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BBW

BEARISH
$40.91 Live
Build-A-Bear Workshop, Inc. · NYSE
Target $62.0 (+51.6%)
$32.55 52W Range $75.85

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
BBW's deterministic health scores signal significant concern: the Piotroski F-Score of 2/9 indicates weak financial health, with minimal positive signals across operational efficiency and profitability sustainability. While the Graham Number ($34.11) and intrinsic value ($30.31) suggest undervaluation, the current price of $40.91 trades at a premium, especially given deteriorating earnings growth (YoY -22.1%) and a recent 6-month price decline of 44.3%. Insider selling totaling $4.69M over six months, including a large sale by the CEO, reinforces bearish sentiment. Despite strong historical earnings surprises and high ROE, the company's growth stagnation and declining profitability undermine long-term confidence.

Key Strengths

High ROE of 35.50% indicates efficient use of equity capital
Strong gross margin of 55.80% reflects pricing power and cost control
Consistent history of beating earnings estimates (3/4 in last 4 quarters)
Positive recent earnings surprise of +3.3% in Q1 2026
Dividend payout ratio of 19.86% is sustainable and conservative

Key Risks

Piotroski F-Score of 2/9 signals severe financial distress risk and weak operational health
Earnings declined sharply by 22.1% YoY despite stable revenue growth of 2.7%
Insider selling activity (8 transactions, $4.69M) suggests lack of confidence from leadership
Technical trend is 0/100 (bearish), with 6-month price drop of 44.3%
No Altman Z-Score available, but debt/equity of 0.82 and low quick ratio (0.53) raise liquidity concerns
AI Fair Value Estimate
Based on comprehensive analysis
$34.11
-16.6% below current price

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