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 scores excellent on profitability, but there are some minor concerns on its financial health. BBWI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
BBWI had a positive operating cash flow in the past year.
Each year in the past 5 years BBWI has 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 (16.72%) is better than 94.26% of its industry peers.
With an excellent Return On Invested Capital value of 29.38%, BBWI belongs to the best of the industry, outperforming 95.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BBWI 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 has a Profit Margin of 11.11%. This is amongst the best in the industry. BBWI outperforms 91.80% of its industry peers.
BBWI's Profit Margin has declined in the last couple of years.
The Operating Margin of BBWI (17.53%) is better than 94.26% of its industry peers.
In the last couple of years the Operating Margin of BBWI has declined.
With a decent Gross Margin value of 44.55%, BBWI is doing good in 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
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
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 2.67. 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.
With a decent Altman-Z score value of 2.67, BBWI is doing good in the industry, outperforming 60.66% of the companies in the same industry.
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 has a better Debt to FCF ratio (4.98) than 66.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 2.67 |
ROIC/WACC3.02
WACC9.72%
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.
The Current ratio of BBWI (1.41) is comparable to the rest of the industry.
A Quick Ratio of 0.73 indicates that BBWI may have some problems paying its short term obligations.
BBWI has a better Quick ratio (0.73) than 63.93% of its industry peers.
| 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%.
Measured over the past 5 years, BBWI shows a small growth in Earnings Per Share. The EPS has been growing by 7.87% on average per year.
BBWI shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
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.
The Revenue is expected to grow by 3.09% on average over the next years.
EPS Next Y6.42%
EPS Next 2Y7.52%
EPS Next 3Y7.76%
EPS Next 5Y9.63%
Revenue Next Year2.36%
Revenue Next 2Y2.55%
Revenue Next 3Y2.65%
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.
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
With a Price/Earnings ratio of 9.24, the valuation of BBWI can be described as very reasonable.
Based on the Price/Earnings ratio, BBWI is valued cheaply inside the industry as 86.89% of the companies are valued more expensively.
BBWI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
A Price/Forward Earnings ratio of 8.26 indicates a reasonable valuation of BBWI.
88.52% of the companies in the same industry are more expensive than BBWI, based on the Price/Forward Earnings ratio.
BBWI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBWI is valued a bit cheaper than the industry average as 77.87% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaply inside the industry as 86.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.61 | ||
| EV/EBITDA | 6.38 |
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)1.44
PEG (5Y)1.17
EPS Next 2Y7.52%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 2.52%.
Compared to an average industry Dividend Yield of 5.05, BBWI pays a better dividend. On top of this BBWI pays more dividend than 84.43% of the companies listed in the same industry.
BBWI's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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 21.45% of its income as dividend. This is a sustainable payout ratio.
DP21.45%
EPS Next 2Y7.52%
EPS Next 3Y7.76%
31.78
+0.07 (+0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.11%
Inst Owner Change-1.13%
Ins Owners0.28%
Ins Owner Change22.38%
Market Cap6.72B
Analysts80.91
Price Target41.03 (29.11%)
Short Float %3.21%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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)-2.15%
PT rev (3m)-13.39%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-13.21%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 8.26 | ||
| P/S | 0.92 | ||
| P/FCF | 8.61 | ||
| P/OCF | 6.74 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.38 |
EPS(TTM)3.44
EY10.82%
EPS(NY)3.85
Fwd EY12.11%
FCF(TTM)3.69
FCFY11.61%
OCF(TTM)4.72
OCFY14.84%
SpS34.72
BVpS-6.86
TBVpS-10.6
PEG (NY)1.44
PEG (5Y)1.17
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 | 2.67 |
F-Score7
WACC9.72%
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 Y6.42%
EPS Next 2Y7.52%
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 Year2.36%
Revenue Next 2Y2.55%
Revenue Next 3Y2.65%
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%