Last Updated: 16 Sep 2024
Executive Summary
Build-A-Bear Workshop Inc. (BBW) is a leading multi-channel retailer of stuffed animals and related products. The company's strong brand recognition, innovative products, and loyal customer base have contributed to its consistent financial performance. BBW is currently trading at $30.92, below its 52-week high of $34.80. Analysts have a positive outlook on the company, with a median target price of $39.67.
Company Overview
Build-A-Bear Workshop was founded in 1997 and is headquartered in St. Louis, Missouri. The company operates over 400 stores in the United States, Canada, Europe, and Asia. BBW's products include a wide range of stuffed animals, clothing, accessories, and interactive experiences. The company also offers online sales and personalized products.
Fundamental Analysis
BBW's financial performance has been strong in recent years. The company reported revenue of $483.4 million in the latest quarter, a 2.4% increase year-over-year. Diluted EPS was $3.54, a 12.3% increase year-over-year. BBW has a strong balance sheet with $106.2 million in cash and equivalents and no long-term debt.
The company's key financial ratios are as follows:
P/E Ratio: 8.73
PEG Ratio: 0.55
Price-to-Sales Ratio: 0.865
Price-to-Book Ratio: 3.323
Return on Assets: 14.5%
Return on Equity: 42.9%
Technical Analysis
BBW's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is at 60, indicating that the stock is overbought. However, the moving average convergence divergence (MACD) indicator is bullish, suggesting that the stock has further upside potential.
Short Term Outlook
In the short term, BBW's stock price is likely to continue to trend higher. The company's strong financial performance and positive analyst sentiment are likely to support the stock price. However, the stock is overbought, and a pullback could occur in the near term.
Long Term Outlook
In the long term, BBW has a number of growth opportunities. The company is expanding its international presence and developing new products and experiences. BBW is also well-positioned to benefit from the growing trend of personalized products.
Analyst Recommendations
Analysts have a positive outlook on BBW. The median target price is $39.67, which implies a potential upside of 28.5% from the current price. Three analysts have a Buy rating on the stock, while none have a Sell rating.
