NYSE:HBB

Stock Analysis Report

Hamilton Beach Brands Holding

Executive Summary

Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Hamilton Beach Brands Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HBB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

34.0%

HBB

8.2%

US Consumer Durables

7.2%

US Market


1 Year Return

-52.2%

HBB

-20.3%

US Consumer Durables

-10.4%

US Market

Return vs Industry: HBB underperformed the US Consumer Durables industry which returned -20.3% over the past year.

Return vs Market: HBB underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

HBBIndustryMarket
7 Day34.0%8.2%7.2%
30 Day-13.3%-29.9%-12.6%
90 Day-47.3%-33.7%-19.4%
1 Year-51.1%-52.2%-19.2%-20.3%-8.5%-10.4%
3 Yearn/a-20.4%-24.1%15.8%8.3%
5 Yearn/a-15.6%-21.2%35.8%21.0%

Price Volatility Vs. Market

How volatile is Hamilton Beach Brands Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hamilton Beach Brands Holding undervalued compared to its fair value and its price relative to the market?

5.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HBB ($10.06) is trading above our estimate of fair value ($2.04)

Significantly Below Fair Value: HBB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HBB is good value based on its PE Ratio (5.5x) compared to the Consumer Durables industry average (7.7x).

PE vs Market: HBB is good value based on its PE Ratio (5.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HBB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HBB is overvalued based on its PB Ratio (2.5x) compared to the US Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is Hamilton Beach Brands Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.5%

Forecasted Consumer Durables industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HBB's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if HBB's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if HBB's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if HBB's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HBB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hamilton Beach Brands Holding performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBB has a high level of non-cash earnings.

Growing Profit Margin: HBB's current net profit margins (4.1%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: HBB's earnings have declined by -4.6% per year over the past 5 years.

Accelerating Growth: HBB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HBB had negative earnings growth (-7.6%) over the past year, making it difficult to compare to the Consumer Durables industry average (9.8%).


Return on Equity

High ROE: Whilst HBB's Return on Equity (45.55%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Hamilton Beach Brands Holding's financial position?


Financial Position Analysis

Short Term Liabilities: HBB's short term assets ($254.0M) exceed its short term liabilities ($200.7M).

Long Term Liabilities: HBB's short term assets ($254.0M) exceed its long term liabilities ($47.5M).


Debt to Equity History and Analysis

Debt Level: HBB's debt to equity ratio (106.4%) is considered high.

Reducing Debt: Insufficient data to determine if HBB's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HBB's debt is not well covered by operating cash flow (7.1%).

Interest Coverage: HBB's interest payments on its debt are well covered by EBIT (13.7x coverage).


Balance Sheet

Inventory Level: HBB has a high level of physical assets or inventory.

Debt Coverage by Assets: HBB's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

What is Hamilton Beach Brands Holding's current dividend yield, its reliability and sustainability?

3.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HBB's dividend (3.58%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: HBB's dividend (3.58%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HBB has been paying a dividend for less than 10 years.

Growing Dividend: HBB's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.4%), HBB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Greg Trepp (57yo)

2.42s

Tenure

US$2,839,320

Compensation

Mr. Gregory H. Trepp, also known as Greg, has been President and Chief Executive Officer at Hamilton Beach Brands Holding Company since September 29, 2017. From prior to 2013, Director, President and Chief ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD2.84M) is above average for companies of similar size in the US market ($USD602.37K).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Trepp
President2.42yrsUS$2.84m0.59% $807.3k
R. Tidey
Senior VP of North American Sales & Marketing - Hamilton Beach Brandsno dataUS$1.01m0.14% $187.4k
Michelle Mosier
Senior VP1.17yrsno data0.032% $43.8k
Lou Nabhan
Head of Investor Relationsno datano datano data
Dana Sykes
Senior VP2.42yrsno data0.067% $91.8k
Gregory Salyers
Senior Vice President of Global Operations - Hamilton Beach Brandsno datano data0.11% $152.3k
Derek Redmond
Assistant Secretary2.42yrsno datano data

2.4yrs

Average Tenure

55.5yo

Average Age

Experienced Management: HBB's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Trepp
President2.42yrsUS$2.84m0.59% $807.3k
James Ratner
Independent Director2.42yrsUS$183.49k0.28% $387.9k
Alfred Rankin
Non-Executive Chairman2.42yrsUS$1.08m6.22% $8.5m
John Butler
Director3.17yrsUS$160.05k1.16% $1.6m
Mark Belgya
Independent Director2.42yrsUS$169.62k0.069% $95.1k
Dennis LaBarre
Independent Director2.42yrsUS$199.62k0.33% $450.6k
Michael Miller
Independent Director2.42yrsUS$193.05k0.085% $116.0k
John Jumper
Independent Director2.42yrsUS$173.05k0.17% $235.3k
Paul Furlow
Independent Director0.83yrno data0.026% $36.0k
Thomas Rankin
Director3.17yrsUS$156.62k2.27% $3.1m

2.4yrs

Average Tenure

69.5yo

Average Age

Experienced Board: HBB's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hamilton Beach Brands Holding Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hamilton Beach Brands Holding Company
  • Ticker: HBB
  • Exchange: NYSE
  • Founded: 1904
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: US$137.070m
  • Shares outstanding: 13.63m
  • Website: https://www.hamiltonbeachbrands.com

Number of Employees


Location

  • Hamilton Beach Brands Holding Company
  • 4421 Waterfront Drive
  • Glen Allen
  • Virginia
  • 23060
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBBNYSE (New York Stock Exchange)YesClass A Common StockUSUSDOct 2017

Biography

Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances. It offers air fryers, blenders, coffee makers, food processors, indoor electric grills, irons, juicers, mixers, slow cookers, toasters, and toaster ovens. The company also provides air purifiers under the TrueAir brand; commercial products for restaurants, fast food chains, bars, and hotels under the Hamilton Beach Commercial and Proctor Silex Commercial brands; and sonic rechargeable toothbrushes under the Brightline brand. In addition, it offers counter top appliances and kitchen tools under the Wolf Gourmet brand; garment-care line products under CHI brand name; game and garden food processing equipment under the Weston brand; sells cocktail delivery system under the Bartesian brand; and supplies private label products. The company sells its products through a network of mass merchandisers, e-commerce retailers, national department stores, variety and drug store chains, specialty home retailers, distributors, and other retail outlets. Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:34
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.