BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
NYSE:BBWI - New York Stock Exchange, Inc. - US0708301041 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BBWI. BBWI was compared to 120 industry peers in the Specialty Retail industry. BBWI scores excellent on profitability, but there are some minor concerns on its financial health. BBWI may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, BBWI could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year BBWI was profitable.
In the past year BBWI had a positive cash flow from operations.
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 16.72%. This is amongst the best in the industry. BBWI outperforms 94.17% of its industry peers.
BBWI's Return On Invested Capital of 29.38% is amongst the best of the industry. BBWI outperforms 95.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBWI is significantly above the industry average of 13.34%.
The 3 year average ROIC (27.00%) for BBWI is below the current ROIC(29.38%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 11.11%. This is amongst the best in the industry. BBWI outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of BBWI has declined.
BBWI's Operating Margin of 17.53% is amongst the best of the industry. BBWI outperforms 94.17% of its industry peers.
In the last couple of years the Operating Margin of BBWI has declined.
BBWI has a better Gross Margin (44.55%) than 69.17% of its industry peers.
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
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.
Compared to 5 years ago, BBWI has less shares outstanding
The debt/assets ratio for BBWI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.58 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
BBWI has a better Altman-Z score (2.58) than 62.50% of its industry peers.
BBWI has a debt to FCF ratio of 4.98. This is a neutral value as BBWI would need 4.98 years to pay back of all of its debts.
BBWI's Debt to FCF ratio of 4.98 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 | 4.98 | ||
| Altman-Z | 2.58 |
ROIC/WACC2.96
WACC9.91%
2.3 Liquidity
A Current Ratio of 1.41 indicates that BBWI should not have too much problems paying its short term obligations.
BBWI's Current ratio of 1.41 is in line compared to the rest of the industry. BBWI outperforms 51.67% of its industry peers.
A Quick Ratio of 0.73 indicates that BBWI may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.73, BBWI is doing good in the industry, outperforming 65.00% 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%.
The Earnings Per Share has been growing slightly by 7.87% on average over the past years.
BBWI shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
Measured over the past years, BBWI shows a small growth in Revenue. The Revenue has been growing by 6.22% on average per year.
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
Based on estimates for the next years, BBWI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.76% on average per year.
BBWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y7.75%
EPS Next 2Y8.17%
EPS Next 3Y7.44%
EPS Next 5Y9.76%
Revenue Next Year2.45%
Revenue Next 2Y2.63%
Revenue Next 3Y2.55%
Revenue Next 5Y3.59%
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
The Price/Earnings ratio is 7.89, which indicates a rather cheap valuation of BBWI.
Based on the Price/Earnings ratio, BBWI is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.46, BBWI is valued rather cheaply.
BBWI is valuated cheaply with a Price/Forward Earnings ratio of 6.97.
BBWI's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 90.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBWI indicates a somewhat cheap valuation: BBWI is cheaper than 76.67% of the companies listed in the same industry.
86.67% 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 | 7.4 | ||
| EV/EBITDA | 5.72 |
4.3 Compensation for Growth
BBWI's 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)1.02
PEG (5Y)1
EPS Next 2Y8.17%
EPS Next 3Y7.44%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 2.84%.
Compared to an average industry Dividend Yield of 5.23, BBWI pays a better dividend. On top of this BBWI pays more dividend than 85.83% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, BBWI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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
21.45% of the earnings are spent on dividend by BBWI. This is a low number and sustainable payout ratio.
DP21.45%
EPS Next 2Y8.17%
EPS Next 3Y7.44%
27.15
+0.42 (+1.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.29%
Inst Owner Change-0.36%
Ins Owners0.25%
Ins Owner Change21.22%
Market Cap5.78B
Analysts80.87
Price Target41.93 (54.44%)
Short Float %2.6%
Short Ratio0.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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)-1.86%
PT rev (3m)-4.83%
EPS NQ rev (1m)13.19%
EPS NQ rev (3m)7.34%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-2.49%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 6.97 | ||
| P/S | 0.79 | ||
| P/FCF | 7.4 | ||
| P/OCF | 5.79 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.72 |
EPS(TTM)3.44
EY12.67%
EPS(NY)3.9
Fwd EY14.35%
FCF(TTM)3.67
FCFY13.5%
OCF(TTM)4.69
OCFY17.26%
SpS34.49
BVpS-6.81
TBVpS-10.53
PEG (NY)1.02
PEG (5Y)1
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 | 2.58 |
F-Score7
WACC9.91%
ROIC/WACC2.96
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 Y7.75%
EPS Next 2Y8.17%
EPS Next 3Y7.44%
EPS Next 5Y9.76%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%2.89%
Revenue Next Year2.45%
Revenue Next 2Y2.63%
Revenue Next 3Y2.55%
Revenue Next 5Y3.59%
EBIT growth 1Y-0.31%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year22.98%
EBIT Next 3Y10.17%
EBIT Next 5Y8.57%
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%