BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBWI - US0708301041 - Common Stock
20.08 USD
-0.11 (-0.54%)
20.09 USD
+0.01 (+0.05%)
We assign a fundamental rating of 5 out of 10 to BBWI. BBWI was compared to 123 industry peers in the Specialty Retail industry. BBWI has an excellent profitability rating, but there are some minor concerns on its financial health. BBWI is cheap, but on the other hand it scores bad on growth. Finally BBWI also has an excellent dividend rating.
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.
BBWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BBWI has a Return On Assets of 14.01%. This is amongst the best in the industry. BBWI outperforms 91.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.69%, BBWI belongs to the top of the industry, outperforming 95.12% 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 12.14%.
The 3 year average ROIC (27.00%) for BBWI is below the current ROIC(28.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.01% | ||
| ROE | N/A | ||
| ROIC | 28.69% |
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 9.51% is amongst the best of the industry. BBWI outperforms 88.62% of its industry peers.
BBWI's Profit Margin has declined in the last couple of years.
BBWI has a Operating Margin of 16.39%. This is amongst the best in the industry. BBWI outperforms 93.50% of its industry peers.
BBWI's Operating Margin has declined in the last couple of years.
BBWI's Gross Margin of 44.13% is fine compared to the rest of the industry. BBWI outperforms 67.48% of its industry peers.
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 | 16.39% | ||
| PM (TTM) | 9.51% | ||
| GM | 44.13% |
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.
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.
The debt/assets ratio for BBWI has been reduced compared to a year ago.
2.2 Solvency
BBWI has an Altman-Z score of 2.23. 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 2.23 is in line compared to the rest of the industry. BBWI outperforms 51.22% of its industry peers.
The Debt to FCF ratio of BBWI is 4.11, which is a neutral value as it means it would take BBWI, 4.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BBWI (4.11) is better than 69.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.23 |
ROIC/WACC2.9
WACC9.89%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BBWI should not have too much problems paying its short term obligations.
The Current ratio of BBWI (1.21) is comparable to the rest of the industry.
BBWI has a Quick Ratio of 1.21. 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 Quick ratio value of 0.41, BBWI is not doing good in the industry: 60.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
BBWI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been growing slightly by 7.87% on average over the past years.
The Revenue has decreased by -1.05% in the past year.
The Revenue has been growing slightly by 6.22% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%-0.99%
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.
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 Y-11.22%
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
EPS Next 5Y9.63%
Revenue Next Year-2.26%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.36%
Revenue Next 5Y3.09%
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.
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 6.08.
BBWI's Price/Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 96.75% of the companies in the same industry.
When comparing the Price/Earnings ratio of BBWI to the average of the S&P500 Index (26.51), we can say BBWI is valued rather cheaply.
A Price/Forward Earnings ratio of 7.53 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 93.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BBWI to the average of the S&P500 Index (23.13), we can say BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 7.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBWI is valued cheaper than 86.99% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.35 | ||
| EV/EBITDA | 5.31 |
4.3 Compensation for Growth
BBWI has a very decent profitability rating, which may justify a higher PE ratio.
BBWI's earnings are expected to decrease with -3.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 4.06%, which is a nice return.
In the last 3 months the price of BBWI has falen by -22.41%. 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 2.01, BBWI pays a better dividend. On top of this BBWI pays more dividend than 89.43% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 24.18% of its income as dividend. This is a sustainable payout ratio.
DP24.18%
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
20.08
-0.11 (-0.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.79%
Inst Owner Change7.62%
Ins Owners0.35%
Ins Owner Change2.78%
Market Cap4.11B
Revenue(TTM)7.35B
Net Income(TTM)699.00M
Analysts74.29
Price Target22.58 (12.45%)
Short Float %5.82%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend0.8
Dividend Growth(5Y)-7.77%
DP24.18%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.21%
Min EPS beat(2)-13.05%
Max EPS beat(2)-3.37%
EPS beat(4)2
Avg EPS beat(4)-3.59%
Min EPS beat(4)-13.05%
Max EPS beat(4)1.86%
EPS beat(8)6
Avg EPS beat(8)1.11%
EPS beat(12)10
Avg EPS beat(12)8.28%
EPS beat(16)13
Avg EPS beat(16)14.43%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)-2.21%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)-1.48%
Revenue beat(8)1
Avg Revenue beat(8)-1.63%
Revenue beat(12)2
Avg Revenue beat(12)-1.5%
Revenue beat(16)3
Avg Revenue beat(16)-1.28%
PT rev (1m)-38.87%
PT rev (3m)-43.6%
EPS NQ rev (1m)-7.54%
EPS NQ rev (3m)-20.9%
EPS NY rev (1m)-15.9%
EPS NY rev (3m)-16.92%
Revenue NQ rev (1m)-1.67%
Revenue NQ rev (3m)-8.85%
Revenue NY rev (1m)-4.35%
Revenue NY rev (3m)-4.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 7.53 | ||
| P/S | 0.56 | ||
| P/FCF | 4.35 | ||
| P/OCF | 3.48 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.31 |
EPS(TTM)3.3
EY16.43%
EPS(NY)2.67
Fwd EY13.27%
FCF(TTM)4.62
FCFY23.01%
OCF(TTM)5.76
OCFY28.71%
SpS35.92
BVpS-7.78
TBVpS-11.65
PEG (NY)N/A
PEG (5Y)0.77
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.01% | ||
| ROE | N/A | ||
| ROCE | 35.07% | ||
| ROIC | 28.69% | ||
| ROICexc | 30.81% | ||
| ROICexgc | 40.96% | ||
| OM | 16.39% | ||
| PM (TTM) | 9.51% | ||
| GM | 44.13% | ||
| FCFM | 12.86% |
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%
ROICexgc growth 3Y-17.12%
ROICexgc 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-Score6
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 89.31% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.44% | ||
| Profit Quality | 135.34% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 2.23 |
F-Score6
WACC9.89%
ROIC/WACC2.9
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)0%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%-28.57%
EPS Next Y-11.22%
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
EPS Next 5Y9.63%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%-0.99%
Revenue Next Year-2.26%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.36%
Revenue Next 5Y3.09%
EBIT growth 1Y-6.15%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year3.82%
EBIT Next 3Y0.49%
EBIT Next 5Y7.01%
FCF growth 1Y21.44%
FCF growth 3Y-18.56%
FCF growth 5Y-3.24%
OCF growth 1Y6.79%
OCF growth 3Y-15.95%
OCF growth 5Y-6.44%
BATH & BODY WORKS INC / BBWI FAQ
What is the ChartMill fundamental rating of BATH & BODY WORKS INC (BBWI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BBWI.
What is the valuation status for BBWI stock?
ChartMill assigns a valuation rating of 8 / 10 to BATH & BODY WORKS INC (BBWI). This can be considered as Undervalued.
How profitable is BATH & BODY WORKS INC (BBWI) stock?
BATH & BODY WORKS INC (BBWI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of BATH & BODY WORKS INC (BBWI) stock?
The Price/Earnings (PE) ratio for BATH & BODY WORKS INC (BBWI) is 6.08 and the Price/Book (PB) ratio is -2.58.
Can you provide the dividend sustainability for BBWI stock?
The dividend rating of BATH & BODY WORKS INC (BBWI) is 7 / 10 and the dividend payout ratio is 24.18%.