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BABB Stock Analysis - BAB, INC. AI Rating

BABB OTC Retail-Eating Places DE CIK: 0001123596
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2025-11-30
AI Rating
HOLD
45% Confidence

📊 BABB Key Takeaways

Revenue: $3.4M
Net Margin: 16.3%
Free Cash Flow: $411.1K
Current Ratio: 4.26x
Debt/Equity: 0.04x
EPS: $0.06
AI Rating: HOLD with 45% confidence

Investment Thesis

BAB demonstrates solid profitability metrics with a 16.3% net margin and strong interest coverage of 545.5x, supported by robust liquidity (4.26x current ratio) and minimal debt. However, revenue decline of 3.0% YoY and minimal insider activity raise concerns about growth trajectory and management conviction, warranting caution despite healthy operational fundamentals.

BABB Strengths

  • + Excellent liquidity position with 4.26x current ratio and $2.2M cash against $1.3M total liabilities
  • + Strong profitability margins with 21.0% operating margin and 16.3% net margin generating $559K net income
  • + Conservative capital structure with 0.04x debt-to-equity ratio and minimal long-term debt of $142.6K

BABB Risks

  • ! Declining revenue trend (-3.0% YoY) suggests business contraction in competitive retail food service sector
  • ! Zero insider Form 4 filings in last 90 days indicates low management confidence or minimal equity incentives
  • ! Small absolute revenue base of $3.4M creates vulnerability to market disruptions and limits scale advantages

Key Metrics to Watch

BABB Financial Metrics

Revenue
$3.4M
Net Income
$559.0K
EPS (Diluted)
$0.06
Free Cash Flow
$411.1K
Total Assets
$4.8M
Cash Position
$2.2M

💡 AI Analyst Insight

Strong liquidity with a 4.26x current ratio provides a solid financial cushion.

BABB Profitability Ratios

Gross Margin N/A
Operating Margin 21.0%
Net Margin 16.3%
ROE 16.1%
ROA 11.7%
FCF Margin 12.0%

BABB vs Consumer Sector

How BAB, INC. compares to Consumer sector averages

Net Margin
BABB 16.3%
vs
Sector Avg 8.0%
BABB Sector
ROE
BABB 16.1%
vs
Sector Avg 18.0%
BABB Sector
Current Ratio
BABB 4.3x
vs
Sector Avg 1.5x
BABB Sector
Debt/Equity
BABB 0.0x
vs
Sector Avg 0.8x
BABB Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BABB Balance Sheet & Liquidity

Current Ratio
4.26x
Quick Ratio
4.26x
Debt/Equity
0.04x
Debt/Assets
27.5%
Interest Coverage
545.45x
Long-term Debt
$142.6K

BABB 5-Year Financial Trend

BABB 5-year financial data: Year 2021: Revenue $3.1M, Net Income -$66.2K, EPS N/A. Year 2022: Revenue $3.3M, Net Income $651.1K, EPS $0.09. Year 2023: Revenue $3.5M, Net Income $432.0K, EPS $0.06. Year 2024: Revenue $3.5M, Net Income $467.3K, EPS $0.06. Year 2025: Revenue $3.5M, Net Income $525.2K, EPS $0.07.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: BAB, INC.'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.07 reflects profitable operations.

BABB Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
12.0%
Free cash flow / Revenue

BABB Quarterly Performance

Quarterly financial performance data for BAB, INC. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $768.5K $160.3K $0.02
Q2 2025 $808.5K $145.7K $0.02
Q1 2025 $757.2K $98.5K $0.01
Q3 2024 $871.9K $160.3K $0.02
Q2 2024 $864.4K $126.5K $0.02
Q1 2024 $745.6K $35.3K $0.00
Q3 2023 $882.3K $164.4K $0.02
Q2 2023 $824.4K $93.9K $0.01

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BABB Capital Allocation

Operating Cash Flow
$414.4K
Cash generated from operations
Capital Expenditures
$3.2K
Investment in assets
Dividends Paid
$435.8K
Returned to shareholders

BABB SEC Filings

Access official SEC EDGAR filings for BAB, INC. (CIK: 0001123596)

📋 Recent SEC Filings

Date Form Document Action
Feb 25, 2026 8-K babs20260225_8k.htm View →
Feb 24, 2026 10-K babs20251130_10k.htm View →
Nov 20, 2025 8-K babs20251118_8k.htm View →
Nov 19, 2025 8-K babs20251119_8k.htm View →
Oct 10, 2025 10-Q babs20250831_10q.htm View →

Frequently Asked Questions about BABB

What is the AI rating for BABB?

BAB, INC. (BABB) has an AI rating of HOLD with 45% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BABB's key strengths?

Excellent liquidity position with 4.26x current ratio and $2.2M cash against $1.3M total liabilities. Strong profitability margins with 21.0% operating margin and 16.3% net margin generating $559K net income.

What are the risks of investing in BABB?

Declining revenue trend (-3.0% YoY) suggests business contraction in competitive retail food service sector. Zero insider Form 4 filings in last 90 days indicates low management confidence or minimal equity incentives.

What is BABB's revenue and growth?

BAB, INC. reported revenue of $3.4M.

Does BABB pay dividends?

BAB, INC. pays dividends, with $0.4M distributed to shareholders in the trailing twelve months.

Where can I find BABB SEC filings?

Official SEC filings for BAB, INC. (CIK: 0001123596) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BABB's EPS?

BAB, INC. has a diluted EPS of $0.06.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-11-30 | Powered by Claude AI