Build-A-Bear Workshop (NYSE:BBW) - Share price, News & Analysis

BBW fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

BBW Stock Overview

Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products.

Rewards

Trading at 45.3% below our estimate of its fair value

Became profitable this year

Risk Analysis

High level of non-cash earnings

Significant insider selling over the past 3 months

Build-A-Bear Workshop Competitors

Amazon.com

NasdaqGS:AMZN

US$1.1t

Walmart

NYSE:WMT

US$328.1b

Target

NYSE:TGT

US$72.0b

Hasbro

NasdaqGS:HAS

US$11.8b

Price History & Performance

Summary of all time highs, changes and price drops for Build-A-Bear Workshop
Historical stock prices
Current Share Price	US$18.75
52 Week High	US$23.50
52 Week Low	US$9.59
Beta	1.8
1 Month Change	4.87%
3 Month Change	-10.42%
1 Year Change	90.94%
3 Year Change	284.22%
5 Year Change	61.64%
Change since IPO	-25.15%

Recent News & Updates

May 19

Build-A-Bear, Build A Stuffed Investment

The Build-A-Bear Workshop is best described as an interactive retail-entertainment company. The company offers kids the opportunity to design and build their own stuffed animal. Build-A-Bear Workshop is an interesting company that—in my opinion—perfectly captures much of today’s culture including desire for experience, DIY and customization. The current valuation appears very cheap. Estimating 2024 revenues at $476 million and EPS at $2.73/share BBW would trade at a P/E of 6.92 and P/S significantly below 1. My valuation based on a residual earnings framework calculates a fair price per share of $27.68, implying more than 40% upside.

Apr 22

Build-A-Bear Workshop: Stellar Metrics, Deep Valuation And Strong Strategies

Build-A-Bear Workshop has attractive metrics including valuation and growth. The company has strong strategies for driving future growth. Build-A-Bear's stock outperformed the S&P 500 during the recent market turbulence and I expect this to continue.

Shareholder Returns

	BBW	US Specialty Retail	US Market
7D	-0.3%	-8.9%	-2.7%
1Y	90.9%	-28.3%	-12.9%

Return vs Industry: BBW exceeded the US Specialty Retail industry which returned -28.3% over the past year.

Return vs Market: BBW exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is BBW's price volatile compared to industry and market?
BBW volatility
BBW Average Weekly Movement	10.2%
Specialty Retail Industry Average Movement	8.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: BBW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: BBW's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	2,350	Sharon John	https://www.buildabear.com

Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes, accessories, and other toy and novelty items.

Build-A-Bear Workshop Fundamentals Summary

How do Build-A-Bear Workshop's earnings and revenue compare to its market cap?
BBW fundamental statistics
Market Cap	US$281.83m
Earnings (TTM)	US$47.27m
Revenue (TTM)	US$411.52m

6.0x

P/E Ratio

0.7x

P/S Ratio

Is BBW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBW income statement (TTM)
Revenue	US$411.52m
Cost of Revenue	US$193.57m
Gross Profit	US$217.96m
Other Expenses	US$170.69m
Earnings	US$47.27m

Last Reported Earnings

Jan 29, 2022

Next Earnings Date

May 26, 2022

Earnings per share (EPS)	3.14
Gross Margin	52.96%
Net Profit Margin	11.49%
Debt/Equity Ratio	0%

How did BBW perform over the long term?

See historical performance and comparison

Valuation

Is Build-A-Bear Workshop undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

45.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BBW ($18.75) is trading below our estimate of fair value ($34.26)

Significantly Below Fair Value: BBW is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: BBW is good value based on its PE Ratio (6x) compared to the US Specialty Retail industry average (6.3x).

PE vs Market: BBW is good value based on its PE Ratio (6x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: BBW is overvalued based on its PB Ratio (3x) compared to the US Specialty Retail industry average (1.7x).

Future Growth

How is Build-A-Bear Workshop forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.2%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BBW's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if BBW'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: BBW's revenue (7.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: BBW's revenue (7.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has Build-A-Bear Workshop performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

20.5%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: BBW became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: BBW's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: BBW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BBW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (75.3%).

Return on Equity

High ROE: BBW's Return on Equity (50.5%) is considered outstanding.

Financial Health

How is Build-A-Bear Workshop's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BBW's short term assets ($130.0M) exceed its short term liabilities ($97.4M).

Long Term Liabilities: BBW's short term assets ($130.0M) exceed its long term liabilities ($75.3M).

Debt to Equity History and Analysis

Debt Level: BBW is debt free.

Reducing Debt: BBW had no debt 5 years ago.

Debt Coverage: BBW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BBW has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Build-A-Bear Workshop current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BBW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BBW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BBW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BBW's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BBW has not reported any payouts.

Discover strong dividend paying companies

Management

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

8.3yrs

Average management tenure

CEO

Sharon John (57 yo)

8.92yrs

Tenure

US$3,019,320

Compensation

Ms. Sharon Price John has been President of Build-A-Bear Workshop, Inc since March 2016 and has been its Chief Executive Officer since June 3, 2013. Ms. John has experience and a strong track record of suc...

CEO Compensation Analysis

Compensation vs Market: Sharon's total compensation ($USD3.02M) is above average for companies of similar size in the US market ($USD1.67M).

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

Leadership Team

Experienced Management: BBW's management team is seasoned and experienced (8.3 years average tenure).

Board Members

Experienced Board: BBW's board of directors are considered experienced (4.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: BBW insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/01/29
Annual Earnings	2022/01/29