BATH & BODY WORKS INC (BBWI) Fundamental Analysis & Valuation
NYSE:BBWI • US0708301041
Current stock price
18.57 USD
-0.76 (-3.93%)
At close:
18.58 USD
+0.01 (+0.05%)
After Hours:
This BBWI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. BBWI Profitability Analysis
1.1 Basic Checks
- BBWI had positive earnings in the past year.
- In the past year BBWI had a positive cash flow from operations.
- BBWI had positive earnings in each of the past 5 years.
- BBWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BBWI's Return On Assets of 12.80% is amongst the best of the industry. BBWI outperforms 90.32% of its industry peers.
- BBWI's Return On Invested Capital of 24.80% is amongst the best of the industry. BBWI outperforms 95.97% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BBWI is significantly above the industry average of 13.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.8% | ||
| ROE | N/A | ||
| ROIC | 24.8% |
ROA(3y)15.08%
ROA(5y)16.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.9%
ROIC(5y)26.41%
1.3 Margins
- BBWI's Profit Margin of 8.90% is amongst the best of the industry. BBWI outperforms 88.71% of its industry peers.
- In the last couple of years the Profit Margin of BBWI has declined.
- BBWI's Operating Margin of 15.65% is amongst the best of the industry. BBWI outperforms 94.35% of its industry peers.
- BBWI's Operating Margin has declined in the last couple of years.
- BBWI's Gross Margin of 43.73% is fine compared to the rest of the industry. BBWI outperforms 67.74% of its industry peers.
- In the last couple of years the Gross Margin of BBWI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.65% | ||
| PM (TTM) | 8.9% | ||
| GM | 43.73% |
OM growth 3Y-4.5%
OM growth 5Y-8.99%
PM growth 3Y-5.6%
PM growth 5Y-7.46%
GM growth 3Y0.53%
GM growth 5Y-1.89%
2. BBWI Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BBWI is creating value.
- BBWI has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for BBWI has been reduced compared to 5 years ago.
- BBWI has a better debt/assets ratio than last year.
2.2 Solvency
- BBWI has an Altman-Z score of 2.24. This is not the best score and indicates that BBWI is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of BBWI (2.24) is comparable to the rest of the industry.
- The Debt to FCF ratio of BBWI is 4.50, which is a neutral value as it means it would take BBWI, 4.50 years of fcf income to pay off all of its debts.
- BBWI's Debt to FCF ratio of 4.50 is fine compared to the rest of the industry. BBWI outperforms 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.24 |
ROIC/WACC3.54
WACC7.01%
2.3 Liquidity
- BBWI has a Current Ratio of 1.27. This is a normal value and indicates that BBWI is financially healthy and should not expect problems in meeting its short term obligations.
- BBWI has a Current ratio (1.27) which is comparable to the rest of the industry.
- A Quick Ratio of 0.83 indicates that BBWI may have some problems paying its short term obligations.
- BBWI's Quick ratio of 0.83 is fine compared to the rest of the industry. BBWI outperforms 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.83 |
3. BBWI Growth Analysis
3.1 Past
- The earnings per share for BBWI have decreased by -2.10% in the last year.
- Measured over the past years, BBWI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.95% on average per year.
- Looking at the last year, BBWI shows a decrease in Revenue. The Revenue has decreased by -0.22% in the last year.
- BBWI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.53% yearly.
EPS 1Y (TTM)-2.1%
EPS 3Y-1.58%
EPS 5Y-0.95%
EPS Q2Q%-1.91%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y-1.2%
Revenue growth 5Y2.53%
Sales Q2Q%-2.3%
3.2 Future
- The Earnings Per Share is expected to grow by 8.92% on average over the next years. This is quite good.
- Based on estimates for the next years, BBWI will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-19.77%
EPS Next 2Y-6.45%
EPS Next 3Y6.68%
EPS Next 5Y8.92%
Revenue Next Year-1.05%
Revenue Next 2Y0.55%
Revenue Next 3Y1.64%
Revenue Next 5Y2.25%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. BBWI Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 5.70 indicates a rather cheap valuation of BBWI.
- BBWI's Price/Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 95.16% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.17. BBWI is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 7.10, which indicates a rather cheap valuation of BBWI.
- 93.55% of the companies in the same industry are more expensive than BBWI, based on the Price/Forward Earnings ratio.
- BBWI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.7 | ||
| Fwd PE | 7.1 |
4.2 Price Multiples
- BBWI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBWI is cheaper than 87.90% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BBWI is valued cheaper than 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.32 | ||
| EV/EBITDA | 4.78 |
4.3 Compensation for Growth
- BBWI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.45%
EPS Next 3Y6.68%
5. BBWI Dividend Analysis
5.1 Amount
- BBWI has a Yearly Dividend Yield of 4.76%, which is a nice return.
- BBWI's Dividend Yield is rather good when compared to the industry average which is at 3.06. BBWI pays more dividend than 89.52% of the companies in the same industry.
- BBWI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
- The dividend of BBWI is nicely growing with an annual growth rate of 21.78%!
- BBWI has paid a dividend for at least 10 years, which is a reliable track record.
- As BBWI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)21.78%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
- 25.73% of the earnings are spent on dividend by BBWI. This is a low number and sustainable payout ratio.
- BBWI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.73%
EPS Next 2Y-6.45%
EPS Next 3Y6.68%
BBWI Fundamentals: All Metrics, Ratios and Statistics
18.57
-0.76 (-3.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03 2026-03-03/bmo
Earnings (Next)05-19 2026-05-19
Inst Owners99.96%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change16.81%
Market Cap3.73B
Revenue(TTM)7.29B
Net Income(TTM)649.00M
Analysts71.82
Price Target28.57 (53.85%)
Short Float %7.66%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
Yearly Dividend0.8
Dividend Growth(5Y)21.78%
DP25.73%
Div Incr Years0
Div Non Decr Years5
Ex-Date02-20 2026-02-20 (0.2)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.12%
Min EPS beat(2)-13.05%
Max EPS beat(2)13.28%
EPS beat(4)2
Avg EPS beat(4)-0.32%
Min EPS beat(4)-13.05%
Max EPS beat(4)13.28%
EPS beat(8)6
Avg EPS beat(8)1.78%
EPS beat(12)10
Avg EPS beat(12)8.34%
EPS beat(16)14
Avg EPS beat(16)15.3%
Revenue beat(2)1
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)1.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)1.91%
Revenue beat(8)1
Avg Revenue beat(8)-1.47%
Revenue beat(12)2
Avg Revenue beat(12)-1.42%
Revenue beat(16)4
Avg Revenue beat(16)-1.1%
PT rev (1m)11.25%
PT rev (3m)26.54%
EPS NQ rev (1m)4%
EPS NQ rev (3m)-3.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.86%
Revenue NQ rev (1m)1.98%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.7 | ||
| Fwd PE | 7.1 | ||
| P/S | 0.51 | ||
| P/FCF | 4.32 | ||
| P/OCF | 3.39 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.78 |
EPS(TTM)3.26
EY17.56%
EPS(NY)2.62
Fwd EY14.09%
FCF(TTM)4.3
FCFY23.16%
OCF(TTM)5.48
OCFY29.5%
SpS36.25
BVpS-6.37
TBVpS-10.31
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.8% | ||
| ROE | N/A | ||
| ROCE | 32.81% | ||
| ROIC | 24.8% | ||
| ROICexc | 34.16% | ||
| ROICexgc | 49.81% | ||
| OM | 15.65% | ||
| PM (TTM) | 8.9% | ||
| GM | 43.73% | ||
| FCFM | 11.86% |
ROA(3y)15.08%
ROA(5y)16.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.9%
ROIC(5y)26.41%
ROICexc(3y)32.77%
ROICexc(5y)37.9%
ROICexgc(3y)45.59%
ROICexgc(5y)52.78%
ROCE(3y)32.93%
ROCE(5y)34.93%
ROICexgc growth 3Y0.46%
ROICexgc growth 5Y9.21%
ROICexc growth 3Y-1.38%
ROICexc growth 5Y6.29%
OM growth 3Y-4.5%
OM growth 5Y-8.99%
PM growth 3Y-5.6%
PM growth 5Y-7.46%
GM growth 3Y0.53%
GM growth 5Y-1.89%
F-Score5
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 93.31% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 4.34 | ||
| Cash Conversion | 79% | ||
| Profit Quality | 133.28% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.24 |
F-Score5
WACC7.01%
ROIC/WACC3.54
Cap/Depr(3y)94.74%
Cap/Depr(5y)101.41%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.62%
Profit Quality(3y)96.9%
Profit Quality(5y)96.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.1%
EPS 3Y-1.58%
EPS 5Y-0.95%
EPS Q2Q%-1.91%
EPS Next Y-19.77%
EPS Next 2Y-6.45%
EPS Next 3Y6.68%
EPS Next 5Y8.92%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y-1.2%
Revenue growth 5Y2.53%
Sales Q2Q%-2.3%
Revenue Next Year-1.05%
Revenue Next 2Y0.55%
Revenue Next 3Y1.64%
Revenue Next 5Y2.25%
EBIT growth 1Y-9.87%
EBIT growth 3Y-5.64%
EBIT growth 5Y-6.69%
EBIT Next Year15.44%
EBIT Next 3Y11.17%
EBIT Next 5Y8.99%
FCF growth 1Y31.06%
FCF growth 3Y1.96%
FCF growth 5Y-13.74%
OCF growth 1Y24.38%
OCF growth 3Y-1.24%
OCF growth 5Y-11.58%
BATH & BODY WORKS INC / BBWI Fundamental Analysis FAQ
What is the ChartMill fundamental rating of BATH & BODY WORKS INC (BBWI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BBWI.
Can you provide the valuation status for BATH & BODY WORKS INC?
ChartMill assigns a valuation rating of 8 / 10 to BATH & BODY WORKS INC (BBWI). This can be considered as Undervalued.
Can you provide the profitability details for BATH & BODY WORKS INC?
BATH & BODY WORKS INC (BBWI) has a profitability rating of 7 / 10.
Can you provide the financial health for BBWI stock?
The financial health rating of BATH & BODY WORKS INC (BBWI) is 5 / 10.
How sustainable is the dividend of BATH & BODY WORKS INC (BBWI) stock?
The dividend rating of BATH & BODY WORKS INC (BBWI) is 8 / 10 and the dividend payout ratio is 25.73%.