BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBWI - US0708301041 - Common Stock
21.44 USD
-0.01 (-0.05%)
21.11 USD
-0.33 (-1.54%)
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. While BBWI has a great profitability rating, there are some minor concerns on its financial health. BBWI is cheap, but on the other hand it scores bad 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.
- Each year in the past 5 years BBWI has been profitable.
- In the past 5 years BBWI always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 14.01%, BBWI belongs to the best of the industry, outperforming 91.80% of the companies in the same industry.
- The Return On Invested Capital of BBWI (28.69%) is better than 95.08% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BBWI is significantly above the industry average of 12.24%.
- 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
- Looking at the Profit Margin, with a value of 9.51%, BBWI belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
- In the last couple of years the Profit Margin of BBWI has declined.
- With an excellent Operating Margin value of 16.39%, BBWI belongs to the best of the industry, outperforming 93.44% of the companies in the same industry.
- In the last couple of years the Operating Margin of BBWI has declined.
- BBWI has a better Gross Margin (44.13%) than 68.03% of its industry peers.
- BBWI's Gross Margin has been stable in the last couple of years.
| 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.
- BBWI has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.26 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- BBWI has a Altman-Z score (2.26) which is in line with 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.
- BBWI has a better Debt to FCF ratio (4.11) than 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.26 |
ROIC/WACC2.89
WACC9.93%
2.3 Liquidity
- A Current Ratio of 1.21 indicates that BBWI should not have too much problems paying its short term obligations.
- BBWI has a Current ratio (1.21) which is in line with its industry peers.
- 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.
- BBWI's Quick ratio of 0.41 is in line compared to the rest of the industry. BBWI outperforms 40.98% of its industry peers.
| 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.
- Looking at the last year, BBWI shows a decrease in Revenue. The Revenue has decreased by -1.05% in the last year.
- 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)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
- Based on estimates for the next years, BBWI will show a small growth in Earnings Per Share. The EPS will grow by 6.91% on average per year.
- The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y-11.11%
EPS Next 2Y-11.01%
EPS Next 3Y-5.03%
EPS Next 5Y6.91%
Revenue Next Year-2.12%
Revenue Next 2Y-2.04%
Revenue Next 3Y-0.45%
Revenue Next 5Y1.22%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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 6.50.
- 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 28.82, BBWI is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.13 indicates a reasonable valuation of BBWI.
- BBWI's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 94.26% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. BBWI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 8.13 |
4.2 Price Multiples
- BBWI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBWI is cheaper than 86.07% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BBWI is valued cheaper than 96.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.64 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
- BBWI has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as BBWI's earnings are expected to decrease with -5.03% in the coming years.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-11.01%
EPS Next 3Y-5.03%
5. Dividend
5.1 Amount
- BBWI has a Yearly Dividend Yield of 3.54%.
- BBWI's Dividend Yield is rather good when compared to the industry average which is at 2.15. BBWI pays more dividend than 89.34% of the companies 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 | 3.54% |
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
- 24.18% of the earnings are spent on dividend by BBWI. This is a low number and sustainable payout ratio.
DP24.18%
EPS Next 2Y-11.01%
EPS Next 3Y-5.03%
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 6 / 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 6.5 and the Price/Book (PB) ratio is -2.76.
Can you provide the dividend sustainability for BBWI stock?
The dividend rating of BATH & BODY WORKS INC (BBWI) is 6 / 10 and the dividend payout ratio is 24.18%.