BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
NYSE:BBWI - US0708301041 - Common Stock
29.21 USD
-0.15 (-0.51%)
29.7733 USD
+0.56 (+1.93%)
We assign a fundamental rating of 6 out of 10 to BBWI. BBWI was compared to 123 industry peers in the Specialty Retail industry. While BBWI has a great profitability rating, there are some minor concerns on its financial health. BBWI is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year BBWI was profitable.
BBWI had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 15.12%, BBWI belongs to the best of the industry, outperforming 91.06% of the companies in the same industry.
BBWI has a better Return On Invested Capital (29.41%) than 95.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBWI is significantly above the industry average of 12.10%.
The 3 year average ROIC (27.00%) for BBWI is below the current ROIC(29.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.12% | ||
| ROE | N/A | ||
| ROIC | 29.41% |
ROA(3y)15.67%
ROA(5y)15.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)27%
ROIC(5y)26.2%
1.3 Margins
With an excellent Profit Margin value of 9.88%, BBWI belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
BBWI's Profit Margin has declined in the last couple of years.
BBWI has a Operating Margin of 17.12%. This is amongst the best in the industry. BBWI outperforms 94.31% of its industry peers.
In the last couple of years the Operating Margin of BBWI has declined.
Looking at the Gross Margin, with a value of 44.60%, BBWI is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
In the last couple of years the Gross Margin of BBWI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.12% | ||
| PM (TTM) | 9.88% | ||
| GM | 44.6% |
OM growth 3Y-12.07%
OM growth 5Y-2.08%
PM growth 3Y-13.56%
PM growth 5YN/A
GM growth 3Y-3.28%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BBWI is creating value.
Compared to 1 year ago, BBWI has less shares outstanding
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
The Debt to FCF ratio of BBWI is 4.97, which is a neutral value as it means it would take BBWI, 4.97 years of fcf income to pay off all of its debts.
BBWI has a Debt to FCF ratio of 4.97. This is in the better half of the industry: BBWI outperforms 65.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | N/A |
ROIC/WACC3.05
WACC9.64%
2.3 Liquidity
A Current Ratio of 1.31 indicates that BBWI should not have too much problems paying its short term obligations.
BBWI has a Current ratio (1.31) which is in line with its industry peers.
BBWI has a Quick Ratio of 1.31. This is a bad value and indicates that BBWI is not financially healthy enough and could expect problems in meeting its short term obligations.
BBWI has a Quick ratio (0.56) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.56% over the past year.
Measured over the past 5 years, BBWI shows a small growth in Earnings Per Share. The EPS has been growing by 7.87% on average per year.
Looking at the last year, BBWI shows a decrease in Revenue. The Revenue has decreased by -0.19% in the last year.
The Revenue has been growing slightly by 6.22% on average over the past years.
EPS 1Y (TTM)4.56%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%1.51%
3.2 Future
Based on estimates for the next years, BBWI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.63% on average per year.
The Revenue is expected to grow by 3.09% on average over the next years.
EPS Next Y5.92%
EPS Next 2Y7.37%
EPS Next 3Y8.66%
EPS Next 5Y9.63%
Revenue Next Year2.36%
Revenue Next 2Y2.6%
Revenue Next 3Y2.82%
Revenue Next 5Y3.09%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.49, which indicates a very decent valuation of BBWI.
Based on the Price/Earnings ratio, BBWI is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BBWI to the average of the S&P500 Index (27.13), we can say BBWI is valued rather cheaply.
The Price/Forward Earnings ratio is 7.61, which indicates a rather cheap valuation of BBWI.
Based on the Price/Forward Earnings ratio, BBWI is valued cheaper than 93.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BBWI to the average of the S&P500 Index (22.76), we can say BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBWI is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaper than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.89 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BBWI may justify a higher PE ratio.
PEG (NY)1.43
PEG (5Y)1.08
EPS Next 2Y7.37%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.74%, BBWI has a reasonable but not impressive dividend return.
BBWI's Dividend Yield is rather good when compared to the industry average which is at 5.41. BBWI pays more dividend than 86.99% of the companies in the same industry.
BBWI's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
The dividend of BBWI decreases each year by -7.77%.
BBWI has paid a dividend for at least 10 years, which is a reliable track record.
BBWI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.77%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
23.63% of the earnings are spent on dividend by BBWI. This is a low number and sustainable payout ratio.
DP23.63%
EPS Next 2Y7.37%
EPS Next 3Y8.66%
29.21
-0.15 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.81%
Inst Owner Change-3.84%
Ins Owners0.31%
Ins Owner Change22.13%
Market Cap6.18B
Analysts80.95
Price Target39.33 (34.65%)
Short Float %4.82%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend0.8
Dividend Growth(5Y)-7.77%
DP23.63%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.76%
Min EPS beat(2)-3.37%
Max EPS beat(2)1.86%
EPS beat(4)3
Avg EPS beat(4)0.3%
Min EPS beat(4)-3.37%
Max EPS beat(4)2.51%
EPS beat(8)7
Avg EPS beat(8)7%
EPS beat(12)11
Avg EPS beat(12)17.56%
EPS beat(16)14
Avg EPS beat(16)18.31%
Revenue beat(2)0
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-2.21%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.21%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)4
Avg Revenue beat(16)-0.82%
PT rev (1m)-4.16%
PT rev (3m)-11.39%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-13.63%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-1.69%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 7.61 | ||
| P/S | 0.84 | ||
| P/FCF | 7.89 | ||
| P/OCF | 6.17 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.34 |
EPS(TTM)3.44
EY11.78%
EPS(NY)3.84
Fwd EY13.14%
FCF(TTM)3.7
FCFY12.67%
OCF(TTM)4.73
OCFY16.19%
SpS34.83
BVpS-7.31
TBVpS-11.06
PEG (NY)1.43
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.12% | ||
| ROE | N/A | ||
| ROCE | 35.94% | ||
| ROIC | 29.41% | ||
| ROICexc | 32.81% | ||
| ROICexgc | 43.86% | ||
| OM | 17.12% | ||
| PM (TTM) | 9.88% | ||
| GM | 44.6% | ||
| FCFM | 10.62% |
ROA(3y)15.67%
ROA(5y)15.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)27%
ROIC(5y)26.2%
ROICexc(3y)35.99%
ROICexc(5y)39.04%
ROICexgc(3y)49.09%
ROICexgc(5y)53.22%
ROCE(3y)33%
ROCE(5y)32.02%
ROICexcg growth 3Y-17.12%
ROICexcg growth 5Y23.9%
ROICexc growth 3Y-16.34%
ROICexc growth 5Y20.74%
OM growth 3Y-12.07%
OM growth 5Y-2.08%
PM growth 3Y-13.56%
PM growth 5YN/A
GM growth 3Y-3.28%
GM growth 5Y0.04%
F-Score7
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 81.34% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.42% | ||
| Profit Quality | 107.56% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | N/A |
F-Score7
WACC9.64%
ROIC/WACC3.05
Cap/Depr(3y)113.11%
Cap/Depr(5y)91.5%
Cap/Sales(3y)3.81%
Cap/Sales(5y)3.68%
Profit Quality(3y)86.47%
Profit Quality(5y)113.13%
High Growth Momentum
Growth
EPS 1Y (TTM)4.56%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%0%
EPS Next Y5.92%
EPS Next 2Y7.37%
EPS Next 3Y8.66%
EPS Next 5Y9.63%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%1.51%
Revenue Next Year2.36%
Revenue Next 2Y2.6%
Revenue Next 3Y2.82%
Revenue Next 5Y3.09%
EBIT growth 1Y-1.94%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year21.11%
EBIT Next 3Y8.54%
EBIT Next 5Y7.01%
FCF growth 1Y-1.51%
FCF growth 3Y-18.56%
FCF growth 5Y-3.24%
OCF growth 1Y-12.19%
OCF growth 3Y-15.95%
OCF growth 5Y-6.44%