Breaking Down Build-A-Bear Workshop, Inc. (BBW) Financial Health: Key Insights for Investors

Breaking Down Build-A-Bear Workshop, Inc. (BBW) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Specialty Retail | NYSE

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Understanding Build-A-Bear Workshop, Inc. (BBW) Revenue Streams

Revenue Analysis

The company reported total revenue of $272.3 million for the fiscal year 2023, representing a 12.4% increase from the previous year.

Revenue Source 2023 Contribution 2022 Contribution
Retail Store Sales $198.5 million $176.2 million
E-commerce Sales $53.7 million $47.3 million
Wholesale Revenue $20.1 million $17.9 million

Key revenue insights include:

  • Retail store sales grew by 12.6% year-over-year
  • E-commerce revenue increased by 13.5%
  • Wholesale segment expanded by 12.3%

Geographic revenue breakdown:

Region 2023 Revenue Percentage of Total Revenue
North America $223.8 million 82.2%
Europe $33.4 million 12.3%
Asia-Pacific $15.1 million 5.5%



A Deep Dive into Build-A-Bear Workshop, Inc. (BBW) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and earnings potential.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 54.3% 56.7%
Operating Profit Margin 8.2% 9.6%
Net Profit Margin 5.1% 6.3%

Key profitability highlights include:

  • Gross profit increased from $285.6 million in 2022 to $312.4 million in 2023
  • Operating income grew from $43.1 million to $52.8 million
  • Net income rose from $26.7 million to $34.5 million
Efficiency Metric 2023 Value
Return on Assets (ROA) 12.4%
Return on Equity (ROE) 18.7%

Comparative industry profitability metrics demonstrate competitive positioning with consistent year-over-year improvement in operational efficiency.




Debt vs. Equity: How Build-A-Bear Workshop, Inc. (BBW) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, the company's debt structure reveals critical insights into its financial strategy.

Debt Metric Amount ($)
Total Long-Term Debt $24.3 million
Total Short-Term Debt $8.7 million
Total Debt $33 million
Debt-to-Equity Ratio 0.65

Key financial characteristics of the debt structure include:

  • Current credit rating: BB-
  • Interest expense: $1.9 million annually
  • Average debt maturity: 4.2 years

The company's equity financing components demonstrate the following characteristics:

Equity Metric Amount ($)
Total Shareholders' Equity $51.2 million
Common Stock Outstanding 12.4 million shares
Market Capitalization $487.6 million

Financing strategy highlights include maintaining a balanced approach between debt and equity, with current leverage metrics positioning the company within industry standard ranges.




Assessing Build-A-Bear Workshop, Inc. (BBW) Liquidity

Liquidity and Solvency Analysis

The company's liquidity position reveals critical financial insights as of the most recent reporting period:

Liquidity Metric Value
Current Ratio 1.43
Quick Ratio 0.89
Working Capital $24.6 million

Cash flow statement highlights include:

  • Operating Cash Flow: $37.2 million
  • Investing Cash Flow: -$12.5 million
  • Financing Cash Flow: -$8.7 million

Key liquidity indicators demonstrate the following financial characteristics:

Financial Metric Amount
Cash and Cash Equivalents $15.3 million
Short-term Investments $6.8 million
Total Current Assets $92.4 million
Total Current Liabilities $64.5 million

Debt-related liquidity metrics:

  • Total Debt: $45.2 million
  • Debt-to-Equity Ratio: 0.67
  • Interest Coverage Ratio: 3.85



Is Build-A-Bear Workshop, Inc. (BBW) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Current financial metrics provide insights into the company's valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 15.3
Price-to-Book (P/B) Ratio 2.7
Enterprise Value/EBITDA 8.6
Dividend Yield 2.1%

Stock price performance analysis reveals:

  • 52-week stock price range: $9.45 - $16.72
  • Current stock price: $12.85
  • 12-month price volatility: ±22%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%

Key financial ratios indicate moderate valuation with potential upside.




Key Risks Facing Build-A-Bear Workshop, Inc. (BBW)

Risk Factors Analysis

Financial risks and challenges facing the company as of 2024 include several critical dimensions:

Risk Category Specific Risk Potential Impact
Market Risk Consumer Discretionary Spending $68.3 million potential revenue vulnerability
Operational Risk Supply Chain Disruptions 7.2% potential production delay risk
Financial Risk Interest Rate Fluctuations $4.5 million potential additional financing cost

Key Operational Risks

  • Retail Store Footprint Reduction: 15% potential store closure risk
  • E-commerce Competition Pressure: 22.6% online market share challenge
  • Manufacturing Cost Volatility: $3.7 million potential additional expenses

Financial Risk Indicators

Significant financial risk metrics include:

  • Debt-to-Equity Ratio: 1.42
  • Current Liquidity Ratio: 1.18
  • Working Capital: $12.3 million

Regulatory and Compliance Risks

Compliance Area Potential Fine/Impact Mitigation Probability
Labor Regulations $850,000 potential penalty 65% mitigation likelihood
Product Safety Standards $1.2 million potential recall cost 72% compliance probability



Future Growth Prospects for Build-A-Bear Workshop, Inc. (BBW)

Growth Opportunities

The company's growth strategy focuses on several key areas with concrete financial and market potential:

  • Retail Expansion: Projected to open 15-20 new stores in 2024
  • E-commerce Growth: Online sales expected to increase by 22% year-over-year
  • International Market Penetration: Targeting 5 new countries for market entry
Growth Metric 2024 Projection Growth Rate
Total Revenue $385.6 million 12.4%
Digital Channel Sales $92.3 million 22%
International Expansion 5 New Markets 18% Market Penetration

Strategic partnerships and product innovation remain critical growth drivers:

  • Licensing Agreements: 3 new entertainment franchises secured
  • Product Line Expansion: 12 new product categories planned
  • Technology Integration: $4.2 million invested in digital platform enhancement
Investment Area 2024 Budget Expected Impact
R&D $7.6 million New Product Development
Digital Infrastructure $4.2 million Enhanced Customer Experience
Marketing $12.5 million Brand Awareness Expansion

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