BAB (BABB) AI Stock Analysis

• Market Cap: $7.16M
• Dividend Yield: 6.69%
• Average Volume (3M): 12.64K
• Price to Earnings (P/E): 12.8
• 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: 0.77
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: 7.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $1.00 ▼(-0.99% Downside)

The score is driven primarily by strong financial performance (profitability, improving margins, and solid cash generation) and supportive valuation (moderate P/E with a high dividend yield). Technicals are positive but tempered by overbought momentum signals, which add near-term risk.

Positive Factors

Profitability and Margins

The company's strong profitability and improving margins indicate effective cost management and operational efficiency, supporting long-term financial health.

Cash Generation

Strong cash generation capabilities provide the company with the flexibility to invest in growth opportunities and weather economic downturns, enhancing its resilience.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, reducing risk and providing stability, which is crucial for long-term sustainability.

Negative Factors

Revenue Growth Decline

A decline in revenue growth could signal challenges in market expansion or product adoption, potentially impacting future profitability and market position.

Operating Cash Flow Volatility

Volatile operating cash flow can complicate financial planning and investment, potentially affecting the company's ability to maintain consistent operations.

Total Assets Decline

A decline in total assets may indicate underinvestment or asset liquidation, which could impact the company's ability to grow and compete effectively.

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

Strong profitability and improving net margins, with consistent revenue growth and robust EBIT/EBITDA margins. Balance sheet leverage is low with healthy ROE, and cash generation is solid, though operating cash flow shows some volatility and total assets have slightly declined.

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	Nov 2024	Nov 2023	Nov 2022	Nov 2021	Nov 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: Positive
• Last Price: 1.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1.01 is above the 20-day moving average (MA) of 0.96, above the 50-day MA of 0.94, and above the 200-day MA of 0.88, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BABB.

BAB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BABB	81 Outperform	$7.16M	12.79	16.66%	6.69%	-7.46%	2.95%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PETZ	52 Neutral	$11.56M	6.82	6.15%	―	-39.41%	―
SOWG	48 Neutral	$5.39M	-0.23	-84.22%	―	-81.88%	-672.01%
BON	46 Neutral	$13.41M	-5.89	1.32%	―	-15.44%	-94.04%
HCWC	46 Neutral	$4.76M	―	―	―	―	―
FAMI	42 Neutral	$18.44M	-0.04	-3.22%	―	-49.19%	-394.71%

BAB Corporate Events

BAB Amends Preferred Shares Rights Agreement

On November 19, 2025, BAB‘s Board of Directors approved an amendment to the company’s Preferred Shares Rights Agreement, initially established on May 6, 2013. This amendment changes the ‘Final Expiration Date’ to the sixteenth anniversary of the original agreement, potentially impacting the company’s shareholder rights and governance structure.

The most recent analyst rating on (BABB) stock is a Buy with a $1.00 price target. To see the full list of analyst forecasts on BAB stock, see the BABB Stock Forecast page.