BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - NYSE:BBWI - US0708301041 - Common Stock
26.175 USD
+0.07 (+0.29%)
Overall BBWI gets a fundamental rating of 6 out of 10. We evaluated BBWI against 120 industry peers in the Specialty Retail industry. While BBWI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BBWI.
1. Profitability
1.1 Basic Checks
In the past year BBWI was profitable.
BBWI had a positive operating cash flow in the past year.
In the past 5 years BBWI has always been profitable.
Each year in the past 5 years BBWI had a positive operating cash flow.
1.2 Ratios
BBWI has a Return On Assets of 15.12%. This is amongst the best in the industry. BBWI outperforms 90.83% of its industry peers.
The Return On Invested Capital of BBWI (29.41%) is better than 95.00% of its industry peers.
BBWI had an Average Return On Invested Capital over the past 3 years of 27.00%. This is significantly above the industry average of 12.17%.
The last Return On Invested Capital (29.41%) for BBWI is above the 3 year average (27.00%), which is a sign of increasing profitability.
| 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
BBWI has a Profit Margin of 9.88%. This is amongst the best in the industry. BBWI outperforms 90.00% of its industry peers.
In the last couple of years the Profit Margin of BBWI has declined.
With an excellent Operating Margin value of 17.12%, BBWI belongs to the best of the industry, outperforming 94.17% of the companies in the same industry.
BBWI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 44.60%, BBWI is in the better half of the industry, outperforming 69.17% of the companies in the same industry.
BBWI's Gross Margin has been stable in the last couple of years.
| 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
BBWI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, BBWI has less shares outstanding
BBWI has less shares outstanding than it did 5 years ago.
BBWI has a better debt/assets ratio than last year.
2.2 Solvency
BBWI has a debt to FCF ratio of 4.97. This is a neutral value as BBWI would need 4.97 years to pay back of all of its debts.
BBWI's Debt to FCF ratio of 4.97 is fine compared to the rest of the industry. BBWI outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | N/A |
ROIC/WACC3.02
WACC9.73%
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 of 1.31. This is comparable to the rest of the industry: BBWI outperforms 50.83% of its industry peers.
A Quick Ratio of 0.56 indicates that BBWI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.56, BBWI is in line with its industry, outperforming 55.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
BBWI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.56%.
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.
The Revenue has decreased by -0.19% in the past 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
BBWI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.63% yearly.
BBWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.09% yearly.
EPS Next Y6.86%
EPS Next 2Y7.91%
EPS Next 3Y8.92%
EPS Next 5Y9.63%
Revenue Next Year2.31%
Revenue Next 2Y2.65%
Revenue Next 3Y2.78%
Revenue Next 5Y3.09%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
BBWI is valuated cheaply with a Price/Earnings ratio of 7.61.
BBWI's Price/Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 94.17% of the companies in the same industry.
When comparing the Price/Earnings ratio of BBWI to the average of the S&P500 Index (27.49), we can say BBWI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.75, the valuation of BBWI can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBWI indicates a rather cheap valuation: BBWI is cheaper than 95.00% of the companies listed in the same industry.
BBWI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.61 | ||
| Fwd PE | 6.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBWI is valued cheaply inside the industry as 80.83% of the companies are valued more expensively.
BBWI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBWI is cheaper than 94.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.89 | ||
| EV/EBITDA | 5.82 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BBWI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.11
PEG (5Y)0.97
EPS Next 2Y7.91%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
BBWI's Dividend Yield is rather good when compared to the industry average which is at 5.63. BBWI pays more dividend than 87.50% of the companies in the same industry.
BBWI's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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
BBWI pays out 23.63% of its income as dividend. This is a sustainable payout ratio.
DP23.63%
EPS Next 2Y7.91%
EPS Next 3Y8.92%
NYSE:BBWI (10/15/2025, 9:54:06 AM)
26.175
+0.07 (+0.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.96%
Inst Owner Change0.13%
Ins Owners0.31%
Ins Owner Change6.61%
Market Cap5.40B
Analysts80.95
Price Target40.03 (52.93%)
Short Float %10.05%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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)2.61%
PT rev (3m)-4.54%
EPS NQ rev (1m)-3.53%
EPS NQ rev (3m)-14.53%
EPS NY rev (1m)0.89%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.61 | ||
| Fwd PE | 6.75 | ||
| P/S | 0.73 | ||
| P/FCF | 6.89 | ||
| P/OCF | 5.39 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.82 |
EPS(TTM)3.44
EY13.14%
EPS(NY)3.88
Fwd EY14.81%
FCF(TTM)3.8
FCFY14.51%
OCF(TTM)4.85
OCFY18.55%
SpS35.74
BVpS-7.5
TBVpS-11.35
PEG (NY)1.11
PEG (5Y)0.97
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
WACC9.73%
ROIC/WACC3.02
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 Y6.86%
EPS Next 2Y7.91%
EPS Next 3Y8.92%
EPS Next 5Y9.63%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%1.51%
Revenue Next Year2.31%
Revenue Next 2Y2.65%
Revenue Next 3Y2.78%
Revenue Next 5Y3.09%
EBIT growth 1Y-1.94%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year17.21%
EBIT Next 3Y8.48%
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%