Build-A-Bear Workshop Inc (NYSE: BBW)

Sector: Consumer Cyclical Industry: Specialty Retail CIK: 0001113809
Market Cap 791.46 Mn
P/B 8.45
P/E 16.75
P/S 1.92
ROIC (Qtr) 20.62
Div Yield % 2.87
Rev 1y % (Qtr) 2.72
Total Debt (Qtr) 118.21 Mn
Debt/Equity (Qtr) 0.78
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About

Investment thesis

Bull case

  • Strong operating cash flow of 59.77M provides robust 0.51x coverage of total debt 118.21M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 326.50M provides 2.76x coverage of total debt 118.21M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 59.77M provides strong 22.28x coverage of stock compensation 2.68M, indicating sustainable incentive practices.
  • Robust free cash flow of 37.15M exceeds capital expenditure of 22.62M by 1.64x, indicating strong organic growth funding capability.
  • Tangible assets of 326.50M provide exceptional 68.13x coverage of deferred revenue 4.79M, showing strong service capability backing.

Bear case

  • Operating cash flow of 59.77M barely covers its investment activities of (22.62M), with a coverage ratio of -2.64, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 59.77M provides thin coverage of dividend payments of (11.39M) with a -5.25 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of 100.70M provide limited buffer against comprehensive income items of (11.55M), which is -8.72x, indicating elevated exposure to market risks.
  • Operating cash flow of 59.77M is outpaced by equity issuance of (26.87M) (-2.22 ratio), indicating concerning reliance on equity markets for funding operations.
  • Cash position of 27.74M provides only -32.21x coverage of interest expenses of (861000), indicating potential refinancing risks in a rising rate environment.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ULTA Ulta Beauty, Inc. 32.20 Bn 27.06 2.69 2.57 Bn
2 WSM Williams Sonoma Inc 29.62 Bn 25.19 3.40 1.47 Bn
3 TSCO Tractor Supply Co /De/ 28.42 Bn 25.23 1.93 5.72 Bn
4 DKS Dick'S Sporting Goods, Inc. 24.98 Bn 88.10 4.64 7.70 Bn
5 CASY Caseys General Stores Inc 24.65 Bn 59.49 1.65 2.92 Bn
6 BBY Best Buy Co Inc 17.85 Bn 11.66 0.41 4.09 Bn
7 MUSA Murphy USA Inc. 15.91 Bn 61.33 1.35 2.75 Bn
8 FIVE Five Below, Inc 11.68 Bn 37.94 2.64 2.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.61 2.23
EV to Cash from Ops. EV/CFO 30.36 14.70
EV to Debt EV to Debt 7.21 79.39
EV to EBIT EV/EBIT 16.81 -40.16
EV to EBITDA EV/EBITDA 13.54 11.51
EV to Free Cash Flow [EV/FCF] EV/FCF 42.74 -286.14
EV to Market Cap EV to Market Cap 1.08 6.33
EV to Revenue EV/Rev 2.07 2.39
Price to Book Value [P/B] P/B 8.45 32.78
Price to Earnings [P/E] P/E 16.75 -36.32
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 5.05 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 19.80 14.19
Dividend per Basic Share Div per Share (Qtr) 0.66 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 23.11 18.58
Interest Coverage Int. cover (Qtr) -83.98 4.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -35.09 13.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.21 33.75
Dividend Growth (1y) % Div 1y % (Qtr) -17.50 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 10.01 -272.99
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 9.38 588.45
EBIT Growth (1y) % EBIT 1y % (Qtr) 11.45 29.27
EBT Growth (1y) % EBT 1y % (Qtr) 11.18 -92.23
EPS Growth (1y) % EPS 1y % (Qtr) 15.43 -121.86
FCF Growth (1y) % FCF 1y % (Qtr) -12.38 71.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.79 2.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.61 1.24
Cash Payout Ratio Cash Payout (Qtr) 0.14 0.04
Cash Ratio Cash Ratio (Qtr) 0.33 0.74
Current Ratio Curr Ratio (Qtr) 1.65 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.78 25.92
Interest Cover Ratio Int Coverage (Qtr) -83.98 4.43
Times Interest Earned Times Interest Earned (Qtr) -83.98 4.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 16.60 -42.64
EBIT Margin % EBIT Margin % (Qtr) 13.75 -131.12
EBT Margin % EBT Margin % (Qtr) 13.92 -64.70
Gross Margin % Gross Margin % (Qtr) 56.20 30.93
Net Profit Margin % Net Margin % (Qtr) 10.90 -65.71