BuildABear Workshop (BBW) AI Stock Analysis

• Market Cap: $919.54M
• Dividend Yield: 1.52%
• Average Volume (3M): 425.43K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.70
• 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: 326,187
• 30 Day Avg. Volume: 425,426
• 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: 0.78
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 2.43
• Enterprise Value/Ebitda: 7.96
• 1Y Price Target: $70.00
• Price Target Upside: -0.88% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4
• Revenue Forecast (FY): $535.14M

• Rating: 80 Outperform
• Price Target: $82.00 ▲(16.11% Upside)

The score is driven primarily by strong financial performance (high margins, solid cash conversion, and stable leverage) and constructive technicals (price above major moving averages with positive MACD). Valuation is reasonable (P/E ~14 with a 1.44% yield). Earnings call commentary supports continued growth and reaffirmed guidance, with tariffs and cost inflation as the main near-term headwinds; corporate events add incremental support via improved credit flexibility.

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 fundamentals across statements: healthy profitability (TTM gross margin 56.20%, net margin 10.93%) and solid cash generation (OCF/NI 0.80; FCF growth 4.51%). Balance sheet is stable with moderate leverage (D/E 0.78) and strong ROE (38.73%).

Income Statement

BuildABear Workshop has shown consistent revenue growth, with a TTM revenue growth rate of 2.44%. The company maintains strong profitability metrics, with a gross profit margin of 56.20% and a net profit margin of 10.93% in the TTM. EBIT and EBITDA margins are also healthy at 11.81% and 15.93%, respectively. These figures indicate a robust income statement performance, driven by effective cost management and revenue expansion.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.78, indicating moderate leverage. The return on equity is strong at 38.73%, showcasing efficient use of equity to generate profits. The equity ratio stands at 48.82%, suggesting a balanced capital structure. Overall, the balance sheet demonstrates financial stability with manageable debt levels and strong equity returns.

Cash Flow

Cash flow analysis reveals a positive trajectory, with a free cash flow growth rate of 4.51% in the TTM. The operating cash flow to net income ratio is 0.80, indicating solid cash generation relative to net income. The free cash flow to net income ratio is 0.70, reflecting efficient conversion of earnings into cash. These metrics highlight a healthy cash flow position, supporting ongoing operations and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	522.52M	496.40M	486.11M	467.94M	411.52M	255.31M
Gross Profit	294.28M	272.52M	264.39M	245.87M	217.96M	97.29M
EBITDA	89.92M	81.05M	79.06M	75.03M	62.98M	-6.88M
Net Income	59.23M	51.78M	52.80M	47.98M	47.27M	-24.61M
Balance Sheet
Total Assets	318.24M	289.96M	272.32M	280.79M	268.95M	261.37M
Cash, Cash Equivalents and Short-Term Investments	39.11M	27.76M	44.33M	42.20M	32.84M	34.84M
Total Debt	107.36M	97.00M	83.57M	86.52M	97.76M	133.86M
Total Liabilities	162.84M	150.87M	142.66M	161.68M	175.27M	195.69M
Stockholders Equity	155.40M	139.08M	129.66M	119.12M	93.68M	65.68M
Cash Flow
Free Cash Flow	46.75M	27.77M	46.02M	33.64M	19.95M	8.34M
Operating Cash Flow	66.69M	47.09M	64.31M	47.28M	28.08M	13.39M
Investing Cash Flow	-19.95M	-19.32M	-18.30M	-13.63M	-8.13M	-5.05M
Financing Cash Flow	-32.72M	-44.16M	-43.90M	-25.06M	-22.46M	-114.00K

BuildABear Workshop Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBW, the sentiment is Positive. The current price of 70.62 is above the 20-day moving average (MA) of 62.99, above the 50-day MA of 55.57, and above the 200-day MA of 52.55, indicating a bullish trend. The MACD of 4.28 indicates Negative momentum. The RSI at 77.32 is Negative, neither overbought nor oversold. The STOCH value of 90.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBW.

BuildABear Workshop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBW	80 Outperform	$919.54M	16.32	41.18%	1.52%	6.16%	15.74%
SBH	76 Outperform	$1.56B	8.18	27.54%	―	-0.42%	31.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TDUP	54 Neutral	$710.81M	-17.92	-35.37%	―	-4.90%	50.77%
FLWS	51 Neutral	$296.69M	-1.38	-67.22%	―	-8.07%	-2206.16%
BNED	49 Neutral	$304.44M	-1.47	―	―	1.38%	63.65%
YSG	48 Neutral	$404.22M	-5.89	-13.99%	―	22.58%	33.18%

BuildABear Workshop Corporate Events

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.