BATH & BODY WORKS INC (BBWI)
US0708301041 - Common Stock
BBWI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 126 industry peers in the Specialty Retail industry. While BBWI has a great profitability rating, there are some minor concerns on its financial health. BBWI is valued correctly, but it does not seem to be growing.
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.
BBWI had positive earnings in 4 of the past 5 years.
In the past 5 years BBWI always reported a positive cash flow from operatings.
1.2 Ratios
BBWI's Return On Assets of 16.07% is amongst the best of the industry. BBWI outperforms 92.86% of its industry peers.
BBWI has a Return On Invested Capital of 24.95%. This is amongst the best in the industry. BBWI outperforms 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BBWI is significantly above the industry average of 14.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.07% | ||
| ROE | N/A | ||
| ROIC | 24.95% |
ROA(3y)17.58%
ROA(5y)11.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)28.79%
ROIC(5y)22.47%
1.3 Margins
BBWI has a better Profit Margin (11.82%) than 95.24% of its industry peers.
In the last couple of years the Profit Margin of BBWI has grown nicely.
Looking at the Operating Margin, with a value of 17.31%, BBWI belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Operating Margin of BBWI has grown nicely.
Looking at the Gross Margin, with a value of 43.57%, BBWI is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
BBWI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.31% | ||
| PM (TTM) | 11.82% | ||
| GM | 43.57% |
OM growth 3Y-12.02%
OM growth 5Y9.76%
PM growth 3Y-3.42%
PM growth 5Y19.42%
GM growth 3Y-3.26%
GM growth 5Y2.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BBWI is creating value.
Compared to 1 year ago, BBWI has less shares outstanding
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
An Altman-Z score of 2.71 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.71, BBWI perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
The Debt to FCF ratio of BBWI is 6.69, which is on the high side as it means it would take BBWI, 6.69 years of fcf income to pay off all of its debts.
BBWI has a Debt to FCF ratio of 6.69. This is comparable to the rest of the industry: BBWI outperforms 56.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 2.71 |
ROIC/WACC2.7
WACC9.25%
2.3 Liquidity
A Current Ratio of 1.64 indicates that BBWI should not have too much problems paying its short term obligations.
BBWI's Current ratio of 1.64 is fine compared to the rest of the industry. BBWI outperforms 61.11% of its industry peers.
BBWI has a Quick Ratio of 1.09. 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 better Quick ratio (1.09) than 70.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for BBWI have decreased by -4.39% in the last year.
BBWI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.93% yearly.
BBWI shows a decrease in Revenue. In the last year, the revenue decreased by -1.73%.
The Revenue for BBWI have been decreasing by -10.91% on average. This is quite bad
EPS 1Y (TTM)-4.39%
EPS 3Y-1.48%
EPS 5Y2.93%
EPS growth Q2Q10.75%
Revenue 1Y (TTM)-1.73%
Revenue growth 3Y4.91%
Revenue growth 5Y-10.91%
Revenue growth Q2Q0.83%
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 14.21% on average per year.
The Revenue is expected to grow by 3.69% on average over the next years.
EPS Next Y2.53%
EPS Next 2Y7.81%
EPS Next 3Y9.12%
EPS Next 5Y14.21%
Revenue Next Year0.55%
Revenue Next 2Y2.26%
Revenue Next 3Y3.15%
Revenue Next 5Y3.69%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.40, the valuation of BBWI can be described as correct.
Based on the Price/Earnings ratio, BBWI is valued a bit cheaper than 76.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of BBWI to the average of the S&P500 Index (24.55), we can say BBWI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.07, the valuation of BBWI can be described as correct.
73.02% of the companies in the same industry are more expensive than BBWI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.92. BBWI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 13.07 |
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 61.11% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBWI indicates a somewhat cheap valuation: BBWI is cheaper than 67.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 8.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BBWI may justify a higher PE ratio.
PEG (NY)5.29
PEG (5Y)4.57
EPS Next 2Y7.81%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.75%, BBWI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.49, BBWI pays a better dividend. On top of this BBWI pays more dividend than 80.16% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, BBWI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of BBWI decreases each year by -19.69%.
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)-19.69%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
20.73% of the earnings are spent on dividend by BBWI. This is a low number and sustainable payout ratio.
DP20.73%
EPS Next 2Y7.81%
EPS Next 3Y9.12%
BATH & BODY WORKS INC
NYSE:BBWI (5/1/2024, 7:04:01 PM)
After market: 43.8115 -0.02 (-0.04%)43.83
-1.59 (-3.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 13.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.29
PEG (5Y)4.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.07% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.31% | ||
| PM (TTM) | 11.82% | ||
| GM | 43.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-4.39%
EPS 3Y-1.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.73%
Revenue growth 3Y4.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y