BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - NYSE:BBWI - US0708301041 - Common Stock
26.56 USD
+0.66 (+2.55%)
26.61 USD
+0.05 (+0.19%)
BBWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 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.
In the past 5 years BBWI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BBWI (15.12%) is better than 90.98% of its industry peers.
BBWI has a better Return On Invested Capital (29.41%) than 95.08% 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 12.02%.
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
The Profit Margin of BBWI (9.88%) is better than 90.16% of its industry peers.
BBWI's Profit Margin has declined in the last couple of years.
BBWI has a better Operating Margin (17.12%) than 94.26% 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 68.85% 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
BBWI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for BBWI has been reduced compared to a year ago.
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 has a Debt to FCF ratio of 4.97. This is in the better half of the industry: BBWI outperforms 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | N/A |
ROIC/WACC2.98
WACC9.86%
2.3 Liquidity
BBWI has a Current Ratio of 1.31. 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 (1.31) which is comparable to the rest of the industry.
A Quick Ratio of 0.56 indicates that BBWI may have some problems paying its short term obligations.
BBWI has a Quick ratio (0.56) which is in line with its industry peers.
| 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.
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
The Earnings Per Share is expected to grow by 9.63% 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 3.09% on average per year.
EPS Next Y5.92%
EPS Next 2Y7.37%
EPS Next 3Y8.66%
EPS Next 5Y9.63%
Revenue Next Year2.24%
Revenue Next 2Y2.59%
Revenue Next 3Y2.61%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.72 indicates a rather cheap valuation of BBWI.
95.08% of the companies in the same industry are more expensive than BBWI, based on the Price/Earnings ratio.
BBWI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 6.92, which indicates a rather cheap valuation of BBWI.
BBWI's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 95.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.72 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBWI is valued cheaper than 83.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaper than 94.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.99 | ||
| EV/EBITDA | 5.88 |
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)1.3
PEG (5Y)0.98
EPS Next 2Y7.37%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, 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 5.22. BBWI pays more dividend than 90.16% of the companies in the same industry.
BBWI's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of BBWI decreases each year by -7.77%.
BBWI has been paying a dividend for at least 10 years, so it has 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 2Y7.37%
EPS Next 3Y8.66%
26.56
+0.66 (+2.55%)
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 Change6.61%
Market Cap5.48B
Analysts80.95
Price Target40.03 (50.72%)
Short Float %7.63%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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)-0.58%
PT rev (3m)-4.54%
EPS NQ rev (1m)-10.99%
EPS NQ rev (3m)-12.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.72 | ||
| Fwd PE | 6.92 | ||
| P/S | 0.74 | ||
| P/FCF | 6.99 | ||
| P/OCF | 5.47 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.88 |
EPS(TTM)3.44
EY12.95%
EPS(NY)3.84
Fwd EY14.45%
FCF(TTM)3.8
FCFY14.3%
OCF(TTM)4.85
OCFY18.28%
SpS35.74
BVpS-7.5
TBVpS-11.35
PEG (NY)1.3
PEG (5Y)0.98
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
WACC9.86%
ROIC/WACC2.98
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 Year2.24%
Revenue Next 2Y2.59%
Revenue Next 3Y2.61%
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%