Hamilton Beach Brands Holding Co (HBB) stock analysis

P/E below its 5-year median

Hamilton Beach Brands's P/E of 6.9 is below its own 5-year median of 8.2.

P/E below the industry

Hamilton Beach Brands's P/E of 6.9 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 32.5.

EV/EBITDA below its 5-year median

Hamilton Beach Brands's EV/EBITDA of 3.6 is below its 5-year median of 4.5.

P/B below the industry

Hamilton Beach Brands's price-to-book of 1.86 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 3.01.

Trading below fair value

The share price of $30.49 is below our fair value estimate of $81.56.

Margin of safety over 20%

The price is 62.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 85.9% over the last twelve months, against a 5-year average of -10.6% a year.

Growing faster than the industry

Revenue grew 1.7% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is -0.2%.

Guidance issued

The latest outlook (2026 cash flow from operating activities less cash used for investing activities, Aug 5, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 34.4% over the last twelve months, against 25.0% a year earlier.

Return on equity over 15%

Return on equity was 30.8% over the last twelve months and averaged 19.8% over five years.

Return on capital over 10%

Return on invested capital was 42.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Hamilton Beach Brands's return on equity of 30.8% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -3.3%.

Earnings shrank over 5 years

Net income shrank 10.6% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.6% over the last twelve months, against a 5-year average of 4.1%.

Net margin above the industry

Hamilton Beach Brands's net margin of 9.6% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -3.1%.

No debt

Hamilton Beach Brands has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 2.43 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.39; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Hamilton Beach Brands paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Hamilton Beach Brands yields 1.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 11.1% of net income.

Covered by free cash flow

Dividends take 6.2% of free cash flow.