Hamilton Beach Brands Holding Company Fundamental Analysis (NYSE: HBB)
Hamilton Beach Brands Holding Company Fundamental Analysis (NYSE: HBB)
Hamilton Beach Brands Holding Company (NYSE: HBB) shows moderate financial fundamentals with a PE ratio of 7.81, profit margin of 9.41%, and ROE of 30.70%. The company generates $0.6B in annual revenue with weak year-over-year growth of -7.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HBB's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHBB demonstrates superior asset utilization.
Valuation Score
ExcellentHBB trades at attractive valuation levels.
Growth Score
WeakHBB faces weak or negative growth trends.
Financial Health Score
ExcellentHBB maintains a strong and stable balance sheet.
Profitability Score
ModerateHBB maintains healthy but balanced margins.
Key Financial Metrics
Is HBB Expensive or Cheap?
P/E Ratio
HBB trades at 7.81 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HBB's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Hamilton Beach Brands Holding Company at 2.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.54 times EBITDA. This is generally considered low.
How Well Does HBB Make Money?
Net Profit Margin
For every $100 in sales, Hamilton Beach Brands Holding Company keeps $9.41 as profit after all expenses.
Operating Margin
Core operations generate 12.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.70 in profit for every $100 of shareholder equity.
ROA
Hamilton Beach Brands Holding Company generates $13.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hamilton Beach Brands Holding Company produces operating cash flow of $99.18M, showing steady but balanced cash generation.
Free Cash Flow
Hamilton Beach Brands Holding Company generates strong free cash flow of $96.97M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.18 in free cash annually.
FCF Yield
HBB converts 21.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How HBB Stacks Against Its Sector Peers
| Metric | HBB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.81 | 27.12 | Better (Cheaper) |
| ROE | 30.70% | 952.00% | Weak |
| Net Margin | 9.41% | -4910.00% (disorted) | Weak |
| Debt/Equity | 0.41 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 3.13 | 2.28 | Strong Liquidity |
| ROA | 13.97% | 318.00% | Weak |
HBB outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hamilton Beach Brands Holding Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.19%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
-41.86%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
141.15%
Industry Style: Cyclical, Growth, Discretionary
High Growth