BuildABear Workshop (BBW) AI Stock Analysis

• Market Cap: $686.00M
• Dividend Yield: 1.52%
• Average Volume (3M): 284.58K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.77
• Revenue Growth: 6.16%
• EPS Growth: 15.74%
• Country: US
• Employees: 1,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.62
• Shares Outstanding: 12,945,819
• 10 Day Avg. Volume: 290,815
• 30 Day Avg. Volume: 284,580
• PEG Ratio: 3.14
• Price to Book (P/B): 4.13
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 20.70
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: 8.90
• 1Y Price Target: $70.00
• Price Target Upside: 33.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $60.00 ▲(14.22% Upside)

The score is driven primarily by strong financial performance (healthy margins, improved leverage, and solid cash generation) and supportive fundamentals from the latest earnings call (reaffirmed guidance and continued expansion). These positives are partially offset by weak technical signals (price below key moving averages with negative MACD) and ongoing cost/tariff headwinds.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term financial health.

Global Expansion

Expanding global footprint enhances market presence and diversifies revenue streams, reducing reliance on any single market.

Product Innovation

Successful product launches and collaborations drive customer engagement and brand loyalty, supporting sustained growth.

Negative Factors

Tariff Impacts

Tariff impacts increase costs and reduce profitability, potentially affecting future financial performance if not mitigated.

Higher Costs and Expenses

Rising operational costs can pressure margins and limit profitability, necessitating efficiency improvements to maintain earnings.

Debt Levels

Moderate leverage may limit financial flexibility, requiring careful management to avoid constraints on growth initiatives.

BuildABear Workshop Business Overview & Revenue Model

Company Description

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. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce sites. As of January 29, 2022, it operated 346 stores, including 305 stores in the United States and Canada; and 41 stores in the United Kingdom and Ireland, as well as 72 franchised stores internationally. The company was founded in 1997 and is headquartered in St. Louis, Missouri.

How the Company Makes Money

Build-A-Bear Workshop generates revenue primarily through the sale of its customizable stuffed animals and associated merchandise. Key revenue streams include in-store sales, online orders, and special events such as birthday parties. The company also benefits from partnerships with various franchises and brands, allowing it to create themed products that attract a wider audience. Seasonal promotions and limited-edition offerings further enhance sales, while the company's loyalty program encourages repeat business, contributing to a stable revenue base.

BuildABear Workshop Financial Statement Overview

Summary

Strong profitability and recovery (TTM gross margin ~56%, net margin ~11%) with revenue scaling to ~$526M TTM. Balance sheet leverage has improved meaningfully (debt-to-equity ~0.70–0.78x), but debt remains material for a cyclical retailer. Cash flow is solid (TTM FCF ~$37M) yet shows recent FCF growth decline and some conversion volatility.

Income Statement

Profitability is strong and consistent in recent periods, with TTM (Trailing-Twelve-Months) gross margin ~56% and net margin ~11%, supported by solid operating profitability. Revenue has expanded from ~$255M (2021) to ~$496M (2025 annual) and ~$526M TTM, and the latest TTM revenue growth rate is very strong (though likely benefitting from easier compares). The main weakness is historical volatility: 2021 showed meaningful losses and negative margins, highlighting sensitivity to demand cycles and cost pressures.

Balance Sheet

Leverage has improved markedly versus 2021, with debt-to-equity down from ~2.0x (2021) to ~0.70–0.78x (2025 annual/TTM), and equity has grown alongside the business. Returns on equity are very high (~37%–41% in 2023–TTM), indicating strong earnings power. The key risk is that leverage is still material for a specialty retailer (TTM debt ~$118M vs. equity ~$151M), which can pressure flexibility if sales soften.

Cash Flow

Cash generation is solid, with TTM operating cash flow of ~$59.8M and free cash flow of ~$37.2M, and free cash flow running at ~70% of net income—generally good conversion. However, free cash flow growth is negative in the latest TTM period, and operating cash flow relative to net income is below 1.0x in recent periods, suggesting working-capital swings or timing effects can dampen reported cash performance.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	525.77M	496.40M	486.11M	467.94M	411.52M	255.31M
Gross Profit	295.46M	272.52M	264.39M	245.87M	217.96M	97.29M
EBITDA	87.68M	81.05M	79.06M	75.03M	62.98M	-6.88M
Net Income	57.49M	51.78M	52.80M	47.98M	47.27M	-24.61M
Balance Sheet
Total Assets	326.50M	289.96M	272.32M	280.79M	266.32M	261.37M
Cash, Cash Equivalents and Short-Term Investments	27.74M	27.76M	44.33M	42.20M	32.84M	34.84M
Total Debt	118.21M	97.00M	83.57M	86.52M	97.76M	133.86M
Total Liabilities	175.88M	150.87M	142.66M	161.68M	175.27M	195.69M
Stockholders Equity	150.62M	139.08M	129.66M	119.12M	93.68M	65.68M
Cash Flow
Free Cash Flow	37.15M	27.77M	46.02M	33.64M	19.95M	8.34M
Operating Cash Flow	59.77M	47.09M	64.31M	47.28M	28.08M	13.39M
Investing Cash Flow	-22.62M	-19.32M	-18.30M	-13.63M	-8.13M	-5.05M
Financing Cash Flow	-38.26M	-44.16M	-43.90M	-25.06M	-22.46M	-114.00K

BuildABear Workshop Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.53
• 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 BBW, the sentiment is Negative. The current price of 52.53 is below the 20-day moving average (MA) of 56.62, below the 50-day MA of 58.87, and below the 200-day MA of 54.95, indicating a bearish trend. The MACD of -2.73 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 40.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBW.

BuildABear Workshop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBW	70 Outperform	$686.00M	12.18	41.18%	1.52%	6.16%	15.74%
SBH	64 Neutral	$1.52B	8.95	24.38%	―	-0.42%	31.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TDUP	51 Neutral	$586.92M	-15.48	-35.37%	―	-4.90%	50.77%
FLWS	50 Neutral	$211.42M	-0.98	-67.22%	―	-8.07%	-2206.16%
BNED	49 Neutral	$274.70M	-31.36	-3.86%	―	1.38%	63.65%
YSG	48 Neutral	$386.36M	-5.96	-13.99%	―	22.58%	33.18%

BuildABear Workshop Corporate Events

Build-A-Bear Adds Veteran Retail Leader to Board

On February 10, 2026, Build-A-Bear Workshop, Inc. appointed veteran consumer and retail executive James A. Goldman to its Board of Directors, effective immediately, following an extensive search process. Non-Executive Chairman Craig Leavitt said the board expects Goldman’s background leading global retail and branded consumer businesses to support the company’s long-term strategic initiatives and shareholder value ambitions.

Goldman brings current board experience at Domino’s Pizza, Abercrombie & Fitch and several Eurazeo SE portfolio companies, as well as advisory work with private equity firm Frontenac, adding deep governance and strategic expertise to Build-A-Bear’s board. His prior leadership roles at Godiva Chocolatier, Campbell Soup and Nabisco, along with nonprofit board service, signal a reinforcement of Build-A-Bear’s governance bench as it continues expanding its experiential retail, licensing and entertainment platforms.

The most recent analyst rating on (BBW) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on BuildABear Workshop stock, see the BBW Stock Forecast page.

Build-A-Bear Expands and Extends Revolving Credit Facility

On December 31, 2025, Build-A-Bear Workshop, Inc. and certain subsidiaries entered into a Third Amendment to their Revolving Credit and Security Agreement with a lender group led by PNC Bank, increasing the base borrowing capacity of the senior secured revolving credit facility from $25 million to $40 million, retaining an accordion feature permitting expansion up to $50 million, extending the facility’s maturity to December 31, 2030, lowering interest rates on borrowings and cutting the undrawn facility fee from 0.25% to 0.20%. The amended facility continues to be secured by a first-priority lien on substantially all personal property of the company and its U.S. and Canadian subsidiaries, maintains existing financial and negative covenants and customary events of default, and increases the loan cap while keeping a borrowing base tied to eligible receivables and inventory; at the time of the amendment the company had no outstanding borrowings under the facility and was in compliance with its covenants, signaling enhanced financial flexibility and liquidity headroom without an immediate rise in leverage for stakeholders.

The most recent analyst rating on (BBW) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on BuildABear Workshop stock, see the BBW Stock Forecast page.

Build-A-Bear Workshop Declares Quarterly Cash Dividend

On November 12, 2025, Build-A-Bear Workshop, Inc. announced a quarterly cash dividend of $0.22 per share, payable on January 8, 2026, to shareholders of record as of November 26, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial strategy and stakeholder relations.

The most recent analyst rating on (BBW) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on BuildABear Workshop stock, see the BBW Stock Forecast page.