS11.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 20.67% | ||
| ROCE | 17.92% | ||
| ROIC | 15.4% | ||
| ROICexc | 18.92% | ||
| ROICexgc | 19.78% | ||
| OM | 7.04% | ||
| PM (TTM) | 5.11% | ||
| GM | 26.21% | ||
| FCFM | 7.51% |
ROA(3y)6.83%
ROA(5y)7.58%
ROE(3y)18.67%
ROE(5y)26.93%
ROIC(3y)12.84%
ROIC(5y)13.53%
ROICexc(3y)14.15%
ROICexc(5y)14.37%
ROICexgc(3y)14.67%
ROICexgc(5y)14.93%
ROCE(3y)14.95%
ROCE(5y)15.75%
ROICexcg growth 3Y12.26%
ROICexcg growth 5Y-9.57%
ROICexc growth 3Y12.03%
ROICexc growth 5Y-8.24%
OM growth 3Y11.91%
OM growth 5Y8.89%
PM growth 3Y13.24%
PM growth 5YN/A
GM growth 3Y7.98%
GM growth 5Y4.43%
F-Score7
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 57.19% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.02% | ||
| Profit Quality | 146.97% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 3.45 |
F-Score7
WACC8.64%
ROIC/WACC1.78
Cap/Depr(3y)63.87%
Cap/Depr(5y)103.48%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.87%
EPS 3Y13.38%
EPS 5YN/A
EPS Q2Q%262.5%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.46%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.36%
Sales Q2Q%3.97%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.68%
EBIT growth 3Y11.7%
EBIT growth 5Y10.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.63%
FCF growth 3Y117.83%
FCF growth 5Y301.01%
OCF growth 1Y0.24%
OCF growth 3Y54.15%
OCF growth 5Y73.34%