Added to YB: 2022-08-30
Pitch date: 2022-08-30
BBW [bullish]
Build-A-Bear Workshop, Inc.
+96.49%
current return
Author Info
No bio for this author
Company Info
Build-A-Bear Workshop, Inc. operates as a mall-based, experiential specialty retailer for children in the United States, Canada, the United Kingdom, Ireland, North America, and Europe.
Market Cap
$359.4M
Pitch Price
$14.83
Price Target
N/A
Dividend
3.13%
EV/EBITDA
3.62
P/E
7.30
EV/Sales
0.91
Sector
Specialty Retail
Category
value
BBW: Stuffed With Unrecognized Value
BBW: Build-A-Bear’s shift beyond malls toward e-commerce, new store formats and capital-light channels is not reflected in its valuation below 2.6x forecast 2022 EV/EBITDA and 5.5x earnings. Nearly 20% Q1 domestic sales growth, decade-high operating margins, 25%+ ROIC and a debt-free balance sheet support larger buybacks; a hypothetical take-private at 6x EBITDA implies a 65% premium. Key risks are recession, licensed-IP dependence and management resistance to aggressive capital returns or a sale.
Read full article (11 min)