Build-A-Bear Story

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BBW -- USA Stock  

USD 7.71  0.29  3.62%

Build-A-Bear Workshop is scheduled to announce its earnings today. The next earnings report is expected on the 1st of June 2021. The stock still experiences an active upward rally. Build-A-Bear Workshop Accrued Expenses Turnover is fairly stable at the moment as compared to the past year. Build-A-Bear Workshop reported Accrued Expenses Turnover of 32.39 in 2020. Operating Margin is likely to climb to 1.57 in 2021, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 21.1 M in 2021. As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to focus on Build-A-Bear Workshop as a unique choice for millenniums. Let's try to recap if Build-A-Bear Workshop shares are reasonably priced going into April.
Published over a month ago
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How much will Build A Bear Workshop owe in April?
The company has 143.14 M in debt with debt to equity (D/E) ratio of 2.52, meaning that Build-A-Bear Workshop heavily relies on borrowing funds for operations. Build-A-Bear Workshop has a current ratio of 0.97, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
Build-A-Bear Workshop financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Build-A-Bear Workshop, including all of Build-A-Bear Workshop's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Build-A-Bear Workshop assets, the company is considered highly leveraged. Understanding the composition and structure of overall Build-A-Bear Workshop debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Build-A-Bear Total Liabilities

Build-A-Bear Workshop liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Build-A-Bear Workshop has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Build-A-Bear Workshop balance sheet include debt obligations and money owed to different Build-A-Bear Workshop vendors, workers, and loan providers. Below is the chart of Build-A-Bear short long-term liabilities accounts currently reported on its balance sheet.
You can use Build-A-Bear Workshop financial leverage analysis tool to get a better grip on understanding its financial position

How important is Build-A-Bear Workshop's Liquidity

Build-A-Bear Workshop financial leverage refers to using borrowed capital as a funding source to finance Build-A-Bear Workshop ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Build-A-Bear Workshop financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Build-A-Bear Workshop's total debt and its cash.

Breaking down Build-A-Bear Workshop Further

The entity reported the last year's revenue of 266.23 M. Reported Net Loss for the year was (27.29 M) with profit before taxes, overhead, and interest of 153.62 M.

Liabilities Breakdown

79.2 M
Current Liabilities
27.3 M
Long-Term Liabilities
Total Liabilities119.84 Million
Current Liabilities79.18 Million
Long-Term Liabilities27.32 Million

Another 3 percent climb for Build-A-Bear Workshop

Total risk alpha is down to 0.11. It may cause a possible volatility fall.
As of the 10th of March, Build-A-Bear Workshop shows the Mean Deviation of 4.46, risk adjusted performance of 0.1303, and Downside Deviation of 6.07. Build-A-Bear Workshop technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have analyzed nineteen technical drivers for Build-A-Bear Workshop, which can be compared to its rivals. Please confirm Build-A-Bear Workshop information ratio, as well as the relationship between the potential upside and kurtosis to decide if Build-A-Bear Workshop is priced correctly, providing market reflects its regular price of 8.75 per share. Given that Build-A-Bear Workshop has jensen alpha of 0.8126, we suggest you to validate Build-A-Bear Workshop's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Build-A-Bear Workshop

While other entities under the specialty retail industry are still a bit expensive, Build-A-Bear Workshop may offer a potential longer-term growth to sophisticated investors. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Build-A-Bear as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Build-A-Bear Workshop.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Build-A-Bear Workshop. Please refer to our Terms of Use for any information regarding our disclosure principles.

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