# Build-A-Bear Workshop (BBW.US)

Canonical: https://gigainvestors.com/s/BBW

Analysis as of: 2026-10-16T07:26:49.200Z. Financial observations: FY2019–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $26.10 per share; close as of 2026-10-15.

Estimated value: low $47.40 per share, central $53.90 per share, high $62.54 per share. Buy at or below the central value $53.90 per share. Valuation as of 2026-10-16T07:26:49.200Z; scenarios are not confidence intervals.

Expected annual return: 18.0% at the stated quote. About 18.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 8 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 2.18×

Chart: Operating margin; fiscal year observations.

- FY2019: -0.05×

- FY2020: -0.04×

- FY2021: -0.14×

- FY2022: 0.09×

- FY2023: 0.11×

- FY2024: 0.13×

- FY2025: 0.13×

- FY2026: 0.12×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 21.1%

- ROIC, second-lowest year: -16.7%

- Typical minus recent gross margin: -2.1 pp

- Typical gross margin (annual median): 52.8%

- Recent gross margin (lower of latest and 3-year median): 54.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: 21.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: -19.0%

- FY2020: -3.7%

- FY2021: -16.7%

- FY2022: 22.5%

- FY2023: 23.5%

- FY2024: 30.8%

- FY2025: 24.5%

- FY2026: 19.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.01×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $255M

- Net income, five-year total: $252M

- Return on incremental invested capital: 131.7%

- Working capital / revenue, annual change: 0.1 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.09×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 0.98×

- FY2026: 0.99×

### management: pass

- Historical market-dollar context (not the management verdict): 2019 to 2026 (7 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -16.7% vs 24.5%

- Per-share earnings: -1.23 to 3.80 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -2.6%

- Market cap gain: $694M

- Cumulative retained earnings: $68M

- Diluted shares, 5-year annual growth: -2.6%

- $1 test, starting fiscal year: FY2019

- $1 test, ending fiscal year: FY2026

- Per-share value change: $5.03

- Per-share value, starting three-year median: -$1.23

- Per-share value, ending three-year median: $3.80

- Buybacks concentrated in cheaper years (correlation): 0.67

- Average buyback yield: 3.4%

- Buyback history: 8 years

- Debt-funded buybacks: No

- ROIC, first three-year median: -16.7%

- ROIC, last three-year median: 24.5%

Chart: Earnings per share; fiscal year observations.

- FY2019: -$1.23

- FY2020: $0.02

- FY2021: -$1.65

- FY2022: $2.93

- FY2023: $3.15

- FY2024: $3.65

- FY2025: $3.80

- FY2026: $3.99

### accounting: pass

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 1.25×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.25×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -16.1%

- FY2020: -7.2%

- FY2021: -14.5%

- FY2022: 7.1%

- FY2023: 0.3%

- FY2024: -4.2%

- FY2025: 1.6%

- FY2026: -3.7%

## Holders

- [Bill Miller](https://gigainvestors.com/LMM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 60% since Sep 2025 · "Build-A-Bear Workshop slumps after lowering full-year revenue guidance" (seekingalpha.com, Aug 2026) · sales +6.7%

Story as of 2026-10-16T09:58:22.496Z; price observation 2026-10-15.

Price needs cash profits to shrink 8.3% a year for ten years

- 2025-05-29: Build-A-Bear updates 2025 pre-tax guidance to $61M-$67M while expanding global footprint ([seekingalpha.com](https://seekingalpha.com/news/4453575-build-a-bear-updates-2025-pre-tax-guidance-to-61m-67m-while-expanding-global-footprint?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-08-28: Build-A-Bear increases 2025 guidance, targets at least 60 new locations amid record Q2 results ([seekingalpha.com](https://seekingalpha.com/news/4490156-build-a-bear-increases-2025-guidance-targets-at-least-60-new-locations-amid-record-q2-results?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-27: Build-A-Bear Workshop slumps after lowering full-year revenue guidance ([seekingalpha.com](https://seekingalpha.com/news/4637466-build-a-bear-workshop-slumps-after-lowering-full-year-revenue-guidance?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +6.7%; source https://www.sec.gov/Archives/edgar/data/1113809/000143774926012501/bbw20251218c_10k.htm; observed 2026-04-16.

- FY2019: $337M 

- FY2020: $339M 

- FY2021: $255M 

- FY2022: $412M 

- FY2023: $468M 

- FY2024: $486M 

- FY2025: $496M 

- FY2026: $530M 

### Gross margin · FY2026

gross margin 55.8%; source https://www.sec.gov/Archives/edgar/data/1113809/000143774926012501/bbw20251218c_10k.htm; observed 2026-04-16.

- FY2019: 41.2% 

- FY2020: 45.4% 

- FY2021: 38.1% 

- FY2022: 53.0% 

- FY2023: 52.5% 

- FY2024: 54.4% 

- FY2025: 54.9% 

- FY2026: 55.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty retail; annual sales are USD 529.8 million.

- Source: https://www.sec.gov/Archives/edgar/data/1113809/000143774926012501/bbw20251218c_10k.htm (filed 2026-04-16); FY2026: revenue 529832000; grossProfit 295629000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 54.4% to 55.8% during 2024–26; it earns 21.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); FY2024: grossProfit / revenue = 54.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); FY2025: grossProfit / revenue = 54.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1113809/000143774926012501/bbw20251218c_10k.htm (filed 2026-04-16); FY2026: grossProfit / revenue = 55.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); 8-year return on capital observations [[2019,-0.19043941376602982],[2020,-0.0370931392383623],[2021,-0.1666850034870019],[2022,0.2247212099016477],[2023,0.23451159606763386],[2024,0.30825266471525614],[2025,0.245396129236336],[2026,0.19635747302090975]]; median 0.21053934146127873. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 19.4% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); FY2020: growth capex 0; upkeep 12384000; owner earnings 1582000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); FY2022: growth capex 0; upkeep 8130000; owner earnings 51411000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); FY2023: growth capex 1152000; upkeep 12482000; owner earnings 47985000. Growth capex / owner earnings = 0.02400750234448265.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); FY2024: growth capex 4638000; upkeep 13657000; owner earnings 52805000. Growth capex / owner earnings = 0.08783259161064293.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); FY2025: growth capex 3610852.7662893552; upkeep 15706147.233710645; owner earnings 50850852.76628935. Growth capex / owner earnings = 0.07100869641035999.

- Source: https://www.sec.gov/Archives/edgar/data/1113809/000143774926012501/bbw20251218c_10k.htm (filed 2026-04-16); FY2026: growth capex 10021467.706754588; upkeep 15523532.293245412; owner earnings 51631467.70675459. Growth capex / owner earnings = 0.19409612300142978.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); Incremental return on capital 1.3166955973116976, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); Dividend observations: [[2019,0],[2020,0],[2021,0],[2022,19933000],[2023,292000],[2024,22062000],[2025,11024000],[2026,11533000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1113809/000143774926012501/bbw20251218c_10k.htm (filed 2026-04-16); FY2026: cash repurchases 27735000 USD.

### What the price says

The price assumes cash profits shrink 8.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-16); Ten-year compound average after fade. Initial solved rate -0.129435388259376. Price 26.1; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $13.50 per share

- 2016-11: $14.35 per share

- 2016-12: $13.75 per share

- 2017-01: $12.00 per share

- 2017-02: $9.05 per share

- 2017-03: $8.85 per share

- 2017-04: $10.40 per share

- 2017-05: $10.75 per share

- 2017-06: $10.45 per share

- 2017-07: $9.60 per share

- 2017-08: $9.20 per share

- 2017-09: $9.15 per share

- 2017-10: $7.80 per share

- 2017-11: $8.20 per share

- 2017-12: $9.20 per share

- 2018-01: $8.60 per share

- 2018-02: $9.10 per share

- 2018-03: $9.15 per share

- 2018-04: $9.10 per share

- 2018-05: $8.00 per share

- 2018-06: $7.60 per share

- 2018-07: $8.10 per share

- 2018-08: $9.20 per share

- 2018-09: $9.05 per share

- 2018-10: $8.56 per share

- 2018-11: $6.10 per share

- 2018-12: $3.95 per share

- 2019-01: $4.73 per share

- 2019-02: $5.15 per share

- 2019-03: $6.10 per share

- 2019-04: $5.60 per share

- 2019-05: $5.04 per share

- 2019-06: $5.59 per share

- 2019-07: $4.27 per share

- 2019-08: $2.48 per share

- 2019-09: $3.15 per share

- 2019-10: $3.48 per share

- 2019-11: $3.00 per share

- 2019-12: $3.24 per share

- 2020-01: $4.18 per share

- 2020-02: $3.81 per share

- 2020-03: $1.43 per share

- 2020-04: $2.54 per share

- 2020-05: $2.27 per share

- 2020-06: $2.18 per share

- 2020-07: $2.36 per share

- 2020-08: $2.58 per share

- 2020-09: $2.50 per share

- 2020-10: $4.13 per share

- 2020-11: $4.09 per share

- 2020-12: $4.27 per share

- 2021-01: $5.61 per share

- 2021-02: $7.03 per share

- 2021-03: $6.90 per share

- 2021-04: $8.04 per share

- 2021-05: $15.27 per share

- 2021-06: $17.31 per share

- 2021-07: $15.20 per share

- 2021-08: $18.64 per share

- 2021-09: $16.94 per share

- 2021-10: $15.68 per share

- 2021-11: $17.06 per share

- 2021-12: $19.52 per share

- 2022-01: $17.84 per share

- 2022-02: $20.43 per share

- 2022-03: $18.28 per share

- 2022-04: $18.94 per share

- 2022-05: $20.39 per share

- 2022-06: $16.42 per share

- 2022-07: $15.97 per share

- 2022-08: $15.32 per share

- 2022-09: $13.33 per share

- 2022-10: $17.59 per share

- 2022-11: $23.75 per share

- 2022-12: $23.84 per share

- 2023-01: $24.56 per share

- 2023-02: $20.95 per share

- 2023-03: $23.24 per share

- 2023-04: $23.20 per share

- 2023-05: $18.18 per share

- 2023-06: $21.42 per share

- 2023-07: $24.55 per share

- 2023-08: $26.37 per share

- 2023-09: $29.41 per share

- 2023-10: $24.80 per share

- 2023-11: $24.43 per share

- 2023-12: $22.99 per share

- 2024-01: $22.53 per share

- 2024-02: $23.94 per share

- 2024-03: $29.87 per share

- 2024-04: $30.16 per share

- 2024-05: $27.07 per share

- 2024-06: $25.27 per share

- 2024-07: $27.12 per share

- 2024-08: $33.38 per share

- 2024-09: $34.37 per share

- 2024-10: $38.09 per share

- 2024-11: $37.99 per share

- 2024-12: $46.04 per share

- 2025-01: $42.34 per share

- 2025-02: $40.92 per share

- 2025-03: $37.17 per share

- 2025-04: $35.28 per share

- 2025-05: $51.04 per share

- 2025-06: $51.56 per share

- 2025-07: $50.71 per share

- 2025-08: $60.81 per share

- 2025-09: $65.21 per share

- 2025-10: $54.22 per share

- 2025-11: $53.10 per share

- 2025-12: $61.27 per share

- 2026-01: $59.68 per share

- 2026-02: $48.66 per share

- 2026-03: $37.45 per share

- 2026-04: $36.94 per share

- 2026-05: $37.21 per share

- 2026-06: $30.61 per share

- 2026-07: $33.92 per share

- 2026-08: $30.27 per share

- 2026-09: $25.07 per share

- 2026-10: $26.10 per share

## Annual estimated value (USD per share)

- FY2023: low $3.72 per share, central $3.94 per share, high $4.22 per share

- FY2024: low $40.04 per share, central $45.23 per share, high $52.14 per share

- FY2025: low $42.16 per share, central $47.79 per share, high $55.29 per share

- FY2026: low $46.63 per share, central $52.88 per share, high $61.22 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1113809/000143774926012501/bbw20251218c_10k.htm); period 2026-01-31, filed 2026-04-16.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Bill Miller](https://gigainvestors.com/LMM): 133,567 BBW shares; USD 4,088,000 reported position value; 0.97% of portfolio; add; quarter 2026 Q2.

# BBW — Build-A-Bear Workshop Inc.

Held by 1 investor · USD 4,088,000 total · 2026 Q2 · reported price USD 30.61 (split-adjusted).
Page: https://gigainvestors.com/s/BBW

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Bill Miller (https://gigainvestors.com/LMM) | USD 4,088,000 | 1.0% | add +28.76% |

## Total held by quarter

- 2024 Q2: USD 1,768,900 · 1 holder · USD 25.27
- 2024 Q3: USD 5,155,500 · 1 holder · USD 34.37
- 2024 Q4: USD 4,373,800 · 1 holder · USD 46.04
- 2025 Q1: USD 3,717,000 · 1 holder · USD 37.17
- 2025 Q2: USD 5,413,800 · 1 holder · USD 51.56
- 2025 Q3: USD 6,390,580 · 1 holder · USD 65.21
- 2025 Q4: USD 4,779,060 · 1 holder · USD 61.27
- 2026 Q1: USD 3,884,838 · 1 holder · USD 37.45
- 2026 Q2: USD 4,088,000 · 1 holder · USD 30.61