NEW YORK (

TheStreet

)

-- Build-A-Bear Workshop

(NYSE:

BBW

) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, compelling growth in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • Compared to where it was trading one year ago, BBW is up 21.47% to its most recent closing price of 7.92. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.
  • BUILD-A-BEAR WORKSHOP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, BUILD-A-BEAR WORKSHOP INC turned its bottom line around by earning $0.01 versus -$0.66 in the prior year. This year, the market expects an improvement in earnings ($0.05 versus $0.01).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 162.0% when compared to the same quarter one year prior, rising from -$1.38 million to $0.85 million.
  • 46.90% is the gross profit margin for BUILD-A-BEAR WORKSHOP INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.90% trails the industry average.
  • Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.41 is very low and demonstrates very weak liquidity.

Build-A-Bear Workshop, Inc. operates as a specialty retailer of plush animals and related products. The company's merchandise comprises of various styles of animals to be stuffed; clothing, shoes, and accessories for the stuffed animals; and other brand appropriate toy and accessory items. Build-A-Bear Workshop has a market cap of $140 million and is part of the

services

sector and

specialty retail

industry. Shares are up 3.9% year to date as of the close of trading on Tuesday.

You can view the full

Build-A-Bear Workshop Ratings Report

or get investment ideas from our

investment research center

.

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