Build-A-Bear WorkshopBBW -2.03%70 Return-on-Tangible-Equity is 46.61% as of Apr. 2026, which is 115% above its 10-year median of 21.64. GuruFocus rates BBW with a GF Score™ of 70/100 and a GF Value™ of $39.25 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,056 Retail - Cyclical companies, Build-A-Bear Workshop ranks better than 85.23% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Build-A-Bear Workshop's annualized net income for the quarter that ended in Apr. 2026 was $73.2 Mil. Build-A-Bear Workshop's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $157.0 Mil. Therefore, Build-A-Bear Workshop's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 46.61%.
The historical rank and industry rank for Build-A-Bear Workshop's Return-on-Tangible-Equity or its related term are showing as below:
BBW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -29.48 Med: 21.64 Max: 58.72
Current: 35.89
During the past 13 years, Build-A-Bear Workshop's highest Return-on-Tangible-Equity was 58.72%. The lowest was -29.48%. And the median was 21.64%.
BBW's Return-on-Tangible-Equity is ranked better than 85.23% of 1056
companies
in the Retail - Cyclical industry
Industry Median: 8.275
vs BBW: 35.89
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Build-A-Bear Workshop Return-on-Tangible-Equity Related Terms
Build-A-Bear Workshop Return-on-Tangible-Equity Historical Data
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The historical data trend for Build-A-Bear Workshop's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BBW vs BNED, EVGO, FLWS: Return-on-Tangible-Equity Comparison
For the Specialty Retail subindustry, Build-A-Bear Workshop's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Build-A-Bear Workshop Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Build-A-Bear Workshop's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Build-A-Bear Workshop's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 46.61% mean?
Build-A-Bear Workshop (BBW) has a Return-on-Tangible-Equity of 46.61% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Build-A-Bear Workshop and its competitors. This is 115% above median its historical median of 21.64. According to the industry distribution chart, Build-A-Bear Workshop ranks #156 out of 1056 companies in the Retail - Cyclical industry, placing it in the top 14.8%.
Is Build-A-Bear Workshop's Return-on-Tangible-Equity too high?
Build-A-Bear Workshop's current Return-on-Tangible-Equity of 46.61% is 115% above median its 10-year median of 21.64. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.28. Build-A-Bear Workshop's value of 46.61% is 463.3% above this industry median. Based on the distribution chart, Build-A-Bear Workshop ranks #156 out of 1056 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Build-A-Bear Workshop has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Build-A-Bear Workshop's Return-on-Tangible-Equity compare to BNED and EVGO?
According to the Retail - Cyclical industry distribution chart, Build-A-Bear Workshop ranks #156 out of 1056 companies for Return-on-Tangible-Equity. This places Build-A-Bear Workshop in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.28. Build-A-Bear Workshop's value of 46.61% is 463.3% above this benchmark. While the company's 10-year median is 21.64 vs. the industry median of 8.28, Build-A-Bear Workshop has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.28, based on 1,056 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Build-A-Bear Workshop's current Return-on-Tangible-Equity of 46.61% is 463.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Build-A-Bear Workshop and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Build-A-Bear Workshop's current Return-on-Tangible-Equity is 46.61%, which is 115% above median its own 10-year median of 21.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Build-A-Bear Workshop stock overvalued right now?
Based on GuruFocus' analysis, Build-A-Bear Workshop (BBW) is currently considered Modestly Undervalued. The stock's GF Value™ is $39.25, compared to a current price of $30.39 — trading 22.6% below its estimated fair value. The current Return-on-Tangible-Equity is 46.61%, which is 115% above median its 10-year median of 21.64 and 463.3% above the Retail - Cyclical industry median of 8.28. Build-A-Bear Workshop's overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Build-A-Bear Workshop (BBW), the current Return-on-Tangible-Equity is 46.61% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Build-A-Bear Workshop (BBW) Overvalued in 2026?
Based on GuruFocus' analysis, Build-A-Bear Workshop stock appears to be undervalued.
The current stock price of $30.39 is trading 22.6% below its estimated GF Value™ of $39.25.
GuruFocus considers Build-A-Bear Workshop to be Modestly Undervalued.
Key valuation signals for BBW:
Return-on-Tangible-Equity: 46.61% (115% above median its 10-year median of 21.64)
GF Value™: $39.25 vs. price of $30.39 (22.6% below fair value)
Industry Position: 463.3% above the Retail - Cyclical median (#156 of 1056)
No single metric tells the full story. See the BBW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Build-A-Bear Workshop Inc is a U.S.-based specialty retailer of customized stuffed animals and related products. The company operates through three segments: Direct-to-consumer segment with key revenue, includes the operating activities of corporately-managed locations and other retail delivery operations in the U.S., Canada, U.K., Ireland, and two e-commerce sites, the international franchising segment includes royalties and product and fixture sales from other international operations under franchise agreements, and the commercial segment includes the transactions with other businesses, mainly comprised of licensing the intellectual properties for third-party use and wholesale activities.
70GF Score
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