U.S. Markets closed

A Look At Hamilton Beach Brands Holding Company's (NYSE:HBB) Exceptional Fundamentals

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of Hamilton Beach Brands Holding Company (NYSE:HBB), there's is a financially-sound company with an impressive history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Hamilton Beach Brands Holding here.

Undervalued with proven track record

In the previous year, HBB has ramped up its bottom line by 22%, with its latest earnings level surpassing its average level over the last five years. Not only did HBB outperformed its past performance, its growth also surpassed the Consumer Durables industry expansion, which generated a 17% earnings growth. This is an notable feat for the company. HBB's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that HBB manages its cash and cost levels well, which is an important determinant of the company’s health. HBB seems to have put its debt to good use, generating operating cash levels of 0.28x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NYSE:HBB Income Statement, September 13th 2019

HBB is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if HBB's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, HBB's share price is trading below the group's average. This bolsters the proposition that HBB's price is currently discounted.

NYSE:HBB Price Estimation Relative to Market, September 13th 2019

Next Steps:

For Hamilton Beach Brands Holding, there are three relevant aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for HBB’s future growth? Take a look at our free research report of analyst consensus for HBB’s outlook.
  2. Dividend Income vs Capital Gains: Does HBB return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from HBB as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HBB? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.