BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
NYSE:BBWI - New York Stock Exchange, Inc. - US0708301041 - Common Stock - Currency: USD
Taking everything into account, BBWI scores 6 out of 10 in our fundamental rating. BBWI was compared to 122 industry peers in the Specialty Retail industry. BBWI has an excellent profitability rating, but there are some minor concerns on its financial health. BBWI may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make BBWI suitable for value investing!
1. Profitability
1.1 Basic Checks
BBWI had positive earnings in the past year.
In the past year BBWI had a positive cash flow from operations.
Each year in the past 5 years BBWI has been profitable.
BBWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BBWI has a better Return On Assets (16.72%) than 94.26% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.38%, BBWI belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
BBWI had an Average Return On Invested Capital over the past 3 years of 27.00%. This is significantly above the industry average of 12.95%.
The last Return On Invested Capital (29.38%) for BBWI is above the 3 year average (27.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | N/A | ||
| ROIC | 29.38% |
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's Profit Margin of 11.11% is amongst the best of the industry. BBWI outperforms 91.80% of its industry peers.
BBWI's Profit Margin has declined in the last couple of years.
BBWI has a better Operating Margin (17.53%) 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 44.55%, BBWI is in the better half of the industry, outperforming 68.03% 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 | 17.53% | ||
| PM (TTM) | 11.11% | ||
| GM | 44.55% |
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.
BBWI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BBWI has been reduced compared to a year ago.
2.2 Solvency
BBWI has an Altman-Z score of 2.62. 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.
BBWI's Altman-Z score of 2.62 is fine compared to the rest of the industry. BBWI outperforms 61.48% of its industry peers.
The Debt to FCF ratio of BBWI is 4.98, which is a neutral value as it means it would take BBWI, 4.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.98, BBWI is in the better half of the industry, outperforming 66.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 2.62 |
ROIC/WACC3.02
WACC9.73%
2.3 Liquidity
BBWI has a Current Ratio of 1.41. This is a normal value and indicates that BBWI is financially healthy and should not expect problems in meeting its short term obligations.
BBWI's Current ratio of 1.41 is in line compared to the rest of the industry. BBWI outperforms 54.92% of its industry peers.
BBWI has a Quick Ratio of 1.41. This is a bad value and indicates that BBWI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.73, BBWI is doing good in the industry, outperforming 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
BBWI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.61%.
BBWI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.87% yearly.
Looking at the last year, BBWI shows a decrease in Revenue. The Revenue has decreased by -0.94% in the last year.
The Revenue has been growing slightly by 6.22% on average over the past years.
EPS 1Y (TTM)3.61%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%28.95%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%2.89%
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 Y6.62%
EPS Next 2Y7.77%
EPS Next 3Y7.76%
EPS Next 5Y9.63%
Revenue Next Year2.39%
Revenue Next 2Y2.57%
Revenue Next 3Y2.43%
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
The Price/Earnings ratio is 8.38, which indicates a very decent valuation of BBWI.
BBWI's Price/Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 88.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of BBWI to the average of the S&P500 Index (26.65), we can say BBWI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.46, 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 89.34% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBWI is valued a bit cheaper than 78.69% of the companies in the same industry.
88.52% of the companies in the same industry are more expensive than BBWI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.87 | ||
| EV/EBITDA | 6 |
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)1.27
PEG (5Y)1.07
EPS Next 2Y7.77%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.89%, BBWI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.35, BBWI pays a better dividend. On top of this BBWI pays more dividend than 87.70% of the companies listed in the same industry.
BBWI's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
21.45% of the earnings are spent on dividend by BBWI. This is a low number and sustainable payout ratio.
DP21.45%
EPS Next 2Y7.77%
EPS Next 3Y7.76%
NYSE:BBWI (6/24/2025, 1:21:47 PM)
28.84
+0.07 (+0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.11%
Inst Owner Change-0.36%
Ins Owners0.28%
Ins Owner Change22.38%
Market Cap6.14B
Analysts80.87
Price Target41.93 (45.39%)
Short Float %2.52%
Short Ratio1.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend0.8
Dividend Growth(5Y)-7.77%
DP21.45%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.02%
Min EPS beat(2)0.18%
Max EPS beat(2)1.86%
EPS beat(4)4
Avg EPS beat(4)1.53%
Min EPS beat(4)0.18%
Max EPS beat(4)2.51%
EPS beat(8)8
Avg EPS beat(8)9.66%
EPS beat(12)12
Avg EPS beat(12)19.06%
EPS beat(16)15
Avg EPS beat(16)22.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-1.93%
Max Revenue beat(2)-1.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-1.32%
Revenue beat(12)3
Avg Revenue beat(12)-1.01%
Revenue beat(16)5
Avg Revenue beat(16)-0.67%
PT rev (1m)-5.51%
PT rev (3m)-11.1%
EPS NQ rev (1m)-13.54%
EPS NQ rev (3m)-15.29%
EPS NY rev (1m)-1.04%
EPS NY rev (3m)-3.5%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.46 | ||
| P/S | 0.84 | ||
| P/FCF | 7.87 | ||
| P/OCF | 6.16 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6 |
EPS(TTM)3.44
EY11.93%
EPS(NY)3.87
Fwd EY13.41%
FCF(TTM)3.67
FCFY12.71%
OCF(TTM)4.69
OCFY16.25%
SpS34.49
BVpS-6.81
TBVpS-10.53
PEG (NY)1.27
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | N/A | ||
| ROCE | 35.91% | ||
| ROIC | 29.38% | ||
| ROICexc | 35.71% | ||
| ROICexgc | 48.83% | ||
| OM | 17.53% | ||
| PM (TTM) | 11.11% | ||
| GM | 44.55% | ||
| FCFM | 10.63% |
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 Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.98 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 78.91% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.85% | ||
| Profit Quality | 95.71% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.62 |
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)3.61%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%28.95%
EPS Next Y6.62%
EPS Next 2Y7.77%
EPS Next 3Y7.76%
EPS Next 5Y9.63%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%2.89%
Revenue Next Year2.39%
Revenue Next 2Y2.57%
Revenue Next 3Y2.43%
Revenue Next 5Y3.09%
EBIT growth 1Y-0.31%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year22.98%
EBIT Next 3Y9.24%
EBIT Next 5Y7.01%
FCF growth 1Y-1.01%
FCF growth 3Y-18.56%
FCF growth 5Y-3.24%
OCF growth 1Y-11.05%
OCF growth 3Y-15.95%
OCF growth 5Y-6.44%