BuildABear Workshop (BBW) AI Stock Analysis

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BuildABear Workshop

(NYSE:BBW)

75Outperform

Build-A-Bear Workshop shows strong financial performance with solid revenue growth and profitability, balanced by a stable financial structure. Technical analysis indicates some positive momentum, while valuation metrics suggest the stock is fairly priced. Despite positive earnings results, revised guidance due to macroeconomic challenges slightly tempers the outlook.

BuildABear Workshop (BBW) vs. S&P 500 (SPY)

Market Cap

$486.52M

Dividend Yield2.27%

Average Volume (3M)307.16K

Price to Earnings (P/E)9.5

Beta (1Y)0.59

Revenue Growth2.76%

EPS Growth6.81%

CountryUS

Employees1,000

SectorConsumer Cyclical

Sector Strength63

IndustrySpecialty Retail

Share Statistics

EPS (TTM)3.81

Shares Outstanding13,439,903

10 Day Avg. Volume304,252

30 Day Avg. Volume307,161

Financial Highlights & Ratios

PEG Ratio2.52

Price to Book (P/B)N/A

Price to Sales (P/S)1.01

Price to Cash Flow (P/CF)8.30

P/FCF Ratio11.10

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$52.50

Price Target Upside45.03% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

BuildABear Workshop Business Overview & Revenue Model

Company DescriptionBuild-A-Bear Workshop (BBW) is a retail company specializing in customized stuffed animals and related products. Founded in 1997, the company operates through its stores in shopping centers, tourist locations, and its online platform. Core products include a variety of plush animals, clothing, and accessories that customers can personalize through a unique, interactive experience. The company also offers licensed products from popular franchises, enhancing its appeal to a broad audience.

How the Company Makes MoneyBuild-A-Bear Workshop generates revenue primarily through the sale of its customizable plush animals and related accessories, both in-store and online. Key revenue streams include direct sales from its retail locations, e-commerce sales, and licensing agreements with popular brands and franchises which allow the company to offer exclusive, themed products. The experiential aspect of the in-store process, where customers participate in creating their personalized stuffed animals, contributes significantly to its unique market position and customer loyalty. The company also benefits from partnerships with entertainment and media companies, leveraging popular characters to drive sales and attract diverse customer demographics.

BuildABear Workshop Financial Statement Overview

Summary

Build-A-Bear Workshop exhibits strong financial performance with a notable increase in revenue and profitability. The income statement shows a robust gross profit margin of 54.84% and a net profit margin of 10.57%. The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.77, while the cash flow demonstrates effective cash generation.

Income Statement

Very Positive

Build-A-Bear Workshop shows strong financial performance with a consistent increase in revenue and profitability. The TTM gross profit margin stands at 54.84%, and the net profit margin is 10.57%, indicating efficient cost management. The company has demonstrated robust revenue growth, with a notable increase of 20.70% from 2022 to 2023. EBIT and EBITDA margins of 13.06% and 16.11% respectively reflect solid operational efficiency.

Balance Sheet

Positive

The balance sheet of Build-A-Bear Workshop displays a healthy financial position with a debt-to-equity ratio of 0.77, indicating a balanced capital structure. The return on equity (ROE) is strong at 40.74%, showcasing effective utilization of shareholders' equity. The equity ratio of 44.96% reflects a stable financial foundation, although the total debt level warrants monitoring.

Cash Flow

Very Positive

The company's cash flow is robust, with a strong operating cash flow to net income ratio of 1.13, indicating effective cash generation from operations. Free cash flow has shown significant growth, rising by 25.99% from 2022 to 2023, underpinning the company's ability to fund operations and investments. The free cash flow to net income ratio of 0.81 suggests efficient cash flow management.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
495.24M	486.11M	467.94M	411.52M	255.31M	338.54M
	Gross Profit
271.59M	264.39M	245.87M	217.96M	97.29M	153.62M
	EBIT
64.68M	65.40M	49.46M	38.43M	-35.09M	-12.13M
	EBITDA
79.78M	79.06M	61.94M	50.70M	-6.88M	1.58M
	Net Income Common Stockholders
52.38M	52.80M	47.98M	47.27M	-24.61M	261.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.66M	44.33M	42.20M	32.84M	34.84M	26.73M
	Total Assets
252.87M	272.32M	280.79M	268.95M	261.37M	297.36M
	Total Debt
0.00	83.57M	86.52M	97.76M	133.86M	150.54M
	Net Debt
-24.66M	39.24M	44.32M	64.92M	99.02M	123.81M
	Total Liabilities
102.95M	142.66M	161.68M	175.27M	195.69M	208.63M
	Stockholders Equity
149.92M	129.66M	119.12M	93.68M	65.68M	88.73M
Cash Flow		Free Cash Flow
42.40M	46.02M	33.64M	19.95M	8.34M	9.22M
	Operating Cash Flow
59.15M	64.31M	47.28M	28.08M	13.39M	21.61M
	Investing Cash Flow
-16.74M	-18.30M	-13.63M	-8.13M	-5.05M	-12.38M
	Financing Cash Flow
-38.15M	-43.90M	-25.06M	-22.46M	-114.00K	-245.00K

BuildABear Workshop Technical Analysis

Technical Analysis Sentiment

Negative

Last Price36.20

Price Trends

50DMA

38.82

Negative

100DMA

39.77

Negative

200DMA

34.81

Positive

Market Momentum

MACD

-0.29

Negative

RSI

55.93

Neutral

STOCH

61.33

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBW, the sentiment is Negative. The current price of 36.2 is below the 20-day moving average (MA) of 37.07, below the 50-day MA of 38.82, and above the 200-day MA of 34.81, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 61.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBW.

BuildABear Workshop Risk Analysis

BuildABear Workshop disclosed 26 risk factors in its most recent earnings report. BuildABear Workshop reported the most risks in the “Ability to Sell” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

BuildABear Workshop Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAT	76 Outperform	$5.31B	10.32	24.55%	―	-1.13%	163.15%
BBW	75 Outperform	$486.52M	9.53	38.54%	2.27%	2.76%	6.81%
HAS	68 Neutral	$7.53B	19.63	34.75%	3.89%	-17.28%	―
JAKK	62 Neutral	$228.72M	6.54	15.57%	1.22%	-2.88%	-14.25%
Sector *	59 Neutral	$11.20B	10.09	-1.41%	3.96%	1.31%	-16.95%
PLBY	42 Neutral	$93.38M	―	-262.14%	―	-6.16%	57.51%

* Consumer Cyclical Sector Average

Performance Comparison

BBW

BuildABear Workshop

36.52

8.46

30.15%

HAS

Hasbro

53.96

-1.16

-2.10%

JAKK

Jakks Pacific

20.52

-1.74

-7.82%

MAT

Mattel

16.45

-2.90

-14.99%

PLBY

PLBY Group

0.96

-0.19

-16.52%

BuildABear Workshop Earnings Call Summary

Earnings Call Date: Mar 13, 2025 | % Change Since: 2.55% | Next Earnings Date: May 22, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a successful fiscal year with record-breaking revenue, expansion plans, and digital transformation progress. However, concerns regarding tariffs and e-commerce performance were noted.

Highlights

Record-Breaking Revenue and Growth

Fiscal 2024 marked the most successful year in the history of Build-A-Bear Workshop, Inc. with a revenue increase of 3.6% to over $496 million and a pretax income growth of 5.1% to over $67 million.

Expansion of Retail Footprint

Build-A-Bear expanded its global footprint by over 100 additional locations in the past two years, with 24 net new locations in 2024 and plans for at least 50 new net locations in 2025.

Digital Transformation and Omnichannel Advancements

The company made significant improvements in its omnichannel capabilities, including a tenfold increase in same-day shipped orders through Uber and double-digit growth in 'record-your-voice' online sales.

Increased Shareholder Returns

Build-A-Bear returned $42 million in capital to shareholders in 2024 and increased the quarterly dividend by 10% to $0.22 per share.

Successful New Initiatives and Products

The Mini Beans collection sold over 1.25 million units, and new product offerings like the Cougar Bear drove significant media attention and sales.

Lowlights

Tariff Concerns and Cost Pressures

The company faces challenges related to tariffs, inflationary pressures, and minimum wage increases, which could negatively impact results by upwards of $10 million in expenses for 2025.

E-commerce Performance

Although there was progress in digital transformation, the e-commerce segment did not perform as strongly as expected in the short term.

Company Guidance

During the Build-A-Bear Workshop, Inc. fourth quarter 2024 earnings call, the company announced record results, exceeding guidance for the year. Total revenues increased by 3.6% to over $496 million, while pretax income grew by 5.1% to exceed $67 million. The company returned $42 million in capital to shareholders, marking a strategic commitment to shareholder value. Build-A-Bear also expanded its global footprint with 24 new locations in 2024, including nine new corporately operated stores and 30 partner-operated international locations. Gross margin increased by 20 basis points to 56.6%, and SG&A expenses improved to 38.4% of total revenues. The company plans to continue its growth strategy by opening at least 50 new locations in 2025, with a focus on partner-operated international expansions. Despite geopolitical and economic challenges, including tariff concerns, Build-A-Bear is optimistic about achieving a fifth consecutive year of record revenue in 2025.

BuildABear Workshop Corporate Events

Executive/Board Changes

Build-A-Bear Workshop Appoints Richard Johnson to Board

Neutral

Mar 5, 2025

On March 5, 2025, Build-A-Bear Workshop appointed Richard A. Johnson, former CEO of Foot Locker, to its Board of Directors as an independent member. Johnson’s extensive retail experience is expected to contribute to the company’s strategic initiatives and shareholder value. He will serve on the Audit and Nominating and Corporate Governance Committees, receiving compensation consistent with other non-employee directors.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.