C

Hamilton Beach Brands Holding C — Earnings Quality Grade C

HBB · Consumer Cyclical

Some red flags

Revenue
$607M
2025
Net Income
$26M
2025
Gross Margin
25.7%
Free Cash Flow
$11M
01

Screening Summary

13
Passed
4
Watch
0
Failed
-2.48
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 66 days, change +1 days YoY

A2AR vs Revenue Growth

AR growth -5.6% vs revenue growth -7.3%

A3Revenue vs CFFO

Revenue -7.3%, CFFO -78.9%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 7.1% vs COGS -7.0%. Normal

B2CapEx vs Revenue

CapEx growth -13.0% vs revenue -7.3%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 76.4%, exceeds 70%

B4Gross Margin

Gross margin 25.7%, change -0.3pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = 0.52. Below 1.0

C2Free Cash Flow

FCF $0.0B, FCF/NI = 0.42

C3Accruals Ratio

Accruals ratio = 3.2%. Low accruals

!
C4Cash vs Debt

Cash $0.0B covers 51% of debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 5% of equity. Manageable

D2Leverage

Debt/EBITDA = 2.2x. Healthy

!
D3Soft Asset Growth

Other assets grew 39.0% vs revenue -7.3%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -0% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.48 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.48
-4.0 Clean-2.22 Grey-1.78 Danger0
1.019
DSRI
AR growing faster than revenue?
1.01
GMI
Gross margin declining?
0.715
AQI
Asset quality deteriorating?
0.927
SGI
Revenue growth rate
0.767
DEPI
Depreciation slowing?
1.015
SGAI
SG&A ratio changing?
0.0318
TATA
Accruals level
0.886
LVGI
Leverage increasing?
05

Altman Z-Score

5.68
Safe Zone
0 Distress1.102.605.0+ Safe
0.4565
Liquidity
0.3619
Cumulative profit
0.0914
Operating efficiency
0.8513
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25