BREAD FINANCIAL HOLDINGS INC (BFH)

US0185811082 - Common Stock

37.24  -0.38 (-1.01%)

After market: 37.24 0 (0%)

Fundamental Rating

6

BFH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Consumer Finance industry. While BFH has a great profitability rating, there are some minor concerns on its financial health. BFH has a bad growth rate and is valued cheaply. These ratings could make BFH a good candidate for value investing.



8

1. Profitability

1.1 Basic Checks

In the past year BFH was profitable.
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.

1.2 Ratios

With a decent Return On Assets value of 3.10%, BFH is doing good in the industry, outperforming 72.55% of the companies in the same industry.
BFH has a Return On Equity of 24.57%. This is amongst the best in the industry. BFH outperforms 88.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.29%, BFH is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BFH is below the industry average of 7.45%.
The last Return On Invested Capital (5.29%) for BFH is above the 3 year average (4.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.1%
ROE 24.57%
ROIC 5.29%
ROA(3y)2.55%
ROA(5y)1.93%
ROE(3y)24.28%
ROE(5y)20.77%
ROIC(3y)4.36%
ROIC(5y)4.95%

1.3 Margins

With a decent Profit Margin value of 14.80%, BFH is doing good in the industry, outperforming 64.71% of the companies in the same industry.
In the last couple of years the Profit Margin of BFH has declined.
BFH's Operating Margin of 33.51% is amongst the best of the industry. BFH outperforms 94.12% of its industry peers.
In the last couple of years the Operating Margin of BFH has grown nicely.
BFH has a better Gross Margin (91.14%) than 86.27% of its industry peers.
In the last couple of years the Gross Margin of BFH has grown nicely.
Industry RankSector Rank
OM 33.51%
PM (TTM) 14.8%
GM 91.14%
OM growth 3Y17%
OM growth 5Y1.58%
PM growth 3Y38.36%
PM growth 5Y-2.56%
GM growth 3Y0.57%
GM growth 5Y10.53%

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BFH is creating value.
The number of shares outstanding for BFH has been reduced compared to 1 year ago.
The number of shares outstanding for BFH has been reduced compared to 5 years ago.
The debt/assets ratio for BFH has been reduced compared to a year ago.

2.2 Solvency

BFH has an Altman-Z score of 0.90. This is a bad value and indicates that BFH is not financially healthy and even has some risk of bankruptcy.
BFH has a Altman-Z score of 0.90. This is in the better half of the industry: BFH outperforms 60.78% of its industry peers.
The Debt to FCF ratio of BFH is 9.75, which is on the high side as it means it would take BFH, 9.75 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.75, BFH is in line with its industry, outperforming 50.98% of the companies in the same industry.
BFH has a Debt/Equity ratio of 6.48. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.48, BFH is not doing good in the industry: 84.31% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 6.48
Debt/FCF 9.75
Altman-Z 0.9
ROIC/WACC2.3
WACC2.3%

2.3 Liquidity

BFH has a Current Ratio of 1.51. 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 better Current ratio (1.51) than 60.78% of its industry peers.
BFH has a Quick Ratio of 1.51. 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 1.51. This is in the better half of the industry: BFH outperforms 60.78% of its industry peers.
Industry RankSector Rank
Current Ratio 1.51
Quick Ratio 1.51

3

3. Growth

3.1 Past

BFH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 229.08%, which is quite impressive.
Measured over the past years, BFH shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.35% on average per year.
The Revenue has grown by 11.90% in the past year. This is quite good.
The Revenue has been decreasing by -3.22% on average over the past years.
EPS 1Y (TTM)229.08%
EPS 3Y16.22%
EPS 5Y-8.35%
EPS growth Q2Q133.58%
Revenue 1Y (TTM)11.9%
Revenue growth 3Y8.2%
Revenue growth 5Y-3.22%
Revenue growth Q2Q-0.49%

3.2 Future

BFH is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -23.45% yearly.
The Revenue is expected to decrease by -2.26% on average over the next years.
EPS Next Y-48.79%
EPS Next 2Y-22.93%
EPS Next 3Y-13.24%
EPS Next 5Y-23.45%
Revenue Next Year-7.07%
Revenue Next 2Y-4.05%
Revenue Next 3Y-2.26%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 2.53 indicates a rather cheap valuation of BFH.
92.16% of the companies in the same industry are more expensive than BFH, based on the Price/Earnings ratio.
BFH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 4.94 indicates a rather cheap valuation of BFH.
Based on the Price/Forward Earnings ratio, BFH is valued cheaply inside the industry as 84.31% of the companies are valued more expensively.
BFH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 2.53
Fwd PE 4.94

4.2 Price Multiples

86.27% of the companies in the same industry are more expensive than BFH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BFH is valued cheaply inside the industry as 90.20% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 0.95
EV/EBITDA 2.04

4.3 Compensation for Growth

The excellent profitability rating of BFH may justify a higher PE ratio.
BFH's earnings are expected to decrease with -13.24% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.93%
EPS Next 3Y-13.24%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.18%, BFH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.87, BFH pays a bit more dividend than its industry peers.
BFH's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.18%

5.2 History

The dividend of BFH decreases each year by -18.26%.
BFH has been paying a dividend for over 5 years, so it has already some track record.
The dividend of BFH decreased in the last 3 years.
Dividend Growth(5Y)-18.26%
Div Incr Years1
Div Non Decr Years2

5.3 Sustainability

BFH pays out 5.86% of its income as dividend. This is a sustainable payout ratio.
BFH's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP5.86%
EPS Next 2Y-22.93%
EPS Next 3Y-13.24%

BREAD FINANCIAL HOLDINGS INC

NYSE:BFH (3/28/2024, 8:04:01 PM)

After market: 37.24 0 (0%)

37.24

-0.38 (-1.01%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.84B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.18%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 RankSector Rank
PE 2.53
Fwd PE 4.94
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)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.1%
ROE 24.57%
ROCE
ROIC
ROICexc
ROICexgc
OM 33.51%
PM (TTM) 14.8%
GM 91.14%
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 Turnover0.21
Health
Industry RankSector Rank
Debt/Equity 6.48
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.51
Quick Ratio 1.51
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)229.08%
EPS 3Y16.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y-48.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.9%
Revenue growth 3Y8.2%
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