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1. Company Snapshot

1.a. Company Description

Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances in the United States and internationally.It offers air fryers, blenders, food processors, coffee makers, indoor electric grills, irons, juicers, mixers, slow cookers, toasters, and toaster ovens.The company also provides air purifiers under the TrueAir brand; consumer products under the Hamilton Beach and Proctor Silex brands; commercial products for restaurants, fast food chains, bars, and hotels under the Hamilton Beach Commercial and Proctor Silex Commercial brands; and personal care products under the Brightline brand, as well as products under the Hamilton Beach Professional in the premium market.


In addition, it offers countertop appliances under the Wolf Gourmet brand; garment care products under CHI brand; farm-to-table and field-to-table food processing equipment under the Weston brand; cocktail delivery system under the Bartesian brand; and supplies private label products.The company sells its products through a network of mass merchandisers, e-commerce retailers, national department stores, variety store and drug store chains, specialty home retailers, distributors, restaurants, bars, hotels, and other retail outlets.Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia.

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1.b. Last Insights on HBB

Hamilton Beach Brands Holding Company's recent performance was negatively impacted by tariff headwinds and rising costs. Q2 revenues declined 18% year-over-year due to disrupted sales. Despite this, the company implemented cost cuts and launched new product lines, signaling long-term growth potential. The acquisition of HealthBeacon has improved revenue and profitability. A quarterly dividend of $0.12 per share was declared, demonstrating the company's commitment to shareholder returns. Tariff concerns and US-China trade tensions remain a challenge, but the company is actively diversifying manufacturing away from China.

1.c. Company Highlights

2. Hamilton Beach Brands' Q3 2025 Earnings: A Step Towards Normalization

Hamilton Beach Brands reported revenue of $132.8 million for the third quarter of 2025, a decline of 15.2% year-over-year, but an improvement of 300 basis points compared to the second quarter's year-over-year performance. Gross profit was $28 million, or 21.1% of total revenue. Excluding the $5 million one-time tariff costs, gross margin would have been 24.8%. The company's EPS came in at $1.4, beating estimates of $0.81. Operating profit was $2.9 million, or 2.2% of total revenue, down from $10.6 million, or 6.8% of total revenue, in the third quarter of 2024.

Publication Date: Nov -24

📋 Highlights

Tariff Costs and Gross Margin Impact

The $5 million one-time tariff costs, resulting from temporary 125% tariff rates incurred in April, had a significant impact on the company's gross margin. As clarified by Sally Cunningham, this cost flowed through the P&L in the third quarter. Despite this headwind, a favorable mix shift driven by higher-margin commercial and health businesses partially offset the impact.

Operational Progress and Outlook

The company has made progress in navigating the dynamic trade environment, with greater clarity around go-forward tariff rates. Hamilton Beach Brands anticipates further improvement in its sales trend and gross margins in the fourth quarter. The successful launch of the high-end Lotus brand and a strong pipeline of new products in high-growth categories are expected to drive growth.

Valuation and Growth Prospects

With a P/E Ratio of 6.65 and an ROE of 19.42%, the company's valuation appears reasonable. The market seems to have priced in the challenges faced by the company, but the anticipated growth in sales and gross margins could drive further upside. Analysts estimate revenue growth at nan% next year, indicating a potential turnaround. The company's efforts to diversify manufacturing away from China and implement price adjustments are expected to support this growth.

Retailer Dynamics and Order Patterns

According to Scott Tidey, the largest retailer, who had paused orders in the second quarter, has returned to normal ordering patterns. The company has been shipping to them for several months and exceeded expectations in October, indicating a positive trend in order patterns and a potential driver of future growth.

3. NewsRoom

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2 Tariffic Microcaps To Check Out

Dec -02

Source: zacks.com

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HAMILTON BEACH BRANDS HOLDING COMPANY DECLARES QUARTERLY DIVIDEND AND ANNOUNCES STOCK REPURCHASE PROGRAM

Nov -20

Source: prnewswire.com

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Hamilton Beach Q3 Profit Falls Y/Y on Tariff-Driven Margin Hit

Nov -07

Source: zacks.com

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Hamilton Beach Brands Holding Company (HBB) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES THIRD QUARTER 2025 RESULTS

Nov -05

Source: prnewswire.com

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HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES DATES OF ITS 2025 THIRD QUARTER EARNINGS RELEASE AND CONFERENCE CALL

Oct -29

Source: prnewswire.com

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Hamilton Beach Brands: Shares Are Too Cheap, Even With Continued Weakness

Sep -22

Source: seekingalpha.com

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HAMILTON BEACH BRANDS HOLDING COMPANY DECLARES QUARTERLY DIVIDEND

Aug -20

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.07%)

6. Segments

Consumer

Expected Growth: 3%

Hamilton Beach Brands Holding Company's 3% growth in the consumer segment is driven by increasing demand for small kitchen appliances, innovative product launches, and strategic marketing efforts. Additionally, the company's focus on e-commerce and expanding distribution channels have contributed to the growth. Furthermore, the rising trend of home cooking and healthy eating has also boosted sales of the company's products.

Commercial

Expected Growth: 4%

Hamilton Beach Brands Holding Company's commercial segment growth is driven by increasing demand for small kitchen appliances, expansion into e-commerce channels, and strategic partnerships with major retailers. Additionally, the company's focus on innovative product designs, marketing campaigns, and operational efficiencies have contributed to its growth.

Licensing

Expected Growth: 1%

Strong brand recognition, increasing demand for home appliances, and strategic partnerships drive licensing growth. Hamilton Beach Brands Holding Company's established reputation and wide distribution network facilitate access to new markets, while innovative products and competitive pricing attract consumers, resulting in accelerated growth.

7. Detailed Products

Coffee Makers

Hamilton Beach Brands Holding Company offers a wide range of coffee makers, from single-serve to full-pot brewers, with features like programmable timers, thermal carafes, and built-in grinders.

Blenders

The company's blenders are designed for smoothie making, frozen drink blending, and hot soups, with features like multiple speed settings and pulse functions.

Slow Cookers

Hamilton Beach Brands Holding Company's slow cookers are perfect for cooking a variety of dishes, from soups to stews, with features like programmable timers and locking lids.

Toasters

The company's toasters offer features like defrosting, reheating, and bagel settings, with options for 2-slice or 4-slice toasting.

Stand Mixers

Hamilton Beach Brands Holding Company's stand mixers are designed for heavy-duty mixing, with features like planetary mixing action and large capacity bowls.

Food Processors

The company's food processors are perfect for chopping, slicing, shredding, and pureeing ingredients, with features like multiple discs and bowls.

Electric Kettles

Hamilton Beach Brands Holding Company's electric kettles quickly boil water for tea, coffee, or instant soups, with features like rapid boiling and keep-warm functions.

Panini Presses

The company's panini presses are designed for making paninis, sandwiches, and wraps, with features like adjustable heat and pressure controls.

8. Hamilton Beach Brands Holding Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Hamilton Beach Brands Holding Company faces moderate threat from substitutes due to the presence of alternative household appliances and kitchenware products from competitors.

Bargaining Power Of Customers

Hamilton Beach Brands Holding Company has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Hamilton Beach Brands Holding Company relies on a few large suppliers for raw materials, giving them some bargaining power, but the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The household appliances and kitchenware industry has high barriers to entry, including significant capital requirements and established distribution networks, making it difficult for new entrants to compete with Hamilton Beach Brands Holding Company.

Intensity Of Rivalry

The household appliances and kitchenware industry is highly competitive, with many established players, leading to intense rivalry and pricing pressure for Hamilton Beach Brands Holding Company.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.61%
Debt Cost 3.95%
Equity Weight 72.39%
Equity Cost 8.77%
WACC 7.44%
Leverage 38.13%

11. Quality Control: Hamilton Beach Brands Holding Company passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ethan Allen

A-Score: 6.2/10

Value: 6.1

Growth: 3.8

Quality: 6.4

Yield: 10.0

Momentum: 4.0

Volatility: 6.7

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A-Score: 5.7/10

Value: 9.1

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Quality: 3.6

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La-Z-Boy

A-Score: 5.3/10

Value: 6.8

Growth: 5.2

Quality: 5.4

Yield: 5.0

Momentum: 3.0

Volatility: 6.3

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A-Score: 4.2/10

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Growth: 8.3

Quality: 5.5

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Hamilton Beach Brands

A-Score: 4.2/10

Value: 6.2

Growth: 5.6

Quality: 5.0

Yield: 6.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.98$

Current Price

15.98$

Potential

-0.00%

Expected Cash-Flows