BuildABear Workshop (BBW) AI Stock Analysis

• Market Cap: $940.49M
• Dividend Yield: 1.13%
• Average Volume (3M): 384.13K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.66
• Revenue Growth: 8.10%
• EPS Growth: 25.56%
• Country: US
• Employees: 1,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.94
• Shares Outstanding: 13,126,157
• 10 Day Avg. Volume: 516,700
• 30 Day Avg. Volume: 384,127
• 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: 0.76
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: 7.97
• 1Y Price Target: $72.50
• Price Target Upside: -2.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: $77.00 ▲(3.76% Upside)

Build-A-Bear Workshop's strong financial performance and positive earnings call are the most significant factors driving the stock score. While technical indicators suggest potential for a short-term pullback, the company's robust growth and strategic initiatives support a positive outlook.

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 through multiple streams, primarily through the sales of its customizable stuffed animals and related accessories. The company operates a franchise model, allowing it to expand its footprint while also earning royalties from franchisees. Key revenue streams include in-store sales, online sales, and special events like birthday parties and workshops. Additionally, BBW has partnerships with various brands and franchises, allowing them to create themed plush toys that appeal to a broader audience, which in turn drives sales. Seasonal promotions and limited-edition products also contribute to revenue, as they create urgency and excitement among consumers. Overall, the company's focus on experiential retail and customization plays a significant role in its ability to attract and retain customers.

BuildABear Workshop Financial Statement Overview

Summary

Build-A-Bear Workshop demonstrates strong financial performance with robust revenue and profit growth, efficient operations, and solid cash flow generation. The company maintains a balanced capital structure with moderate leverage and effective cash management.

Income Statement

The income statement reveals strong profitability with a Gross Profit Margin of 55.55% and a Net Profit Margin of 10.91% for TTM (Trailing-Twelve-Months). Revenue has shown consistent growth, with a 4.54% increase in the latest annual period. The EBIT and EBITDA margins are healthy at 13.94% and 16.85% respectively, indicating efficient operations. The company has demonstrated strong revenue growth and profitability improvement over the years.

Balance Sheet

The balance sheet shows a stable financial position with a Debt-to-Equity Ratio of 0.67 for TTM, highlighting a moderate leverage level. The Return on Equity (ROE) is robust at 37.43%, indicating effective utilization of equity. The Equity Ratio stands at 48.23%, suggesting a balanced approach between debt and equity financing. The company maintains a solid equity base while managing debt efficiently.

Cash Flow

The cash flow statement demonstrates strong cash generation with a Free Cash Flow Growth Rate of 61.09% in the latest TTM period. The Operating Cash Flow to Net Income Ratio is 1.16, indicating effective cash management relative to earnings. The Free Cash Flow to Net Income Ratio of 0.80 shows a healthy conversion of earnings into free cash. The company exhibits strong cash flow management and growth.

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	61.94M	50.70M	-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	45.95M	27.77M	46.02M	33.64M	19.95M	8.34M
Operating Cash Flow	62.48M	47.09M	64.31M	47.28M	28.08M	13.39M
Investing Cash Flow	-16.52M	-19.32M	-18.30M	-13.63M	-8.13M	-5.05M
Financing Cash Flow	-26.70M	-44.16M	-43.90M	-25.06M	-22.46M	-114.00K

BuildABear Workshop Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 74.21 is above the 20-day moving average (MA) of 65.84, above the 50-day MA of 57.80, and above the 200-day MA of 45.55, indicating a bullish trend. The MACD of 5.24 indicates Negative momentum. The RSI at 66.76 is Neutral, neither overbought nor oversold. The STOCH value of 83.07 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	79 Outperform	$940.49M	16.73	42.13%	1.13%	8.10%	25.56%
SBH	73 Outperform	1.51B	8.38	25.43%	―	-0.38%	35.78%
TDUP	63 Neutral	1.29B	-21.47	-94.46%	―	-10.39%	14.92%
YSG	51 Neutral	936.61M	-12.85	-23.18%	―	11.67%	31.55%
BNED	50 Neutral	300.01M	-0.16	0.00%	―	1.38%	63.65%
FLWS	44 Neutral	334.00M	-1.79	-74.55%	―	-7.96%	-3078.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

BuildABear Workshop Corporate Events

Build-A-Bear Workshop Highlights Financial Metrics to Investors

Build-A-Bear Workshop, Inc. has prepared an investor presentation highlighting certain financial metrics and intends to present this information to investors at various conferences. The company is utilizing non-GAAP financial measures to provide a clearer picture of its operational performance, aiming to facilitate better comparisons across different periods.

Build-A-Bear Workshop Announces Leadership Transition

On August 1, 2025, Build-A-Bear Workshop announced the retirement of Eric Fencl, its Chief Administrative Officer, General Counsel, and Secretary, effective August 4, 2025. Yevgeny Fundler was appointed as the new Chief Legal Officer and Secretary, bringing extensive legal and corporate governance experience to the role. This leadership transition is expected to impact the company’s legal and compliance operations positively, with Mr. Fencl assisting during the transition period until December 5, 2025.

Build-A-Bear Workshop Holds Annual Stockholders Meeting

On June 12, 2025, Build-A-Bear Workshop held its Annual Meeting of Stockholders, where key proposals were voted on. Two directors, Richard Johnson and Craig Leavitt, were elected for three-year terms, and Ernst & Young LLP’s appointment as independent accountants was ratified. Additionally, the stockholders approved the executive compensation plan. Following the meeting, the Board reduced its size to six members after Robert Dixon’s term expired.

BuildABear Workshop Declares Quarterly Cash Dividend

On June 12, 2025, Build-A-Bear Workshop, Inc. announced a quarterly cash dividend of $0.22 per share, payable on July 10, 2025, to shareholders of record as of June 26, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial operations and stakeholder relations.