BuildABear Workshop, Inc.
Find Ratings ReportsBUILD-A-BEAR WORKSHOP INC's gross profit margin for the third quarter of its fiscal year 2020 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. BUILD-A-BEAR WORKSHOP INC has very weak liquidity. Currently, the Quick Ratio is 0.37 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 30.80% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q3 FY20 | Q3 FY19 |
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Net Sales ($mil) | 74.67 | 70.38 |
EBITDA ($mil) | 5.03 | -4.13 |
EBIT ($mil) | 1.83 | -7.69 |
Net Income ($mil) | 1.66 | -5.87 |
Balance Sheet | Q3 FY20 | Q3 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 25.81 | 6.17 |
Total Assets ($mil) | 259.44 | 296.68 |
Total Debt ($mil) | 143.14 | 161.93 |
Equity ($mil) | 56.7 | 81.94 |
Profitability | Q3 FY20 | Q3 FY19 |
---|---|---|
Gross Profit Margin | 51.05 | 44.45 |
EBITDA Margin | 6.73 | -5.86 |
Operating Margin | 2.46 | -10.92 |
Sales Turnover | 1.03 | 1.13 |
Return on Assets | -10.51 | -5.5 |
Return on Equity | -48.13 | -19.92 |
Debt | Q3 FY20 | Q3 FY19 |
---|---|---|
Current Ratio | 0.99 | 1.09 |
Debt/Capital | 0.72 | 0.66 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q3 FY20 | Q3 FY19 |
---|---|---|
Shares outstanding (mil) | 15.96 | 15.22 |
Div / share | 0.0 | 0.0 |
EPS | 0.11 | -0.4 |
Book value / share | 3.55 | 5.38 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 147179.0 | 141037.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.19 indicates a significant discount versus the S&P 500 average of 4.11 and a significant discount versus the subsector average of 76.93. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, BUILD-A-BEAR WORKSHOP INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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BBW NM | Peers 50.87 | BBW 2.47 | Peers 16.67 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. BBW's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. BBW is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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BBW 14.13 | Peers 43.00 | BBW NA | Peers 2.05 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. BBW's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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BBW 1.19 | Peers 76.93 | BBW -62.50 | Peers -6.17 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. BBW is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, BBW is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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BBW 0.25 | Peers 2.76 | BBW -20.65 | Peers 6.27 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. BBW is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. BBW significantly trails its peers on the basis of sales growth. |
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