BATH & BODY WORKS INC (BBWI) Fundamental Analysis & Valuation
NYSE:BBWI • US0708301041
Current stock price
18.35 USD
+0.25 (+1.38%)
At close:
18.35 USD
0 (0%)
After Hours:
This BBWI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. BBWI Profitability Analysis
1.1 Basic Checks
- BBWI had positive earnings in the past year.
- 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
- The Return On Assets of BBWI (12.80%) is better than 90.98% of its industry peers.
- BBWI has a better Return On Invested Capital (24.80%) than 95.08% of its industry peers.
- BBWI had an Average Return On Invested Capital over the past 3 years of 24.90%. This is significantly above the industry average of 13.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.8% | ||
| ROE | N/A | ||
| ROIC | 24.8% |
ROA(3y)15.08%
ROA(5y)16.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.9%
ROIC(5y)26.41%
1.3 Margins
- The Profit Margin of BBWI (8.90%) is better than 88.52% of its industry peers.
- BBWI's Profit Margin has declined in the last couple of years.
- BBWI has a Operating Margin of 15.65%. This is amongst the best in the industry. BBWI outperforms 94.26% of its industry peers.
- BBWI's Operating Margin has declined in the last couple of years.
- BBWI has a better Gross Margin (43.73%) than 68.85% of its industry peers.
- In the last couple of years the Gross Margin of BBWI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.65% | ||
| PM (TTM) | 8.9% | ||
| GM | 43.73% |
OM growth 3Y-4.5%
OM growth 5Y-8.99%
PM growth 3Y-5.6%
PM growth 5Y-7.46%
GM growth 3Y0.53%
GM growth 5Y-1.89%
2. BBWI Health Analysis
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.
- The number of shares outstanding for BBWI has been reduced compared to 1 year ago.
- The number of shares outstanding for BBWI has been reduced compared to 5 years ago.
- Compared to 1 year ago, BBWI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.23 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- BBWI's Altman-Z score of 2.23 is in line compared to the rest of the industry. BBWI outperforms 50.00% of its industry peers.
- The Debt to FCF ratio of BBWI is 4.50, which is a neutral value as it means it would take BBWI, 4.50 years of fcf income to pay off all of its debts.
- BBWI has a Debt to FCF ratio of 4.50. This is in the better half of the industry: BBWI outperforms 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.23 |
ROIC/WACC3.55
WACC6.98%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that BBWI should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.27, BBWI perfoms like the industry average, outperforming 50.82% of the companies in the same industry.
- BBWI has a Quick Ratio of 1.27. 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's Quick ratio of 0.83 is fine compared to the rest of the industry. BBWI outperforms 64.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.83 |
3. BBWI Growth Analysis
3.1 Past
- The earnings per share for BBWI have decreased by -2.10% in the last year.
- BBWI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.95% yearly.
- BBWI shows a decrease in Revenue. In the last year, the revenue decreased by -0.22%.
- BBWI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.53% yearly.
EPS 1Y (TTM)-2.1%
EPS 3Y-1.58%
EPS 5Y-0.95%
EPS Q2Q%-1.91%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y-1.2%
Revenue growth 5Y2.53%
Sales Q2Q%-2.3%
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 8.92% on average per year.
- The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y-17.66%
EPS Next 2Y-5.27%
EPS Next 3Y1.2%
EPS Next 5Y8.92%
Revenue Next Year-1.05%
Revenue Next 2Y0.55%
Revenue Next 3Y1.64%
Revenue Next 5Y2.25%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. BBWI Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 5.63 indicates a rather cheap valuation of BBWI.
- 95.90% of the companies in the same industry are more expensive than BBWI, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.18, BBWI is valued rather cheaply.
- The Price/Forward Earnings ratio is 6.84, which indicates a rather cheap valuation of BBWI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BBWI indicates a rather cheap valuation: BBWI is cheaper than 96.72% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 37.96, BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.63 | ||
| Fwd PE | 6.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BBWI is valued cheaper than 88.52% 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 | 4.27 | ||
| EV/EBITDA | 4.75 |
4.3 Compensation for Growth
- BBWI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.27%
EPS Next 3Y1.2%
5. BBWI Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 4.34%, BBWI is a good candidate for dividend investing.
- In the last 3 months the price of BBWI has falen by -21.14%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 3.39, 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 rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
- On average, the dividend of BBWI grows each year by 21.78%, which is quite nice.
- BBWI has been paying a dividend for at least 10 years, so it has a reliable track record.
- As BBWI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)21.78%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
- 25.73% of the earnings are spent on dividend by BBWI. This is a low number and sustainable payout ratio.
- The dividend of BBWI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.73%
EPS Next 2Y-5.27%
EPS Next 3Y1.2%
BBWI Fundamentals: All Metrics, Ratios and Statistics
18.35
+0.25 (+1.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03 2026-03-03/bmo
Earnings (Next)05-19 2026-05-19
Inst Owners101.39%
Inst Owner Change0.09%
Ins Owners0.53%
Ins Owner Change16.81%
Market Cap3.69B
Revenue(TTM)7.29B
Net Income(TTM)649.00M
Analysts71.82
Price Target28.63 (56.02%)
Short Float %7.66%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend0.8
Dividend Growth(5Y)21.78%
DP25.73%
Div Incr Years0
Div Non Decr Years5
Ex-Date02-20 2026-02-20 (0.2)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.12%
Min EPS beat(2)-13.05%
Max EPS beat(2)13.28%
EPS beat(4)2
Avg EPS beat(4)-0.32%
Min EPS beat(4)-13.05%
Max EPS beat(4)13.28%
EPS beat(8)6
Avg EPS beat(8)1.78%
EPS beat(12)10
Avg EPS beat(12)8.34%
EPS beat(16)14
Avg EPS beat(16)15.3%
Revenue beat(2)1
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)1.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)1.91%
Revenue beat(8)1
Avg Revenue beat(8)-1.47%
Revenue beat(12)2
Avg Revenue beat(12)-1.42%
Revenue beat(16)4
Avg Revenue beat(16)-1.1%
PT rev (1m)11.47%
PT rev (3m)26.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.89%
EPS NY rev (1m)2.63%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.63 | ||
| Fwd PE | 6.84 | ||
| P/S | 0.51 | ||
| P/FCF | 4.27 | ||
| P/OCF | 3.35 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.75 |
EPS(TTM)3.26
EY17.77%
EPS(NY)2.68
Fwd EY14.63%
FCF(TTM)4.3
FCFY23.44%
OCF(TTM)5.48
OCFY29.86%
SpS36.25
BVpS-6.37
TBVpS-10.31
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.8% | ||
| ROE | N/A | ||
| ROCE | 32.81% | ||
| ROIC | 24.8% | ||
| ROICexc | 34.16% | ||
| ROICexgc | 49.81% | ||
| OM | 15.65% | ||
| PM (TTM) | 8.9% | ||
| GM | 43.73% | ||
| FCFM | 11.86% |
ROA(3y)15.08%
ROA(5y)16.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.9%
ROIC(5y)26.41%
ROICexc(3y)32.77%
ROICexc(5y)37.9%
ROICexgc(3y)45.59%
ROICexgc(5y)52.78%
ROCE(3y)32.93%
ROCE(5y)34.93%
ROICexgc growth 3Y0.46%
ROICexgc growth 5Y9.21%
ROICexc growth 3Y-1.38%
ROICexc growth 5Y6.29%
OM growth 3Y-4.5%
OM growth 5Y-8.99%
PM growth 3Y-5.6%
PM growth 5Y-7.46%
GM growth 3Y0.53%
GM growth 5Y-1.89%
F-Score5
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 93.31% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 4.34 | ||
| Cash Conversion | 79% | ||
| Profit Quality | 133.28% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.23 |
F-Score5
WACC6.98%
ROIC/WACC3.55
Cap/Depr(3y)94.74%
Cap/Depr(5y)101.41%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.62%
Profit Quality(3y)96.9%
Profit Quality(5y)96.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.1%
EPS 3Y-1.58%
EPS 5Y-0.95%
EPS Q2Q%-1.91%
EPS Next Y-17.66%
EPS Next 2Y-5.27%
EPS Next 3Y1.2%
EPS Next 5Y8.92%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y-1.2%
Revenue growth 5Y2.53%
Sales Q2Q%-2.3%
Revenue Next Year-1.05%
Revenue Next 2Y0.55%
Revenue Next 3Y1.64%
Revenue Next 5Y2.25%
EBIT growth 1Y-9.87%
EBIT growth 3Y-5.64%
EBIT growth 5Y-6.69%
EBIT Next Year15.9%
EBIT Next 3Y7.4%
EBIT Next 5Y8.99%
FCF growth 1Y31.06%
FCF growth 3Y1.96%
FCF growth 5Y-13.74%
OCF growth 1Y24.38%
OCF growth 3Y-1.24%
OCF growth 5Y-11.58%
BATH & BODY WORKS INC / BBWI Fundamental Analysis FAQ
What is the ChartMill fundamental rating of BATH & BODY WORKS INC (BBWI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BBWI.
Can you provide the valuation status for BATH & BODY WORKS INC?
ChartMill assigns a valuation rating of 8 / 10 to BATH & BODY WORKS INC (BBWI). This can be considered as Undervalued.
Can you provide the profitability details for BATH & BODY WORKS INC?
BATH & BODY WORKS INC (BBWI) has a profitability rating of 7 / 10.
Can you provide the financial health for BBWI stock?
The financial health rating of BATH & BODY WORKS INC (BBWI) is 5 / 10.
How sustainable is the dividend of BATH & BODY WORKS INC (BBWI) stock?
The dividend rating of BATH & BODY WORKS INC (BBWI) is 8 / 10 and the dividend payout ratio is 25.73%.