Stock fact sheet · data as of
BAB, Inc. (BABB): fair value, margin of safety and Wheel Score
Consumer Defensive · Food Confectioners · United States · High Yield Income
Is BABB undervalued?
BABB has a margin of safety of 57%: the stock closed at 0.8000 on 16 Oct 2026 against a GLS average fair value of 1.85. 8 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between DDM (0.7357) and GLS Growth (3.41). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files BABB under High Yield Income: a dividend yield above 4%.
Nine valuation models for BABB
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 1.51 | +89% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 1.02 | +27% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 2.33 | +192% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.8100 | +1% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 3.41 | +326% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 2.59 | +224% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 3.25 | +307% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 0.7357 | -8% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 1.00 | +25% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.1303 | -84% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
BAB, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability BABB scores 5.2/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 14.7%, ROE 16.1%, ROA 11.1% - with debt at 0.10 times equity and a free-cash-flow yield of 12.0%.
The dividend yield is high at 6.25% (payout ratio 56%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Royalty 65%, Marketing Fund 26%, Licensing Fees and Other Income 9% (quarter Q2 FY2026).
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 14.7% |
|---|---|---|---|
| GLS Moat | 5.2 / 10 | ROE | 16.1% |
| Debt / equity | 0.10 | ROA | 11.1% |
| Free-cash-flow yield | 12.0% | Payout ratio | 56% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 39: No options
No options are listed on BAB, Inc. in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 39) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.
Volume runs at 0k shares a day on a market cap of $6M, with a beta of 0.22 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 57% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 8 / 15 | moat 5.2/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 6 / 20 | 0k shares/day, $6M cap, beta 0.22 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for BABB in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Food Confectioners
The 8 companies below are the closest to BAB, Inc. by market cap within the Food Confectioners industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| RMCF Rocky Mountain Chocolate Factory, Inc. | 0.9599 | - | - | 23No options | $9M |
| CHSN Chanson International Holding | 0.8328 | 118.29 | +99% | 39No options | $2M |
| SOWG Sow Good Inc. | 2.00 | 0.4196 | -377% | 13No options | $40M |
| CUSI Cuisine Solutions, Inc. | 26.47 | 1.10 | -2315% | 22No options | $465M |
| TROLB Tootsie Roll Industries, Inc. | 39.00 | 21.35 | -83% | 30No options | $2.9B |
| TR Tootsie Roll Industries, Inc. | 38.23 | 21.15 | -81% | 51Fair | $2.9B |
| HSY The Hershey Company | 168.68 | 149.08 | -13% | 71Good | $33.9B |
| MDLZ Mondelez International, Inc. | 63.03 | 46.65 | -35% | 61Fair | $80.4B |
⚖ Compare BABB with 7 of them All Consumer Defensive stocks →
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Start free See the Sunday ScanQuestions about BABB
Is BABB undervalued right now?
By the GLS models, yes: at 0.8000 the stock is 57% below the average fair value of 1.85 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of BABB and what does it mean?
BABB has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for BABB?
1.85 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does BAB, Inc. report earnings next?
No upcoming earnings date is recorded for BABB in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does BABB have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on BABB, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.