HBBHamilton Beach Brands Holding Company
Is the business good?
A genuinely good business: earnings fully cash-backed (1.7×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 19% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HBB?
Hamilton Beach Brands Holding Company earns 52% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 43 points above what the capital costs: growth creates value
- Operating margin
- 13%
Operating margin · Furnishings, Fixtures & Appliances median 7.8% · 12 months to Q2 2026
- Cash conversion
- 1.73×
Cash conversion · 0.12× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.16%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 6.2% |
| FY2021 | 4.8% |
| FY2022 | 6.0% |
| FY2023 | 5.6% |
| FY2024 | 6.6% |
| FY2025 | 6.0% |
Details›
- Gross margin12 months to Q2 2026
- 33%
- Operating margin12 months to Q2 2026
- 13%
- Net margin12 months to Q2 2026
- 9.4%
- Free cash flow margin
- 16%
- Revenue, trailing twelve months
- $610M
- Free cash flow, trailing twelve months
- $97M
- Net income, trailing twelve months
- $57M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 52%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Furnishings, Fixtures & Appliances
Ranks #4 of 13 by RyuScore