BAB (BABB) AI Stock Analysis

• Market Cap: $6.63M
• Dividend Yield: 7.17%
• Average Volume (3M): 12.64K
• Price to Earnings (P/E): 11.9
• Beta (1Y): <0.01
• Revenue Growth: -7.46%
• EPS Growth: 2.95%
• Country: US
• Employees: 11
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.02
• Shares Outstanding: 7,264,000
• 10 Day Avg. Volume: 17,558
• 30 Day Avg. Volume: 12,642
• PEG Ratio: 0.89
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 9.13
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 1.47
• Enterprise Value/Gross Profit: 1.55
• Enterprise Value/Ebitda: 6.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $1.00 ▲(19.05% Upside)

BABB's strong financial performance is the most significant factor, highlighting robust profitability and growth potential. However, technical analysis indicates bearish momentum, which is a concern. The stock's valuation is reasonable, with an attractive dividend yield, supporting its overall score.

Positive Factors

Profit Margins

High profit margins suggest effective cost management and pricing power, which can sustain profitability even in competitive markets.

Cash Flow Generation

Strong cash flow generation provides flexibility for investments, debt reduction, and shareholder returns, supporting long-term business stability.

Low Financial Leverage

Low financial leverage reduces risk and increases financial stability, allowing the company to navigate economic downturns more effectively.

Negative Factors

Revenue Decline

Despite past growth, the recent revenue decline suggests potential challenges in maintaining market share or product demand, impacting future growth.

Asset Reduction

A reduction in total assets may signal divestments or reduced investment in growth opportunities, potentially limiting future expansion.

Operating Cash Flow Volatility

Volatile operating cash flow can complicate financial planning and may indicate underlying business instability, affecting long-term operational efficiency.

BAB Business Overview & Revenue Model

Company Description

BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. It's BAB franchised brand consists of daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products. The company's MFM brand comprise of various freshly baked muffins and coffees; and units operating as My Favorite Muffin Your All Day Bakery Café featuring specialty bagel sandwiches and related products. Its SD brand includes frozen yogurt products. As of November 30, 2021, the company had 68 franchise units and 4 licensed units in operation in 20 states. BAB, Inc. was incorporated in 2000 and is based in Deerfield, Illinois.

How the Company Makes Money

BAB generates revenue primarily through transaction fees associated with its digital banking services and DeFi solutions. Each transaction processed on the platform incurs a fee, contributing to a steady revenue stream. Additionally, the company leverages subscription models for premium services offered to users, providing ongoing income. Strategic partnerships with financial institutions and technology providers also bolster revenue, as they create opportunities for co-branded services and expanded market reach. These collaborations may include revenue-sharing agreements, further enhancing its financial performance.

BAB Financial Statement Overview

Summary

BAB demonstrates strong financial health with robust profit margins, effective cost management, and strong equity positions. The income statement shows significant profitability improvements, while the balance sheet indicates low financial leverage. Cash flow is solid, though there are some fluctuations to monitor.

Income Statement

The company shows a strong gross profit margin close to 100%, indicating efficient cost management. The net profit margin has improved significantly from negative in 2020 to positive in 2025 TTM, reflecting enhanced profitability. Revenue growth has been consistent, with a notable increase from 2020 to 2025. EBIT and EBITDA margins are robust, highlighting operational efficiency. The overall trajectory is positive, showing strong profitability and growth.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio indicating low financial leverage. The return on equity is healthy, suggesting effective use of equity to generate profits. The equity ratio is strong, reflecting a stable financial position with substantial equity backing assets. However, the slight decrease in total assets in recent years indicates a need for monitoring.

Cash Flow

Cash flow performance is solid with consistent free cash flow growth, indicating strong cash generation capabilities. The operating cash flow to net income ratio suggests efficient cash conversion from profits. The free cash flow to net income ratio is also positive, highlighting good cash availability to support operations and investments. However, fluctuations in operating cash flow between years suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.29M	3.55M	3.51M	3.29M	3.07M	2.37M
Gross Profit	3.10M	3.55M	3.51M	3.18M	2.09M	1.70M
EBITDA	749.19K	681.08K	618.58K	612.21K	874.72K	236.95K
Net Income	558.87K	525.20K	467.32K	431.99K	651.12K	-66.17K
Balance Sheet
Total Assets	4.92M	4.84M	4.30M	4.29M	4.46M	4.09M
Cash, Cash Equivalents and Short-Term Investments	2.03M	2.18M	1.89M	1.62M	1.46M	1.24M
Total Debt	346.82K	378.06K	39.82K	153.70K	260.09K	587.40K
Total Liabilities	1.50M	1.50M	1.12M	1.22M	1.53M	1.52M
Stockholders Equity	3.42M	3.34M	3.18M	3.08M	2.93M	2.57M
Cash Flow
Free Cash Flow	666.11K	636.70K	533.19K	135.04K	715.77K	199.64K
Operating Cash Flow	674.68K	637.75K	534.37K	135.04K	718.30K	212.92K
Investing Cash Flow	-12.97K	-9.96K	-1.18K	0.00	-2.52K	-13.28K
Financing Cash Flow	-435.81K	-363.18K	-363.18K	-290.54K	-290.54K	-62.38K

BAB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BABB, the sentiment is Negative. The current price of 0.84 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 0.94, and below the 200-day MA of 0.86, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 31.33 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BABB.

BAB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BABB	66 Neutral	$6.63M	11.87	16.66%	7.17%	-7.46%	2.95%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BON	52 Neutral	$13.56M	0.63	1.32%	―	-15.44%	-94.04%
HCWC	44 Neutral	$9.14M	―	―	―	―	―
SOWG	43 Neutral	$8.80M	-0.55	-84.22%	―	-81.88%	-672.01%
FAMI	42 Neutral	$1.91M	-0.16	-3.22%	―	-49.19%	-394.71%
PETZ	29 Underperform	$10.94M	5.19	6.15%	―	-39.41%	―