BuildABear Workshop (BBW) AI Stock Analysis

• Market Cap: $455.97M
• Dividend Yield: 2.36%
• Average Volume (3M): 330.09K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.45
• Revenue Growth: 2.12%
• EPS Growth: 3.78%
• Country: US
• Employees: 1,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Specialty Retail
• EPS (TTM): 3.81
• Shares Outstanding: 13,144,130
• 10 Day Avg. Volume: 333,438
• 30 Day Avg. Volume: 330,088
• PEG Ratio: 2.42
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.92
• Price to Cash Flow (P/CF): 8.30
• P/FCF Ratio: 16.42
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $52.50
• Price Target Upside: 51.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

BuildABear Workshop's strong financial performance and positive earnings call sentiment are key strengths, highlighting robust revenue growth and strategic expansion efforts. However, bearish technical indicators suggest potential near-term stock price weakness. The company's attractive valuation adds to its appeal, despite some challenges such as tariff concerns and e-commerce performance.

BuildABear Workshop Business Overview & Revenue Model

Company Description

Build-A-Bear Workshop (BBW) is a retail company specializing in customized stuffed animals and related products. Founded in 1997, the company operates through its stores in shopping centers, tourist locations, and its online platform. Core products include a variety of plush animals, clothing, and accessories that customers can personalize through a unique, interactive experience. The company also offers licensed products from popular franchises, enhancing its appeal to a broad audience.

How the Company Makes Money

Build-A-Bear Workshop generates revenue primarily through the sale of its customizable plush animals and related accessories, both in-store and online. Key revenue streams include direct sales from its retail locations, e-commerce sales, and licensing agreements with popular brands and franchises which allow the company to offer exclusive, themed products. The experiential aspect of the in-store process, where customers participate in creating their personalized stuffed animals, contributes significantly to its unique market position and customer loyalty. The company also benefits from partnerships with entertainment and media companies, leveraging popular characters to drive sales and attract diverse customer demographics.

BuildABear Workshop Financial Statement Overview

Summary

Build-A-Bear Workshop exhibits strong financial performance with a notable increase in revenue and profitability. The income statement shows a robust gross profit margin of 54.84% and a net profit margin of 10.57%. The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.77, while the cash flow demonstrates effective cash generation.

Income Statement

Build-A-Bear Workshop shows strong financial performance with a consistent increase in revenue and profitability. The TTM gross profit margin stands at 54.84%, and the net profit margin is 10.57%, indicating efficient cost management. The company has demonstrated robust revenue growth, with a notable increase of 20.70% from 2022 to 2023. EBIT and EBITDA margins of 13.06% and 16.11% respectively reflect solid operational efficiency.

Balance Sheet

The balance sheet of Build-A-Bear Workshop displays a healthy financial position with a debt-to-equity ratio of 0.77, indicating a balanced capital structure. The return on equity (ROE) is strong at 40.74%, showcasing effective utilization of shareholders' equity. The equity ratio of 44.96% reflects a stable financial foundation, although the total debt level warrants monitoring.

Cash Flow

The company's cash flow is robust, with a strong operating cash flow to net income ratio of 1.13, indicating effective cash generation from operations. Free cash flow has shown significant growth, rising by 25.99% from 2022 to 2023, underpinning the company's ability to fund operations and investments. The free cash flow to net income ratio of 0.81 suggests efficient cash flow management.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
486.11M	467.94M	411.52M	255.31M	338.54M
	Gross Profit
264.39M	245.87M	217.96M	97.29M	153.62M
	EBIT
65.40M	49.46M	38.43M	-35.09M	-12.13M
	EBITDA
79.06M	61.94M	50.70M	-6.88M	1.58M
	Net Income Common Stockholders
52.80M	47.98M	47.27M	-24.61M	261.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.33M	42.20M	32.84M	34.84M	26.73M
	Total Assets
272.32M	280.79M	268.95M	261.37M	297.36M
	Total Debt
83.57M	86.52M	97.76M	133.86M	150.54M
	Net Debt
39.24M	44.32M	64.92M	99.02M	123.81M
	Total Liabilities
142.66M	161.68M	175.27M	195.69M	208.63M
	Stockholders Equity
129.66M	119.12M	93.68M	65.68M	88.73M
Cash Flow		Free Cash Flow
46.02M	33.64M	19.95M	8.34M	9.22M
	Operating Cash Flow
64.31M	47.28M	28.08M	13.39M	21.61M
	Investing Cash Flow
-18.30M	-13.63M	-8.13M	-5.05M	-12.38M
	Financing Cash Flow
-43.90M	-25.06M	-22.46M	-114.00K	-245.00K

BuildABear Workshop Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 34.69 is below the 20-day moving average (MA) of 36.38, below the 50-day MA of 37.55, and below the 200-day MA of 35.59, indicating a bearish trend. The MACD of -0.87 indicates Positive momentum. The RSI at 45.14 is Neutral, neither overbought nor oversold. The STOCH value of 35.75 is Neutral, 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	73 Outperform	$455.97M	9.12	38.54%	2.36%	2.12%	3.78%
SCVL	68 Neutral	$488.87M	6.71	11.97%	3.00%	2.30%	0.88%
JAKK	63 Neutral	$222.48M	6.36	15.57%	1.25%	-2.88%	-14.25%
RCKY	61 Neutral	$102.24M	9.00	5.00%	4.53%	-1.75%	8.28%
VIRC	60 Neutral	$163.38M	7.59	21.60%	1.01%	-1.07%	-1.09%
Sector *	60 Neutral	$6.85B	11.71	3.16%	4.15%	2.39%	-21.87%
FNKO	46 Neutral	$234.50M	―	-6.33%	―	-4.22%	90.89%

BuildABear Workshop Corporate Events

Build-A-Bear Workshop Highlights Financial Performance

Build-A-Bear Workshop, Inc. has prepared an investor presentation highlighting its financial performance using non-GAAP measures to provide a clearer picture of its operations. This presentation is intended for current and prospective investors and aims to facilitate a better understanding of the company’s financial results over different periods.

BuildABear Workshop Increases Quarterly Dividend by 10%

On March 11, 2025, Robert L. Dixon, Jr. announced his retirement from the Build-A-Bear Workshop Board of Directors, effective at the end of his term. On March 12, 2025, the company declared a 10% increase in its quarterly cash dividend to $0.22 per share, payable on April 10, 2025, reflecting its strong financial performance and commitment to returning value to shareholders.

Build-A-Bear Workshop Appoints Richard Johnson to Board

On March 5, 2025, Build-A-Bear Workshop appointed Richard A. Johnson, former CEO of Foot Locker, to its Board of Directors as an independent member. Johnson’s extensive retail experience is expected to contribute to the company’s strategic initiatives and shareholder value. He will serve on the Audit and Nominating and Corporate Governance Committees, receiving compensation consistent with other non-employee directors.