📊 BBW Key Takeaways
Is Build-A-Bear Workshop Inc. (BBW) a Good Investment?
Build-A-Bear demonstrates strong profitability fundamentals with 63.8% gross margins and 14.6% net margins, coupled with a debt-free balance sheet. However, net income growth of only 0.8% YoY despite 6.7% revenue growth signals operational headwinds and margin compression, indicating a mature business facing cost pressures without commensurate pricing power.
Build-A-Bear Workshop shows strong core fundamentals, with high gross margins, double-digit operating margins, solid returns on equity and assets, and consistent free cash flow generation. Growth is modest rather than rapid, but the combination of profitability, a debt-free balance sheet, and stable earnings quality supports a favorable fundamental view.
Build-A-Bear Workshop Inc. Key Strengths (BBW)
- Excellent profitability margins (gross 63.8%, operating 19.1%, net 14.6%) indicating strong unit economics
- Debt-free capital structure (D/E 0.00x) providing financial flexibility and resilience
- Consistent positive free cash flow generation ($14.4M FCF, 11.5% FCF margin) supporting sustainability
- High profitability, including 56.0% gross margin, 12.2% operating margin, and 9.5% net margin
- Strong financial health with 0.00x debt-to-equity, positive cash balance, and a 1.65x current ratio
- Healthy cash generation, with $40.26M operating cash flow and $27.39M free cash flow
BBW Stock Risks: Build-A-Bear Workshop Inc. Investment Risks
- Deteriorating growth quality: revenue growing 6.7% while net income grows only 0.8%, suggesting margin compression
- Quick ratio of 0.72x indicates potential working capital constraints; retail inventory-heavy model vulnerable to demand shocks
- Exposure to cyclical consumer spending and secular retail headwinds in toy/game retail sector with e-commerce competition
- Revenue growth is modest at 2.1% YoY, which may limit operating leverage upside
- Net income was essentially flat YoY, suggesting margin expansion may be harder going forward
- Quick ratio of 0.66x indicates reliance on inventory conversion and working capital management
Key Metrics to Watch
- Operating margin trend—critical to monitor for continued cost inflation relative to revenue growth
- Free cash flow sustainability and conversion to net income—identifies margin recovery or deterioration
- Inventory-to-revenue ratio—gauges operational efficiency and working capital management in retail model
- Comparable revenue growth and operating margin trends
- Free cash flow conversion and liquidity, especially quick ratio/cash levels
Build-A-Bear Workshop Inc. (BBW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Build-A-Bear Workshop Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BBW Profit Margin, ROE & Profitability Analysis
BBW vs Consumer Sector: How Build-A-Bear Workshop Inc. Compares
How Build-A-Bear Workshop Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Build-A-Bear Workshop Inc. Stock Overvalued? BBW Valuation Analysis 2026
Based on fundamental analysis, Build-A-Bear Workshop Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Build-A-Bear Workshop Inc. Balance Sheet: BBW Debt, Cash & Liquidity
BBW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Build-A-Bear Workshop Inc.'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.65 reflects profitable operations.
BBW Revenue Growth, EPS Growth & YoY Performance
BBW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $125.3M | $15.3M | $1.17 |
| Q3 2025 | $119.4M | $8.1M | $0.62 |
| Q2 2025 | $111.8M | $8.8M | $0.64 |
| Q1 2025 | $114.7M | $11.5M | $0.82 |
| Q3 2024 | $107.6M | $7.6M | $0.53 |
| Q2 2024 | $109.2M | $8.3M | $0.57 |
| Q1 2024 | $114.7M | $11.5M | $0.82 |
| Q3 2023 | $104.5M | $7.5M | $0.51 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Build-A-Bear Workshop Inc. Dividends, Buybacks & Capital Allocation
BBW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Build-A-Bear Workshop Inc. (CIK: 0001113809)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BBW
What is the AI rating for BBW?
Build-A-Bear Workshop Inc. (BBW) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BBW's key strengths?
Claude: Excellent profitability margins (gross 63.8%, operating 19.1%, net 14.6%) indicating strong unit economics. Debt-free capital structure (D/E 0.00x) providing financial flexibility and resilience. ChatGPT: High profitability, including 56.0% gross margin, 12.2% operating margin, and 9.5% net margin. Strong financial health with 0.00x debt-to-equity, positive cash balance, and a 1.65x current ratio.
What are the risks of investing in BBW?
Claude: Deteriorating growth quality: revenue growing 6.7% while net income grows only 0.8%, suggesting margin compression. Quick ratio of 0.72x indicates potential working capital constraints; retail inventory-heavy model vulnerable to demand shocks. ChatGPT: Revenue growth is modest at 2.1% YoY, which may limit operating leverage upside. Net income was essentially flat YoY, suggesting margin expansion may be harder going forward.
What is BBW's revenue and growth?
Build-A-Bear Workshop Inc. reported revenue of $125.3M.
Does BBW pay dividends?
Build-A-Bear Workshop Inc. pays dividends, with $2.9M distributed to shareholders in the trailing twelve months.
Where can I find BBW SEC filings?
Official SEC filings for Build-A-Bear Workshop Inc. (CIK: 0001113809) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BBW's EPS?
Build-A-Bear Workshop Inc. has a diluted EPS of $1.45.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BBW's fundamental grade?
Based on our AI fundamental analysis in June 2026, Build-A-Bear Workshop Inc. has a A grade with 73% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BBW stock overvalued or undervalued?
Valuation metrics for BBW: ROE of 11.5% (sector avg: 18%), net margin of 14.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is BBW's AI grade for 2026?
Our dual AI analysis gives Build-A-Bear Workshop Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BBW's free cash flow?
Build-A-Bear Workshop Inc.'s operating cash flow is $21.2M, with capital expenditures of $6.9M. FCF margin is 11.5%.
How does BBW compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 14.6% (avg: 8%), ROE 11.5% (avg: 18%), current ratio 1.53 (avg: 1.5).