BATH & BODY WORKS INC (BBWI) Fundamental Analysis & Valuation
NYSE:BBWI • US0708301041
18.78 USD
-1.27 (-6.33%)
At close: Mar 12, 2026
18.9797 USD
+0.2 (+1.06%)
After Hours: 3/12/2026, 8:24:28 PM
This BBWI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, BBWI scores 6 out of 10 in our fundamental rating. BBWI was compared to 124 industry peers in the Specialty Retail industry. While BBWI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BBWI is valued quite cheap, but it does not seem to be growing.
1. BBWI Profitability Analysis
1.1 Basic Checks
- In the past year BBWI was profitable.
- BBWI had a positive operating cash flow in the past year.
- BBWI had positive earnings in 4 of the past 5 years.
- Of the past 5 years BBWI 4 years had a positive operating cash flow.
1.2 Ratios
- BBWI's Return On Assets of 14.01% is amongst the best of the industry. BBWI outperforms 91.94% of its industry peers.
- BBWI's Return On Invested Capital of 28.69% is amongst the best of the industry. BBWI outperforms 95.16% 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 13.59%.
- 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
- The Profit Margin of BBWI (9.51%) is better than 89.52% of its industry peers.
- In the last couple of years the Profit Margin of BBWI has declined.
- Looking at the Operating Margin, with a value of 16.39%, BBWI belongs to the top of the industry, outperforming 94.35% of the companies in the same industry.
- BBWI's Operating Margin has declined in the last couple of years.
- BBWI has a better Gross Margin (44.13%) than 68.55% 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. BBWI Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BBWI is creating value.
- There is no outstanding debt for BBWI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 2.21 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- BBWI has a Altman-Z score (2.21) which is in line with its industry peers.
- BBWI has a debt to FCF ratio of 4.11. This is a neutral value as BBWI would need 4.11 years to pay back of all of its debts.
- BBWI's Debt to FCF ratio of 4.11 is fine compared to the rest of the industry. BBWI outperforms 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.21 |
ROIC/WACC2.86
WACC10.02%
2.3 Liquidity
- BBWI has a Current Ratio of 1.21. This is a normal value and indicates that BBWI is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.21, BBWI perfoms like the industry average, outperforming 44.35% of the companies in the same 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.
- The Quick ratio of BBWI (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.41 |
3. BBWI Growth Analysis
3.1 Past
- BBWI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.15%.
- BBWI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.53% yearly.
EPS 1Y (TTM)-53.15%
EPS 3Y-23.02%
EPS 5Y-14.53%
EPS Q2Q%-83.25%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-42.83%
3.2 Future
- BBWI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.22% yearly.
- BBWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.27% yearly.
EPS Next Y67.67%
EPS Next 2Y35.24%
EPS Next 3Y36.39%
EPS Next 5Y26.22%
Revenue Next Year-1.85%
Revenue Next 2Y0.5%
Revenue Next 3Y1.7%
Revenue Next 5Y2.27%
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.
4. BBWI Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.04 indicates a correct valuation of BBWI.
- Based on the Price/Earnings ratio, BBWI is valued cheaply inside the industry as 81.45% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 25.71. BBWI is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 7.18 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 93.55% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of BBWI to the average of the S&P500 Index (23.82), we can say BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 7.18 |
4.2 Price Multiples
- BBWI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBWI is cheaper than 87.10% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BBWI is valued cheaper than 94.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.06 | ||
| EV/EBITDA | 5.11 |
4.3 Compensation for Growth
- BBWI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of BBWI may justify a higher PE ratio.
- BBWI's earnings are expected to grow with 36.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y35.24%
EPS Next 3Y36.39%
5. BBWI Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.59%, BBWI has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.36, BBWI pays a better dividend. On top of this BBWI pays more dividend than 88.71% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BBWI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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 2Y35.24%
EPS Next 3Y36.39%
BBWI Fundamentals: All Metrics, Ratios and Statistics
18.78
-1.27 (-6.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-20 2026-02-20/amc
Earnings (Next)05-19 2026-05-19
Inst Owners99.96%
Inst Owner Change-7.19%
Ins Owners0.35%
Ins Owner Change3.09%
Market Cap3.84B
Revenue(TTM)N/A
Net Income(TTM)699.00M
Analysts72.38
Price Target25.68 (36.74%)
Short Float %6.59%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
Yearly Dividend0.8
Dividend Growth(5Y)-7.77%
DP24.18%
Div Incr Years0
Div Non Decr Years4
Ex-Date02-20 2026-02-20 (0.2)
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)2.03%
PT rev (3m)14.17%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)1.23%
EPS NY rev (1m)0.35%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 7.18 | ||
| P/S | 0.52 | ||
| P/FCF | 4.06 | ||
| P/OCF | 3.26 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.11 |
EPS(TTM)1.56
EY8.31%
EPS(NY)2.62
Fwd EY13.93%
FCF(TTM)4.62
FCFY24.61%
OCF(TTM)5.76
OCFY30.69%
SpS35.92
BVpS-7.78
TBVpS-11.65
PEG (NY)0.18
PEG (5Y)N/A
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 | 2.21 |
F-Score6
WACC10.02%
ROIC/WACC2.86
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)-53.15%
EPS 3Y-23.02%
EPS 5Y-14.53%
EPS Q2Q%-83.25%
EPS Next Y67.67%
EPS Next 2Y35.24%
EPS Next 3Y36.39%
EPS Next 5Y26.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-42.83%
Revenue Next Year-1.85%
Revenue Next 2Y0.5%
Revenue Next 3Y1.7%
Revenue Next 5Y2.27%
EBIT growth 1Y-6.15%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year5.76%
EBIT Next 3Y-0.42%
EBIT Next 5Y4.45%
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 6 / 10 to BBWI.
What is the valuation status for BBWI stock?
ChartMill assigns a valuation rating of 9 / 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 12.04 and the Price/Book (PB) ratio is -2.41.
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%.