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Hamilton Beach Brands Holding Company (HBB)
NYSE:HBB
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Hamilton Beach Brands Holding Company (HBB) AI Stock Analysis

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HBB

Hamilton Beach Brands Holding Company

(NYSE:HBB)

Rating:68Neutral
Price Target:
$16.50
▲(15.79% Upside)
Hamilton Beach Brands Holding Company has a solid financial foundation and attractive valuation, but faces challenges in revenue and market conditions. Technical indicators suggest bearish momentum, while earnings call insights show potential for future growth despite current headwinds.

Hamilton Beach Brands Holding Company (HBB) vs. SPDR S&P 500 ETF (SPY)

Hamilton Beach Brands Holding Company Business Overview & Revenue Model

Company DescriptionHamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances in the United States and internationally. It offers air fryers, blenders, food processors, coffee makers, indoor electric grills, irons, juicers, mixers, slow cookers, toasters, and toaster ovens. The company also provides air purifiers under the TrueAir brand; consumer products under the Hamilton Beach and Proctor Silex brands; commercial products for restaurants, fast food chains, bars, and hotels under the Hamilton Beach Commercial and Proctor Silex Commercial brands; and personal care products under the Brightline brand, as well as products under the Hamilton Beach Professional in the premium market. In addition, it offers countertop appliances under the Wolf Gourmet brand; garment care products under CHI brand; farm-to-table and field-to-table food processing equipment under the Weston brand; cocktail delivery system under the Bartesian brand; and supplies private label products. The company sells its products through a network of mass merchandisers, e-commerce retailers, national department stores, variety store and drug store chains, specialty home retailers, distributors, restaurants, bars, hotels, and other retail outlets. Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia.
How the Company Makes MoneyHamilton Beach Brands generates revenue through multiple channels, primarily by selling its kitchen appliances to retailers, wholesalers, and distributors. The company's revenue model relies on direct sales to large retailers such as Walmart and Target, as well as online sales through e-commerce platforms. Key revenue streams include the sale of consumer appliances, commercial-grade equipment for restaurants and food service establishments, and licensing agreements for its brand names. Additionally, HBB benefits from strategic partnerships with major retailers, which enhance its market presence and drive sales. Seasonal promotions, product launches, and a strong focus on consumer trends contribute to its overall earnings.

Hamilton Beach Brands Holding Company Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant challenges due to tariff increases and resulting revenue decline. However, Hamilton Beach made strides in cost management, manufacturing diversification, and launched new products. While the company faces headwinds, there is optimism about future growth opportunities, especially in the premium and health segments.
Q2-2025 Updates
Positive Updates
Gross Profit Margin Expansion
Despite a challenging environment, gross profit margin increased by 160 basis points to 27.5% compared to the previous year's 25.9%, driven by a favorable customer mix including higher-margin commercial and health businesses.
Successful Diversification and Cost Management
The company accelerated its manufacturing diversification away from China, achieving $10 million in annualized cost savings and implementing foreign trade zone operations and strategic inventory prebuilds to minimize tariff exposure.
Launch of the Lotus Brand
Hamilton Beach launched the Lotus brand, which includes high-end kitchen appliances. The launch is supported by over $5 million in marketing over the next 18 months.
Growth in Health Business
The Health business saw revenues double from $0.86 million to $1.7 million year-over-year, with a significant improvement in operating losses, setting a path to profitability by year-end.
Negative Updates
Significant Revenue Decline
Total sales declined by 18.2% in Q2, driven by lower volumes in the U.S. consumer business due to tariff-related disruptions and strategic reduction in marketing initiatives.
Net Income Decrease
Net income dropped to $4.5 million ($0.33 per diluted share) from $6 million ($0.42 per diluted share) a year ago, impacted by lower sales and a one-time restructuring charge.
Increased Net Debt Position
Net debt increased to $38.7 million from $12.8 million in the prior year period, primarily due to changes in inventory and accounts payable related to tariffs and slowed sales.
Tariff Uncertainty
Higher tariffs led to temporary pauses in retailer purchase orders, creating uncertainty in the market and affecting consumer demand.
Company Guidance
During the Hamilton Beach Brands Second Quarter 2025 Earnings Conference Call, the company provided guidance amidst a challenging market environment. The company reported a total revenue of $127.8 million, down 18.2% from the previous year, primarily due to a 145% tariff increase on Chinese exports which led to reduced retailer demand. In response, Hamilton Beach Brands strategically reduced trade advertising and promotions, and accelerated manufacturing diversification away from China, achieving $10 million in annualized savings, partly through an 8% reduction in force. Gross profit margins increased by 160 basis points to 27.5%, driven by a favorable customer mix. Despite these challenges, the company remains optimistic about future growth, particularly in its premium business with the launch of the Lotus brand, supported by $5 million in marketing over the next 18 months. The commercial business is expected to grow, with Sunkist revenues projected to comprise 5% of the segment in 2025 and double by 2026. The Hamilton Beach Health segment also contributed positively, with revenue doubling to $1.7 million and a significant reduction in operating losses. The company is refraining from providing forward guidance due to ongoing trade negotiations and uncertain consumer demand.

Hamilton Beach Brands Holding Company Financial Statement Overview

Summary
Hamilton Beach Brands Holding Company exhibits a stable financial footing with strong profitability and cash generation, despite challenges in revenue fluctuations and asset financing structure.
Income Statement
75
Positive
Hamilton Beach Brands Holding Company shows strong gross profit margins and consistent net profit margins over recent periods. Revenue has fluctuated slightly, with modest growth in the TTM (Trailing-Twelve-Months) but a decline from 2024. The EBIT margin is stable, indicating operational efficiency, while EBITDA margin suggests solid earnings before non-cash expenses.
Balance Sheet
65
Positive
The company maintains a moderate debt-to-equity ratio, demonstrating a balanced approach to leveraging. The return on equity is reasonable, reflecting decent profitability relative to shareholder investments. However, the equity ratio indicates that a significant portion of assets is financed by liabilities, which could pose potential risks if industry conditions worsen.
Cash Flow
70
Positive
Operating cash flow is positive but has decreased significantly compared to previous years, indicating potential pressure on liquidity. The free cash flow growth rate has been volatile, yet the company maintains a strong free cash flow to net income ratio, highlighting efficient cash generation from operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue631.32M654.69M625.63M640.95M658.39M603.71M
Gross Profit167.56M170.21M143.68M129.11M136.50M138.65M
EBITDA37.94M38.79M39.06M41.90M36.72M39.64M
Net Income32.19M30.76M25.24M25.27M21.31M24.07M
Balance Sheet
Total Assets363.80M415.07M384.70M388.95M382.50M391.17M
Cash, Cash Equivalents and Short-Term Investments11.34M45.64M15.37M928.00K1.13M2.42M
Total Debt94.56M94.20M98.09M163.57M96.84M98.36M
Total Liabilities199.83M249.16M237.44M264.42M280.23M311.06M
Stockholders Equity163.97M165.90M147.27M124.53M102.28M80.11M
Cash Flow
Free Cash Flow2.40M62.22M85.22M-5.70M6.01M-31.25M
Operating Cash Flow4.57M65.42M88.64M-3.42M17.86M-27.93M
Investing Cash Flow-8.00M-13.88M-5.17M-2.28M-11.84M-3.81M
Financing Cash Flow-23.81M-20.95M-70.07M5.58M-7.27M34.18M

Hamilton Beach Brands Holding Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price14.25
Price Trends
50DMA
16.49
Negative
100DMA
17.06
Negative
200DMA
17.61
Negative
Market Momentum
MACD
-0.66
Negative
RSI
44.37
Neutral
STOCH
61.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBB, the sentiment is Negative. The current price of 14.25 is above the 20-day moving average (MA) of 14.15, below the 50-day MA of 16.49, and below the 200-day MA of 17.61, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 61.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HBB.

Hamilton Beach Brands Holding Company Risk Analysis

Hamilton Beach Brands Holding Company disclosed 32 risk factors in its most recent earnings report. Hamilton Beach Brands Holding Company reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Hamilton Beach Brands Holding Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$240.48M13.0212.67%1.56%6.86%88.42%
68
Neutral
$192.05M6.1620.79%3.26%-2.09%-5.04%
64
Neutral
$1.49B16.779.09%2.35%2.18%-22.35%
61
Neutral
$17.75B12.51-5.49%3.06%1.43%-14.10%
58
Neutral
$148.07M62.591.46%4.69%-7.22%
58
Neutral
$1.46B45.68-2.77%3.49%1.14%-149.26%
55
Neutral
$1.33B9.4318.68%2.03%-6.15%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HBB
Hamilton Beach Brands Holding Company
14.25
-13.79
-49.18%
BSET
Bassett Furniture
17.04
3.90
29.68%
FLXS
Flexsteel
45.58
4.85
11.91%
MLKN
MillerKnoll
21.52
-6.73
-23.82%
LZB
La-Z-Boy Incorporated
36.20
-3.04
-7.75%
LEG
Leggett & Platt
9.73
-2.71
-21.78%

Hamilton Beach Brands Holding Company Corporate Events

Executive/Board ChangesShareholder Meetings
Hamilton Beach Elects Board at Annual Meeting
Positive
May 12, 2025

On May 8, 2025, Hamilton Beach Brands Holding Company held its Annual Meeting of stockholders, where all twelve nominees were elected to the Board of Directors. Additionally, stockholders approved the executive compensation plan and ratified Ernst & Young LLP as the independent accounting firm for 2025, indicating continued shareholder support for the company’s leadership and financial oversight.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 23, 2025