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BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis

NYSE:BFH - New York Stock Exchange, Inc. - US0185811082 - Common Stock - Currency: USD

52.04  -1.54 (-2.87%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to BFH. BFH was compared to 52 industry peers in the Consumer Finance industry. BFH has a medium profitability rating, but doesn't score so well on its financial health evaluation. BFH is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

BFH had positive earnings in the past year.
BFH had a positive operating cash flow in the past year.
BFH had positive earnings in each of the past 5 years.
In the past 5 years BFH always reported a positive cash flow from operatings.
BFH Yearly Net Income VS EBIT VS OCF VS FCFBFH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

1.2 Ratios

BFH has a Return On Assets (1.25%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.13%, BFH is in line with its industry, outperforming 48.08% of the companies in the same industry.
BFH has a better Return On Invested Capital (4.36%) than 61.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BFH is significantly below the industry average of 10.33%.
Industry RankSector Rank
ROA 1.25%
ROE 9.13%
ROIC 4.36%
ROA(3y)1.73%
ROA(5y)1.96%
ROE(3y)14.51%
ROE(5y)19.2%
ROIC(3y)4.4%
ROIC(5y)4.64%
BFH Yearly ROA, ROE, ROICBFH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

BFH's Profit Margin of 6.11% is on the low side compared to the rest of the industry. BFH is outperformed by 65.38% of its industry peers.
In the last couple of years the Profit Margin of BFH has remained more or less at the same level.
BFH has a Operating Margin of 28.52%. This is amongst the best in the industry. BFH outperforms 86.54% of its industry peers.
BFH's Operating Margin has been stable in the last couple of years.
The Gross Margin of BFH (93.00%) is better than 88.46% of its industry peers.
BFH's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.52%
PM (TTM) 6.11%
GM 93%
OM growth 3Y-9.81%
OM growth 5Y0.65%
PM growth 3Y-35.19%
PM growth 5Y0.78%
GM growth 3Y0.66%
GM growth 5Y0.7%
BFH Yearly Profit, Operating, Gross MarginsBFH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

3

2. Health

2.1 Basic Checks

BFH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BFH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BFH has more shares outstanding
The debt/assets ratio for BFH has been reduced compared to a year ago.
BFH Yearly Shares OutstandingBFH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
BFH Yearly Total Debt VS Total AssetsBFH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

BFH has an Altman-Z score of 0.91. This is a bad value and indicates that BFH is not financially healthy and even has some risk of bankruptcy.
BFH's Altman-Z score of 0.91 is fine compared to the rest of the industry. BFH outperforms 63.46% of its industry peers.
BFH has a debt to FCF ratio of 10.23. This is a negative value and a sign of low solvency as BFH would need 10.23 years to pay back of all of its debts.
BFH has a Debt to FCF ratio (10.23) which is in line with its industry peers.
A Debt/Equity ratio of 5.94 is on the high side and indicates that BFH has dependencies on debt financing.
BFH's Debt to Equity ratio of 5.94 is on the low side compared to the rest of the industry. BFH is outperformed by 76.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.94
Debt/FCF 10.23
Altman-Z 0.91
ROIC/WACC1.63
WACC2.68%
BFH Yearly LT Debt VS Equity VS FCFBFH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

BFH has a Current Ratio of 1.52. This is a normal value and indicates that BFH is financially healthy and should not expect problems in meeting its short term obligations.
BFH has a Current ratio (1.52) which is comparable to the rest of the industry.
BFH has a Quick Ratio of 1.52. This is a normal value and indicates that BFH is financially healthy and should not expect problems in meeting its short term obligations.
BFH has a Quick ratio of 1.52. This is comparable to the rest of the industry: BFH outperforms 59.62% of its industry peers.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 1.52
BFH Yearly Current Assets VS Current LiabilitesBFH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2

3. Growth

3.1 Past

BFH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.04%.
BFH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.20% yearly.
Looking at the last year, BFH shows a decrease in Revenue. The Revenue has decreased by -4.58% in the last year.
BFH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.19% yearly.
EPS 1Y (TTM)-11.04%
EPS 3Y-25.81%
EPS 5Y-15.2%
EPS Q2Q%2.96%
Revenue 1Y (TTM)-4.58%
Revenue growth 3Y8.3%
Revenue growth 5Y-0.19%
Sales Q2Q%-2.12%

3.2 Future

Based on estimates for the next years, BFH will show a decrease in Earnings Per Share. The EPS will decrease by -0.75% on average per year.
The Revenue is expected to grow by 3.35% on average over the next years.
EPS Next Y-1.3%
EPS Next 2Y11.53%
EPS Next 3Y12.44%
EPS Next 5Y-0.75%
Revenue Next Year0.23%
Revenue Next 2Y2.18%
Revenue Next 3Y3.3%
Revenue Next 5Y3.35%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
BFH Yearly Revenue VS EstimatesBFH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
BFH Yearly EPS VS EstimatesBFH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15 20

8

4. Valuation

4.1 Price/Earnings Ratio

BFH is valuated cheaply with a Price/Earnings ratio of 7.02.
BFH's Price/Earnings ratio is a bit cheaper when compared to the industry. BFH is cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, BFH is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.71, the valuation of BFH can be described as very cheap.
BFH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BFH is cheaper than 76.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. BFH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.02
Fwd PE 5.71
BFH Price Earnings VS Forward Price EarningsBFH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BFH indicates a rather cheap valuation: BFH is cheaper than 88.46% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BFH indicates a rather cheap valuation: BFH is cheaper than 88.46% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 1.36
EV/EBITDA 2.44
BFH Per share dataBFH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

BFH has a very decent profitability rating, which may justify a higher PE ratio.
BFH's earnings are expected to grow with 12.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.53%
EPS Next 3Y12.44%

4

5. Dividend

5.1 Amount

BFH has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 3.69, BFH pays a bit more dividend than its industry peers.
BFH's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
Industry RankSector Rank
Dividend Yield 1.7%

5.2 History

The dividend of BFH decreases each year by -19.10%.
BFH has been paying a dividend for at least 10 years, so it has a reliable track record.
BFH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-19.1%
Div Incr Years0
Div Non Decr Years3
BFH Yearly Dividends per shareBFH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

15.71% of the earnings are spent on dividend by BFH. This is a low number and sustainable payout ratio.
BFH's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP15.71%
EPS Next 2Y11.53%
EPS Next 3Y12.44%
BFH Yearly Income VS Free CF VS DividendBFH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
BFH Dividend Payout.BFH Dividend Payout, showing the Payout Ratio.BFH Dividend Payout.PayoutRetained Earnings

BREAD FINANCIAL HOLDINGS INC

NYSE:BFH (6/13/2025, 11:59:36 AM)

52.04

-1.54 (-2.87%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)04-24 2025-04-24/bmo
Earnings (Next)07-23 2025-07-23/amc
Inst Owners102.44%
Inst Owner ChangeN/A
Ins Owners0.81%
Ins Owner Change11.38%
Market Cap2.42B
Analysts69
Price Target57.44 (10.38%)
Short Float %9.18%
Short Ratio4.16
Dividend
Industry RankSector Rank
Dividend Yield 1.7%
Yearly Dividend0.87
Dividend Growth(5Y)-19.1%
DP15.71%
Div Incr Years0
Div Non Decr Years3
Ex-Date05-09 2025-05-09 (0.21)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.93%
Min EPS beat(2)-58.34%
Max EPS beat(2)22.48%
EPS beat(4)2
Avg EPS beat(4)2.55%
Min EPS beat(4)-58.34%
Max EPS beat(4)48.84%
EPS beat(8)5
Avg EPS beat(8)124.28%
EPS beat(12)8
Avg EPS beat(12)79.12%
EPS beat(16)10
Avg EPS beat(16)63.5%
Revenue beat(2)1
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-5.07%
Max Revenue beat(2)0.74%
Revenue beat(4)2
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)0.8%
Revenue beat(8)4
Avg Revenue beat(8)0.96%
Revenue beat(12)8
Avg Revenue beat(12)5.84%
Revenue beat(16)9
Avg Revenue beat(16)2.05%
PT rev (1m)-6.27%
PT rev (3m)-20.35%
EPS NQ rev (1m)4.22%
EPS NQ rev (3m)-3.43%
EPS NY rev (1m)5.68%
EPS NY rev (3m)4.82%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.73%
Valuation
Industry RankSector Rank
PE 7.02
Fwd PE 5.71
P/S 0.53
P/FCF 1.36
P/OCF 1.34
P/B 0.79
P/tB 1.04
EV/EBITDA 2.44
EPS(TTM)7.41
EY14.24%
EPS(NY)9.12
Fwd EY17.52%
FCF(TTM)38.26
FCFY73.52%
OCF(TTM)38.78
OCFY74.51%
SpS98.45
BVpS65.91
TBVpS50.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.25%
ROE 9.13%
ROCE 14.08%
ROIC 4.36%
ROICexc 5.37%
ROICexgc 6.07%
OM 28.52%
PM (TTM) 6.11%
GM 93%
FCFM 38.86%
ROA(3y)1.73%
ROA(5y)1.96%
ROE(3y)14.51%
ROE(5y)19.2%
ROIC(3y)4.4%
ROIC(5y)4.64%
ROICexc(3y)5.33%
ROICexc(5y)5.71%
ROICexgc(3y)5.64%
ROICexgc(5y)6.71%
ROCE(3y)16.5%
ROCE(5y)14.09%
ROICexcg growth 3Y3.7%
ROICexcg growth 5Y-10.26%
ROICexc growth 3Y3.14%
ROICexc growth 5Y-6.25%
OM growth 3Y-9.81%
OM growth 5Y0.65%
PM growth 3Y-35.19%
PM growth 5Y0.78%
GM growth 3Y0.66%
GM growth 5Y0.7%
F-Score6
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 5.94
Debt/FCF 10.23
Debt/EBITDA 13.06
Cap/Depr 27.27%
Cap/Sales 0.52%
Interest Coverage 250
Cash Conversion 129.39%
Profit Quality 636.07%
Current Ratio 1.52
Quick Ratio 1.52
Altman-Z 0.91
F-Score6
WACC2.68%
ROIC/WACC1.63
Cap/Depr(3y)47.19%
Cap/Depr(5y)47.85%
Cap/Sales(3y)1.11%
Cap/Sales(5y)1.41%
Profit Quality(3y)575.46%
Profit Quality(5y)552.61%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.04%
EPS 3Y-25.81%
EPS 5Y-15.2%
EPS Q2Q%2.96%
EPS Next Y-1.3%
EPS Next 2Y11.53%
EPS Next 3Y12.44%
EPS Next 5Y-0.75%
Revenue 1Y (TTM)-4.58%
Revenue growth 3Y8.3%
Revenue growth 5Y-0.19%
Sales Q2Q%-2.12%
Revenue Next Year0.23%
Revenue Next 2Y2.18%
Revenue Next 3Y3.3%
Revenue Next 5Y3.35%
EBIT growth 1Y-8.41%
EBIT growth 3Y-2.32%
EBIT growth 5Y0.46%
EBIT Next Year-70.19%
EBIT Next 3Y-28.03%
EBIT Next 5YN/A
FCF growth 1Y5.38%
FCF growth 3Y7.71%
FCF growth 5Y11.13%
OCF growth 1Y3.2%
OCF growth 3Y6.41%
OCF growth 5Y8.83%