BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
NYSE:BFH - New York Stock Exchange, Inc. - US0185811082 - Common Stock - Currency: USD
Taking everything into account, BFH scores 5 out of 10 in our fundamental rating. BFH was compared to 53 industry peers in the Consumer Finance industry. BFH has an average financial health and profitability rating. BFH is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BFH had positive earnings in the past year.
In the past year BFH had a positive cash flow from operations.
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
BFH has a Return On Assets (1.25%) which is in line with its industry peers.
BFH's Return On Equity of 9.13% is in line compared to the rest of the industry. BFH outperforms 49.06% of its industry peers.
The Return On Invested Capital of BFH (4.36%) is better than 62.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BFH is significantly below the industry average of 10.47%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of BFH (6.11%) is worse than 60.38% of its industry peers.
In the last couple of years the Profit Margin of BFH has remained more or less at the same level.
With an excellent Operating Margin value of 28.52%, BFH belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
BFH's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 93.00%, BFH belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
In the last couple of years the Gross Margin of BFH has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BFH is still creating some value.
Compared to 1 year ago, BFH has less shares outstanding
Compared to 5 years ago, BFH has more shares outstanding
BFH has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 0.91, BFH is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
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 of 10.23. This is comparable to the rest of the industry: BFH outperforms 49.06% of its industry peers.
BFH has a Debt/Equity ratio of 5.94. This is a high value indicating a heavy dependency on external 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 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | 10.23 | ||
| Altman-Z | 0.91 |
ROIC/WACC1.56
WACC2.79%
2.3 Liquidity
A Current Ratio of 1.52 indicates that BFH should not have too much problems paying its short term obligations.
The Current ratio of BFH (1.52) is better than 60.38% of its industry peers.
A Quick Ratio of 1.52 indicates that BFH should not have too much problems paying its short term obligations.
BFH has a better Quick ratio (1.52) than 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for BFH have decreased strongly by -20.99% in the last year.
Measured over the past years, BFH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.20% on average per year.
BFH shows a decrease in Revenue. In the last year, the revenue decreased by -5.93%.
BFH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.19% yearly.
EPS 1Y (TTM)-20.99%
EPS 3Y-25.81%
EPS 5Y-15.2%
EPS Q2Q%10.15%
Revenue 1Y (TTM)-5.93%
Revenue growth 3Y8.3%
Revenue growth 5Y-0.19%
Sales Q2Q%-1.06%
3.2 Future
The Earnings Per Share is expected to decrease by -1.18% on average over the next years.
Based on estimates for the next years, BFH will show a small growth in Revenue. The Revenue will grow by 3.25% on average per year.
EPS Next Y-2.76%
EPS Next 2Y10.51%
EPS Next 3Y10.09%
EPS Next 5Y-1.18%
Revenue Next Year-0.79%
Revenue Next 2Y1.59%
Revenue Next 3Y2.91%
Revenue Next 5Y3.25%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.58, the valuation of BFH can be described as very cheap.
Based on the Price/Earnings ratio, BFH is valued a bit cheaper than 67.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, BFH is valued rather cheaply.
The Price/Forward Earnings ratio is 6.50, which indicates a rather cheap valuation of BFH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BFH indicates a somewhat cheap valuation: BFH is cheaper than 77.36% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BFH to the average of the S&P500 Index (34.04), we can say BFH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 6.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BFH is valued cheaper than 86.79% of the companies 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 88.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.52 | ||
| EV/EBITDA | 2.59 |
4.3 Compensation for Growth
The decent profitability rating of BFH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.51%
EPS Next 3Y10.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, BFH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.12, BFH has a dividend in line with its industry peers.
With a Dividend Yield of 1.37, BFH pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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
5.3 Sustainability
BFH pays out 15.71% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of BFH has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP15.71%
EPS Next 2Y10.51%
EPS Next 3Y10.09%
58.22
+0.39 (+0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners108.41%
Inst Owner ChangeN/A
Ins Owners0.99%
Ins Owner Change13.12%
Market Cap2.72B
Analysts69
Price Target61.13 (5%)
Short Float %8.41%
Short Ratio5.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend0.87
Dividend Growth(5Y)-19.1%
DP15.71%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)6.42%
PT rev (3m)-0.26%
EPS NQ rev (1m)4.2%
EPS NQ rev (3m)8.56%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 6.5 | ||
| P/S | 0.59 | ||
| P/FCF | 1.52 | ||
| P/OCF | 1.5 | ||
| P/B | 0.89 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 2.59 |
EPS(TTM)7.68
EY13.19%
EPS(NY)8.95
Fwd EY15.38%
FCF(TTM)38.19
FCFY65.59%
OCF(TTM)38.7
OCFY66.47%
SpS98.26
BVpS65.78
TBVpS49.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC2.79%
ROIC/WACC1.56
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)-20.99%
EPS 3Y-25.81%
EPS 5Y-15.2%
EPS Q2Q%10.15%
EPS Next Y-2.76%
EPS Next 2Y10.51%
EPS Next 3Y10.09%
EPS Next 5Y-1.18%
Revenue 1Y (TTM)-5.93%
Revenue growth 3Y8.3%
Revenue growth 5Y-0.19%
Sales Q2Q%-1.06%
Revenue Next Year-0.79%
Revenue Next 2Y1.59%
Revenue Next 3Y2.91%
Revenue Next 5Y3.25%
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%