When opportunity knocks, savvy investors listen, and Build-A-Bear Workshop is making quite the entrance. With a strong foothold in the specialty retail sector, BBW's fundamentals paint a compelling picture. The company boasts a robust EBITDA of $79.76M, highlighting its operational efficiency, while its net income of $52.8M underscores profitability. The return on equity stands at an impressive 42.88%, suggesting that the company is effectively using its shareholders' investments to generate earnings. With a forward dividend yield of 2.1% and a forward dividend rate of $0.8, income-focused investors have something to smile about. The price-to-earnings-to-growth ratio of 0.55X indicates that the stock might be undervalued relative to its growth potential. Coupled with a strong buy consensus from analysts, BBW presents a strategic buying opportunity for those looking to capitalize on the current market rally. Build-A-Bear Workshop's income quality remains stable compared to last year. In 2024, the company's EV to Operating Cash Flow is expected to rise to 11.23, while its Enterprise Value may slightly decrease to just over $179.8 million. A key part of choosing profitable investments is understanding an asset's growth potential before purchasing its shares. This discussion highlights Build-A-Bear's prospects. The company's risk of financial distress is under 8%. Will experienced investors continue to show interest in January?
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Build A income statement, its balance sheet, and the statement of cash flows. Potential Build A investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Build A investors may use each financial statement separately, they are all related. The changes in Build A's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Build A's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Build A
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Build A performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Build A shares is the value that is considered the true value of the share. If
the intrinsic value of Build is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Build A. Please read more on our
fundamental analysis page.
How effective is Build A in utilizing its assets?
Build A Bear Workshop reports assets on its Balance Sheet. It represents the amount of Build resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Build A aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Other Specialty Retail space. To get a better handle on how balance sheet or income statements item affect Build volatility, please check the breakdown of all its
fundamentals.
Are Build A Earnings Expected to grow?
The
future earnings power of Build A involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Build A factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Build A
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Build
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Build A earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Build A dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Build one year expected dividend income is about USD0.77 per share.
At this time, Build A's
Dividends Paid is fairly stable compared to the past year.
Dividend Yield is likely to climb to 0.07 in 2024, whereas
Dividend Paid And Capex Coverage Ratio is likely to drop 0.59 in 2024.
Investing in stocks that pay
dividends, such as stock of Build A Bear Workshop, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Build A must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Build A. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Build A Gross Profit
Build A Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Build A previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Build A Gross Profit growth over the last 10 years. Please check Build A's
gross profit and other
fundamental indicators for more details.
Breaking down Build A Further
Institutional investors typically avoid acquiring a high percentage of Build A stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Build is distributed among investors.
Ownership Allocation
The
market capitalization of Build A Bear is $512.59 Million. The majority of Build A Bear Workshop
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Build A Bear to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Build A. Please pay attention to any change in the institutional holdings of Build A Bear Workshop as this could imply that something significant has changed or is about to change at the company. Also note that nearly one hundred seventeen thousand six hundred four invesors are currently shorting Build A expressing very little confidence in its future performance.
| Insiders6.18% | Institutions94.69% |
| Retail Investors | -0.87 |
| Insiders | 6.18 |
| Institutions | 94.69 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Build A's decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Build A's decisions due to their larger holdings.
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Build A has an asset utilization ratio of 178.51 percent. This indicates that the Company is making $1.79 for each dollar of assets. An increasing asset utilization means that Build A Bear Workshop is more efficient with each dollar of assets it utilizes for everyday operations.
| Total Current Assets123.9 M | Non Current Assets Total128.4 M | | | | Net Tangible Assets114.4 M |
| Other Assets | 6.99 Million | 1.76 |
| Total Current Assets | 123.89 Million | 31.23 |
| Non Current Assets Total | 128.44 Million | 32.37 |
| Non Currrent Assets Other | 7.52 Million | 1.9 |
| Other Current Assets | 15.48 Million | 3.9 |
| Intangible Assets | 0.0 | 0.0 |
| Net Tangible Assets | 114.41 Million | 28.84 |
Warren Buffett once said that "price is what you pay, value is what you get," and this sentiment rings true for Build-A-Bear Workshop (NYSE: BBW) as it emerges as a strategic buying opportunity amid a market rally. With a PEG ratio of 0.55, the stock is attractively valued, suggesting that its growth potential is not fully reflected in its current price. The company boasts a healthy current ratio of 1.31, indicating strong liquidity to cover its short-term obligations. Additionally, with a robust net income of $52.8 million and a profit margin of 0.10%, Build-A-Bear is demonstrating solid financial performance. As the specialty retail industry continues to evolve, BBW's fundamentals position it well for potential upside, making it a compelling consideration for investors seeking value in a rallying market.
Build A has 88 percent chance to finish below $39 next week
Build-A-Bear Workshop's kurtosis indicator recently dropped to -0.19, hinting at a potential shift towards more stable price movements. While this might suggest a possible price increase, it's crucial to look at the bigger picture. There's an 88% chance the stock will stay below $39 next week, urging investors to be cautious. This statistic points to a conservative short-term outlook despite some upward potential. Always consider these indicators alongside other market factors before making trading decisions. Currently, Build-A-Bear shows below-average downside deviation, with an Information Ratio of 0.04 and a Jensen Alpha of 0.06.
Understanding market volatility trends can help investors time their trades. In bear markets, increased volatility can affect stock prices, prompting investors to adjust their portfolios as prices drop.Despite the broader market's upward momentum, Build-A-Bear Workshop (BBW) has experienced a downturn, leaving investors to ponder its potential. With an analyst target price estimated at 39.67 and a strong buy consensus, there is optimism about the stock's future performance. However, the current valuation real value of 35.48 suggests a more cautious approach might be warranted. As the fiscal year ends in January, investors should keep an eye on upcoming financial reports and market conditions to make informed decisions. While the stock's recent slide may be concerning, the underlying fundamentals and analyst confidence could indicate a promising opportunity for those willing to weather short-term volatility..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Build A Bear Workshop. Please refer to our
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