BuildABear Workshop (BBW) AI Stock Analysis

• Market Cap: $717.48M
• Dividend Yield: 1.57%
• Average Volume (3M): 383.40K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.59
• 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: 284,026
• 30 Day Avg. Volume: 383,397
• 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: 1.00
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: 7.97
• 1Y Price Target: $72.50
• Price Target Upside: 32.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $67.00 ▲(22.58% Upside)

Build-A-Bear Workshop's overall stock score is driven by its strong financial performance and positive earnings call, reflecting robust growth and expansion. However, bearish technical indicators and potential economic challenges temper the outlook. The valuation suggests the stock may be undervalued, providing a potential opportunity for investors.

BuildABear Workshop Business Overview & Revenue Model

Company Description

Build-A-Bear Workshop (BBW) is a global retail entertainment brand that specializes in the creation of personalized stuffed animals and accessories. Founded in 1997, the company operates in the retail sector, focusing on experiences that allow customers, primarily children and families, to create their own custom plush toys. BBW offers a unique in-store experience where guests can select a stuffed animal, fill it with stuffing, and personalize it with clothing and accessories, making each creation a one-of-a-kind product. In addition to its physical locations, the company also has a robust online platform that enables customers to shop for products and create custom bears from home.

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 equity utilization.

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: Negative
• Last Price: 54.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 54.66 is below the 20-day moving average (MA) of 57.57, below the 50-day MA of 63.19, and above the 200-day MA of 48.29, indicating a neutral trend. The MACD of -2.47 indicates Positive momentum. The RSI at 33.16 is Neutral, neither overbought nor oversold. The STOCH value of 19.77 is Positive, 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	―	$717.48M	12.32	42.13%	1.57%	8.10%	25.56%
SBH	―	$1.43B	7.81	28.94%	―	-0.38%	35.78%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TDUP	―	$1.11B	―	-58.93%	―	-10.39%	14.92%
BNED	―	$306.48M	―	―	―	1.38%	63.65%
YSG	―	$714.19M	-9.67	-15.44%	―	11.67%	31.55%
FLWS	―	$230.30M	-1.15	-54.45%	―	-7.96%	-3078.36%

BuildABear Workshop Corporate Events

Build-A-Bear Workshop Announces Quarterly Cash Dividend

On September 10, 2025, Build-A-Bear Workshop, Inc. announced a quarterly cash dividend of $0.22 per share, payable on October 9, 2025, to shareholders of record as of September 25, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial strategy and stakeholder interests.

The most recent analyst rating on (BBW) stock is a Buy with a $77.00 price target. To see the full list of analyst forecasts on BuildABear Workshop stock, see the BBW Stock Forecast page.

Build-A-Bear’s Record Earnings and Strategic Growth

Build-A-Bear Workshop, Inc. recently held its earnings call, revealing a strong performance with record-breaking revenue and earnings growth. The company showcased successful global expansion and effective digital transformation initiatives, although challenges from tariffs and potential economic uncertainties present notable headwinds.

Build-A-Bear Workshop Reports Record Earnings, Raises Guidance

Build-A-Bear Workshop, Inc. is a global retail company that allows customers to create personalized stuffed animals, operating in the entertainment and retail sector with a unique hands-on experience that fosters emotional connections with its brand. In its latest earnings report, Build-A-Bear Workshop announced record-breaking results for the second quarter and first half of fiscal 2025, with significant increases in revenue, pre-tax income, and earnings per share, prompting an upward revision of its annual guidance. Key financial highlights include a second-quarter revenue of $124.2 million, an 11.1% increase, and a pre-tax income of $15.3 million, reflecting a 32.7% growth. The company also reported a 46.9% increase in diluted earnings per share, reaching $0.94, and a robust EBITDA growth of 25.3%. For the first half of fiscal 2025, Build-A-Bear achieved total revenues of $252.6 million, marking an 11.5% rise, with a pre-tax income of $34.9 million, up by 31.5%. The company continues to expand its global footprint with a net growth of 14 new experience locations and maintains a strong balance sheet with increased cash reserves and no borrowings. Looking forward, Build-A-Bear Workshop remains optimistic about its growth prospects, focusing on global expansion and strategic initiatives, while navigating economic challenges, and has increased its guidance for revenue, pre-tax income, and new unit growth for the remainder of the fiscal year.

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.

The most recent analyst rating on (BBW) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on BuildABear Workshop stock, see the BBW Stock Forecast page.

Build-A-Bear Workshop 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.

The most recent analyst rating on (BBW) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on BuildABear Workshop stock, see the BBW Stock Forecast page.