Hamilton Beach Brands Holding Company (HBB) AI Stock Analysis

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Hamilton Beach Brands Holding Company

(NYSE:HBB)

Rating:74Outperform

Price Target:

$20.50

▲( 15.30% Upside)

Hamilton Beach Brands Holding Company demonstrates strong financial performance with robust revenue and profit growth, and appears undervalued with a low P/E ratio. However, the stock faces bearish technical indicators and macroeconomic challenges such as increased tariffs and suspended guidance, which pose risks. These factors result in a balanced overall stock score.

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

Market Cap

$245.40M

Dividend Yield2.59%

Average Volume (3M)66.32K

Price to Earnings (P/E)7.3

Beta (1Y)0.27

Revenue Growth5.46%

EPS Growth18.70%

CountryUS

Employees679

SectorConsumer Cyclical

Sector Strength76

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)0.13

Shares Outstanding10,092,978

10 Day Avg. Volume45,953

30 Day Avg. Volume66,319

Financial Highlights & Ratios

PEG Ratio0.61

Price to Book (P/B)1.18

Price to Sales (P/S)0.00

P/FCF Ratio3.85

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

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 Holding Company generates revenue primarily through the sale of its small appliances and kitchen products. The company employs a multi-channel distribution strategy, selling its products through major retailers, e-commerce platforms, and directly to commercial customers. Key revenue streams include retail partnerships with large chains and online sales through its own and third-party websites. HBB also benefits from licensing agreements and partnerships that allow it to expand its market reach and product offerings. Additionally, the company invests in product innovation and marketing to maintain its competitive edge and drive sales growth.

Hamilton Beach Brands Holding Company Financial Statement Overview

Summary

Hamilton Beach Brands Holding Company exhibits strong financial health with robust revenue and profit growth, improved leverage, and efficient cash flow management. The company shows strong profitability with a Gross Profit Margin of 26.19% and a Net Profit Margin of 5.11% in TTM. The Revenue Growth Rate is notable at 6.76%, indicating robust growth. The balance sheet reflects a stable Equity Ratio of 39.03% and improved Debt-to-Equity Ratio of 0.28. Free Cash Flow to Net Income Ratio is positive at 1.48, reflecting solid cash flow relative to earnings. However, historical fluctuations in debt and reduced cash flow from operations indicate potential risks.

Income Statement

Very Positive

Hamilton Beach Brands Holding Company shows strong profitability with a Gross Profit Margin of 26.19% and a Net Profit Margin of 5.11% in TTM. The Revenue Growth Rate for TTM is notable at 6.76%, indicating robust growth. Additionally, EBIT and EBITDA margins are solid at 7.20% and 6.37%, respectively, showcasing operational efficiency.

Balance Sheet

Positive

The company's balance sheet reflects a stable Equity Ratio of 39.03%, suggesting a healthy capital structure. The Debt-to-Equity Ratio has improved significantly to 0.28, indicating reduced leverage. ROE stands at 20.67%, demonstrating efficient use of equity. However, fluctuations in total debt over the years highlight potential risks in financial stability.

Cash Flow

Very Positive

The cash flow statement reveals a strong Free Cash Flow Growth Rate of -19.49% from the previous year, with a robust Operating Cash Flow to Net Income Ratio of 1.55, suggesting efficient cash generation. The Free Cash Flow to Net Income Ratio is positive at 1.48, reflecting solid cash flow relative to earnings.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
659.79M	654.69M	625.63M	640.95M	658.39M	603.71M
	Gross Profit
172.78M	170.21M	143.68M	129.11M	136.50M	138.65M
	EBIT
47.56M	43.20M	35.08M	38.79M	31.54M	37.41M
	EBITDA
42.01M	38.79M	39.06M	41.90M	36.72M	39.64M
	Net Income Common Stockholders
33.73M	30.76M	25.24M	25.27M	21.31M	24.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.30M	45.64M	15.37M	928.00K	1.13M	2.42M
	Total Assets
418.02M	415.07M	384.70M	388.95M	382.50M	391.17M
	Total Debt
95.72M	94.20M	98.09M	163.57M	96.84M	98.36M
	Net Debt
47.42M	48.56M	82.72M	162.64M	95.71M	95.94M
	Total Liabilities
254.84M	249.16M	237.44M	264.42M	280.23M	311.06M
	Stockholders Equity
163.18M	165.90M	147.27M	124.53M	102.28M	80.11M
Cash Flow		Free Cash Flow
49.57M	62.22M	85.22M	-5.70M	6.01M	-31.25M
	Operating Cash Flow
52.33M	65.42M	88.64M	-3.42M	17.86M	-27.93M
	Investing Cash Flow
-7.65M	-13.88M	-5.17M	-2.28M	-11.84M	-3.81M
	Financing Cash Flow
-23.82M	-20.95M	-70.07M	5.58M	-7.27M	34.18M

Hamilton Beach Brands Holding Company Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price17.78

Price Trends

50DMA

18.15

Negative

100DMA

17.79

Positive

200DMA

21.35

Negative

Market Momentum

MACD

<0.01

Negative

RSI

52.54

Neutral

STOCH

77.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBB, the sentiment is Neutral. The current price of 17.78 is above the 20-day moving average (MA) of 17.13, below the 50-day MA of 18.15, and below the 200-day MA of 21.35, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 77.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 3 New Risks

Our intellectual property rights could be infringed and adverse events regarding licensed intellectual property could harm our business. Q4, 2024

Our ability to attract, retain and develop key talent is crucial to our results of operations and future growth. Q4, 2024

Increases in costs of products may materially reduce our profitability. Q4, 2024

Hamilton Beach Brands Holding Company Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	76 Outperform	$166.53M	12.43	9.48%	2.09%	7.24%	-9.51%
HBB	74 Outperform	$245.40M	7.32	21.86%	2.59%	5.46%	18.70%
LZB	72 Outperform	$1.74B	14.45	12.40%	1.99%	1.81%	8.09%
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%
BSET	56 Neutral	$143.53M	―	-3.83%	4.76%	-11.78%	-13.89%
MLKN	52 Neutral	$1.10B	38.36	2.28%	4.53%	-2.68%	-56.16%
LEG	50 Neutral	$1.20B	―	-50.35%	2.29%	-6.50%	-221.33%

* Consumer Cyclical Sector Average

Performance Comparison

HBB

Hamilton Beach Brands Holding Company

17.78

-0.46

-2.52%

BSET

Bassett Furniture

16.49

3.09

23.06%

FLXS

Flexsteel

30.34

-3.26

-9.70%

MLKN

MillerKnoll

16.29

-9.79

-37.54%

LZB

La-Z-Boy Incorporated

41.98

6.84

19.46%

LEG

Leggett & Platt

8.71

-1.73

-16.57%

Hamilton Beach Brands Holding Company Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: -10.20%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted several positive developments, including revenue and profit growth, successful expansion in premium and e-commerce segments, and new product launches. However, these were offset by significant challenges from increased tariffs and reduced cash flow, leading to the suspension of financial guidance.

Q1-2025 Updates

Positive Updates

Sales and Operating Profit Improvement

First quarter sales and operating profit showed solid improvement, with a $3.2 million increase in operating profit year-over-year, despite macroeconomic challenges.

Growth in Premium and Healthcare Segments

Increased penetration from higher margin businesses such as premium and healthcare contributed to a healthy gain in gross margins year-over-year.

Launch of New Premium Brand 'Lotus'

The launch of Lotus, a new premium small kitchen appliance brand, is expected to capture a share of the $4 billion total addressable premium market.

E-commerce Growth

Mid-single-digit e-commerce growth was achieved in the first quarter, now representing roughly 40% of U.S. consumer sales.

Revenue Growth

Total revenue in the first quarter was $133.4 million, a 4% increase over the previous year's first quarter.

Improved Gross Profit and Margin

Gross profit was $32.8 million, with a gross profit margin of 24.6%, an increase from 23.4% in the previous year.

Net Income and EPS Increase

Net income was $1.8 million, or $0.13 per diluted share, compared to a net loss of $1.2 million, or $0.08 per diluted share a year ago.

Negative Updates

Impact of Increased Tariffs

The U.S. imposed 20% tariffs on all Chinese imports, with reciprocal tariffs levied in April, increasing to 145%, posing significant challenges.

Reduced Cash Flow from Operations

Net cash provided by operating activities was $6.6 million, a decrease from $19.7 million in the previous year, due to improvements in trade receivable collections and increased inventory.

Suspension of Financial Guidance

Due to unpredictable trade negotiations and tariff impacts, the company suspended its practice of providing financial guidance until conditions stabilize.

International Revenue Decline

Despite growth in North America, international revenues experienced slight declines.

Company Guidance

During Hamilton Beach Brand's first quarter 2025 earnings call, the company highlighted several key metrics and strategic initiatives. The company reported a 4% increase in total revenue, reaching $133.4 million, driven by favorable product mix and higher volume. Gross profit rose to $32.8 million with a margin of 24.6%, up from 23.4% in the previous year. Operating profit improved by $3.2 million, while net income was $1.8 million, or $0.13 per diluted share, compared to a net loss in the prior year. Despite challenges from new tariffs, the company is optimistic about its strategic initiatives, which include diversifying its supply chain and expanding its digital presence. They expect these actions to positively impact their margin profile by 2026. Additionally, the HealthBeacon segment generated $1.5 million in revenue, marking its third consecutive quarter of growth. However, due to the unpredictability of trade negotiations, the company has temporarily suspended providing forward guidance.

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.

Executive/Board ChangesShareholder Meetings

Hamilton Beach Announces Director John Jumper’s Departure

Neutral

Mar 19, 2025

On March 18, 2025, John P. Jumper informed the Board of Directors of Hamilton Beach Brands Holding Company that he will not stand for re-election as a director at the upcoming Annual Meeting of Stockholders expected around May 8, 2025. There were no disagreements between Mr. Jumper and the company leading to his decision, indicating a smooth transition without internal conflicts.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.