Hamilton Beach Brands Holding Company (HBB) AI Stock Analysis

Hamilton Beach Brands Holding Company

(NYSE:HBB)

Select Model

Rating:68Neutral

Price Target:$35.00▲(6.54% Upside)

Action:reiterated

Date:09/25/26

Hamilton Beach earns a moderately above-average score. The most influential factor is financial performance, where a dramatically deleveraged balance sheet and improving margins are offset by flat-to-declining revenue and very volatile cash flow — free cash flow fell 82% in 2025, and the low operating-cash-flow-to-net-income ratio raises earnings-quality concerns. Supporting the score are a low 8.1x P/E plus a 1.4% dividend yield and a strong price trend, with shares well above all major moving averages, though momentum indicators are stretched after a sharp advance. The latest earnings call is a modest positive on revenue, cash generation, inventory reduction, and Health segment growth, but is tempered by the one-time nature of the $36.5M tariff refund, ex-refund margin compression, and guidance for lower operating profit amid rising commodity, freight, advertising, and ERP-depreciation costs.

Positive Factors

Strong cash generationRecent cash generation is a major fundamental strength, with free cash flow closely tracking reported earnings and supporting internal funding. If sustained, this provides flexibility for product investment, marketing, debt management, and working-capital needs without relying heavily on external capital.

Negative Factors

Non-recurring profit boostThe tariff refund significantly inflated recent reported profitability but will not recur as an operating revenue source. Future results therefore face a difficult comparison, and underlying earnings power must be judged without the benefit of this exceptional cash and margin contribution.

Hamilton Beach Brands Holding Company (HBB) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $436.47M
Dividend Yield: 1.51%
Average Volume (3M): 83.61K
Price to Earnings (P/E): 7.6
Beta (1Y): 1.10
Revenue Growth: -3.33%
EPS Growth: 80.91%
Country: US
Employees: 650
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Furnishings, Fixtures & Appliances

Hamilton Beach Brands Holding Company Business Overview & Revenue Model

Company Description

Hamilton Beach Brands Holding Company (HBB) operates as a global entity, specializing in the design, marketing, and distribution of a diverse range of small electric household appliances and specialty housewares. Its operations extend across the Unit...

How the Company Makes Money

HBB makes money primarily by selling small electric household appliances to retailers and distributors, with revenue recognized from the sale and shipment of branded products into retail, e-commerce, and other distribution channels. Its core revenue...

Hamilton Beach Brands Holding Company Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:38.17%|Next Earnings Date:Aug 04, 2020

Earnings Call SentimentPositive

The call presents solid near-term financial improvements—notably revenue growth, large net income and EPS gains, a strong swing to positive operating cash flow, and clear product/channel momentum. However, much of the quarter-to-quarter profit improvement was driven by a one-time $36.5 million tariff refund. Excluding that refund, underlying gross margin was modest and the company warns of H2 headwinds from higher commodity and freight costs, plus planned incremental advertising and ERP-related depreciation that are expected to pressure operating profit for the year. Management is investing the refund into growth initiatives and highlights strong momentum in Health and commercial segments, but investors should note the refund’s non-recurring nature and the downgraded operating profit outlook.

Positive Updates

Revenue Growth

Q2 revenue of $142.6 million, up 11.6% year-over-year from $127.8 million, driven primarily by recovery in U.S. consumer volumes after retailer pause in the prior-year period.

Negative Updates

One-Time Nature of Tariff Refund Boost

The large Q2 improvement in gross profit and operating profit was materially driven by a $36.5 million one-time IEPA tariff refund; management excludes the refund from forward-looking operating commentary, highlighting the non-recurring nature of the benefit.

Company Guidance

The company said 2026 guidance (excluding the one‑time IEPA tariff refund) calls for revenue to "approach the mid‑single‑digit" growth range, gross margins to "improve modestly" over 2025 (revising prior guidance from "similar to slightly better"), operating profit to be down high single digits (now inclusive of an incremental $6.0 million planned advertising spend and roughly $6.0 million of accelerated depreciation on the legacy ERP versus prior guidance for a low‑teens percentage decline), and cash used for investing activities to be roughly $35–$45 million; management also reiterated it will reinvest a portion of the refund into additional H2 brand‑building and marketing.

Hamilton Beach Brands Holding Company Financial Statement Overview

Summary

Blended view of the Income Statement (58), Balance Sheet (65), and Cash Flow (50) scores. The balance sheet is the clear strength: total debt fell from ~$164M in 2022 to ~$42M in 2025, cutting debt-to-equity from 1.31x to 0.23x, while equity grew steadily to ~$183M and ROE stayed solid at ~14.5%. Profitability is improving, with gross margin expanding from ~20% (2022) to ~25.7% (2025) and net margin rising toward ~4.4%, with TTM projections notably stronger. Offsetting this, revenue has been flat to declining (~7.3% drop in 2025) and cash generation has been highly volatile — operating cash flow collapsed from $88.6M in 2023 to $13.8M in 2025 and free cash flow fell 82% year-over-year, raising earnings-quality and working-capital questions.

Income Statement

58Neutral

Balance Sheet

65Positive

Cash Flow

50Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	610.30M	606.85M	654.69M	625.63M	640.95M	658.39M
Gross Profit	201.94M	156.15M	170.21M	143.68M	129.11M	136.50M
EBITDA	86.03M	42.09M	38.79M	39.06M	41.90M	36.72M
Net Income	57.44M	26.45M	30.76M	25.24M	25.27M	21.31M
Balance Sheet
Total Assets	411.29M	397.62M	415.07M	384.70M	388.95M	382.50M
Cash, Cash Equivalents and Short-Term Investments	101.47M	47.31M	45.64M	15.37M	928.00K	1.13M
Total Debt	89.59M	41.91M	94.20M	98.09M	163.57M	96.84M
Total Liabilities	194.55M	214.78M	249.16M	237.44M	264.42M	280.23M
Stockholders Equity	216.73M	182.84M	165.90M	147.27M	124.53M	102.28M
Cash Flow
Free Cash Flow	96.92M	11.04M	62.22M	85.22M	-5.70M	6.01M
Operating Cash Flow	99.13M	13.81M	65.42M	88.64M	-3.42M	17.86M
Investing Cash Flow	2.50M	1.93M	-13.88M	-5.17M	-2.28M	-11.84M
Financing Cash Flow	-11.35M	-15.42M	-20.95M	-70.07M	5.58M	-7.27M

Hamilton Beach Brands Holding Company Technical Analysis

Technical Analysis SentimentNeutral

Last Price32.85

Price Trends

50DMA33.42Negative

100DMA28.76Positive

200DMA23.78Positive

Market Momentum

MACD-0.43Positive

RSI43.09Neutral

STOCH18.61Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBB, the sentiment is Neutral. The current price of 32.85 is below the 20-day moving average (MA) of 33.89, below the 50-day MA of 33.42, and above the 200-day MA of 23.78, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 18.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HBB.

Hamilton Beach Brands Holding Company Risk Analysis

Hamilton Beach Brands Holding Company disclosed 32 risk factors in its most recent earnings report. Hamilton Beach Brands Holding Company reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Hamilton Beach Brands Holding Company Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HBB against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TILE	85Outperform	$2.13B	14.72	18.54%	0.30%	6.54%	53.02%
HBB	68Neutral	$436.47M	7.62	30.70%	1.51%	-3.33%	80.91%
LZB	65Neutral	$1.22B	15.28	7.86%	3.18%	0.20%	-10.08%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	60Neutral	$1.48B	15.24	7.34%	3.49%	1.20%	―
LCUT	51Neutral	$194.49M	5.81	15.86%	2.01%	-1.48%	―
MBC	46Neutral	$1.48B	-10.52	-6.44%	―	-0.01%	-192.77%

* Consumer Cyclical Sector Average

Performance Comparison

HBB and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HBB	Hamilton Beach Brands Company	32.47	19.04	141.72%
MLKN	MillerKnoll, Inc.	21.49	6.84	46.73%
TILE	Interface Inc	36.81	11.04	42.82%
LZB	La-Z-Boy Incorporated	30.44	-0.17	-0.56%
LCUT	Lifetime Brands	8.46	5.52	187.46%
MBC	MasterBrand Inc	7.26	-5.19	-41.69%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 25, 2026

Hamilton Beach Brands Holding Company AI Stock Analysis