BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
69.79 USD
-1.99 (-2.77%)
69.99 USD
+0.2 (+0.29%)
BFH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 industry peers in the Consumer Finance industry. BFH has only an average score on both its financial health and profitability. BFH scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In the past 5 years BFH has always been profitable.
In the past 5 years BFH always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.17%, BFH perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.23%, BFH is in line with its industry, outperforming 56.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.94%, BFH is in line with its industry, outperforming 56.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BFH is significantly below the industry average of 12.42%.
The 3 year average ROIC (4.40%) for BFH is below the current ROIC(4.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 14.23% | ||
| ROIC | 4.94% |
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
BFH has a Profit Margin (10.52%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BFH has remained more or less at the same level.
BFH has a better Operating Margin (32.03%) than 84.91% of its industry peers.
BFH's Operating Margin has been stable in the last couple of years.
BFH has a better Gross Margin (92.67%) than 90.57% of its industry peers.
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 | 32.03% | ||
| PM (TTM) | 10.52% | ||
| GM | 92.67% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BFH is creating some value.
The number of shares outstanding for BFH has been reduced compared to 1 year ago.
Compared to 5 years ago, BFH has more shares outstanding
BFH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that BFH is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.95, BFH is in the better half of the industry, outperforming 60.38% of the companies in the same industry.
BFH has a debt to FCF ratio of 8.77. This is a slightly negative value and a sign of low solvency as BFH would need 8.77 years to pay back of all of its debts.
BFH has a Debt to FCF ratio of 8.77. This is in the better half of the industry: BFH outperforms 62.26% of its industry peers.
BFH has a Debt/Equity ratio of 5.22. This is a high value indicating a heavy dependency on external financing.
BFH has a Debt to Equity ratio of 5.22. This is in the lower half of the industry: BFH underperforms 66.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.62
WACC3.06%
2.3 Liquidity
BFH has a Current Ratio of 1.43. 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 (1.43) than 60.38% of its industry peers.
BFH has a Quick Ratio of 1.43. This is a normal value and indicates that BFH is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.43, BFH is doing good in the industry, outperforming 60.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
BFH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.26%, which is quite impressive.
BFH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.20% yearly.
The Revenue has decreased by -5.66% in the past year.
BFH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.19% yearly.
EPS 1Y (TTM)21.26%
EPS 3Y-25.81%
EPS 5Y-15.2%
EPS Q2Q%116.39%
Revenue 1Y (TTM)-5.66%
Revenue growth 3Y8.3%
Revenue growth 5Y-0.19%
Sales Q2Q%-1.22%
3.2 Future
Based on estimates for the next years, BFH will show a small growth in Earnings Per Share. The EPS will grow by 1.22% on average per year.
BFH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.39% yearly.
EPS Next Y35.58%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
EPS Next 5Y1.22%
Revenue Next Year-1.53%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
Revenue Next 5Y1.39%
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.
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
The Price/Earnings ratio is 7.11, which indicates a rather cheap valuation of BFH.
Compared to the rest of the industry, the Price/Earnings ratio of BFH indicates a somewhat cheap valuation: BFH is cheaper than 67.92% of the companies listed in the same industry.
BFH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 7.30 indicates a rather cheap valuation of BFH.
Based on the Price/Forward Earnings ratio, BFH is valued a bit cheaper than 73.58% of the companies in the same industry.
BFH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 7.3 |
4.2 Price Multiples
BFH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BFH is cheaper than 84.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BFH is valued cheaply inside the industry as 86.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.61 | ||
| EV/EBITDA | 2.17 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BFH may justify a higher PE ratio.
A more expensive valuation may be justified as BFH's earnings are expected to grow with 15.43% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y14.17%
EPS Next 3Y15.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, BFH has a reasonable but not impressive dividend return.
BFH's Dividend Yield is comparable with the industry average which is at 2.60.
Compared to an average S&P500 Dividend Yield of 1.92, BFH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of BFH decreases each year by -19.10%.
BFH has paid a dividend for at least 10 years, which is 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
8.90% of the earnings are spent on dividend by BFH. This is a low number and sustainable payout ratio.
DP8.9%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
69.79
-1.99 (-2.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners111.11%
Inst Owner ChangeN/A
Ins Owners1.06%
Ins Owner Change-0.25%
Market Cap3.19B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts68.57
Price Target73.74 (5.66%)
Short Float %11.5%
Short Ratio6.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.87
Dividend Growth(5Y)-19.1%
DP8.9%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)71.88%
Min EPS beat(2)55.06%
Max EPS beat(2)88.7%
EPS beat(4)3
Avg EPS beat(4)26.97%
Min EPS beat(4)-58.34%
Max EPS beat(4)88.7%
EPS beat(8)5
Avg EPS beat(8)42.95%
EPS beat(12)9
Avg EPS beat(12)98.29%
EPS beat(16)10
Avg EPS beat(16)66.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)-0.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)0.74%
Revenue beat(8)3
Avg Revenue beat(8)-0.79%
Revenue beat(12)6
Avg Revenue beat(12)3.96%
Revenue beat(16)9
Avg Revenue beat(16)3.91%
PT rev (1m)2.87%
PT rev (3m)2.71%
EPS NQ rev (1m)5.26%
EPS NQ rev (3m)9.76%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)22.37%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 7.3 | ||
| P/S | 0.71 | ||
| P/FCF | 1.61 | ||
| P/OCF | 1.59 | ||
| P/B | 0.96 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 2.17 |
EPS(TTM)9.81
EY14.06%
EPS(NY)9.56
Fwd EY13.69%
FCF(TTM)43.28
FCFY62.01%
OCF(TTM)43.87
OCFY62.86%
SpS98.27
BVpS72.65
TBVpS56.81
PEG (NY)0.2
PEG (5Y)N/A
Graham Number126.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 14.23% | ||
| ROCE | 17.57% | ||
| ROIC | 4.94% | ||
| ROICexc | 5.98% | ||
| ROICexgc | 6.7% | ||
| OM | 32.03% | ||
| PM (TTM) | 10.52% | ||
| GM | 92.67% | ||
| FCFM | 44.04% |
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%
ROICexgc growth 3Y3.7%
ROICexgc 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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Debt/EBITDA | 11.4 | ||
| Cap/Depr | 32.53% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 131.78% | ||
| Profit Quality | 418.64% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 0.95 |
F-Score6
WACC3.06%
ROIC/WACC1.62
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)21.26%
EPS 3Y-25.81%
EPS 5Y-15.2%
EPS Q2Q%116.39%
EPS Next Y35.58%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
EPS Next 5Y1.22%
Revenue 1Y (TTM)-5.66%
Revenue growth 3Y8.3%
Revenue growth 5Y-0.19%
Sales Q2Q%-1.22%
Revenue Next Year-1.53%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
Revenue Next 5Y1.39%
EBIT growth 1Y4.51%
EBIT growth 3Y-2.32%
EBIT growth 5Y0.46%
EBIT Next Year-64.09%
EBIT Next 3Y-28.12%
EBIT Next 5YN/A
FCF growth 1Y8.27%
FCF growth 3Y7.71%
FCF growth 5Y11.13%
OCF growth 1Y7.28%
OCF growth 3Y6.41%
OCF growth 5Y8.83%
BREAD FINANCIAL HOLDINGS INC / BFH FAQ
Can you provide the ChartMill fundamental rating for BREAD FINANCIAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to BFH.
What is the valuation status of BREAD FINANCIAL HOLDINGS INC (BFH) stock?
ChartMill assigns a valuation rating of 9 / 10 to BREAD FINANCIAL HOLDINGS INC (BFH). This can be considered as Undervalued.
What is the profitability of BFH stock?
BREAD FINANCIAL HOLDINGS INC (BFH) has a profitability rating of 6 / 10.
What is the earnings growth outlook for BREAD FINANCIAL HOLDINGS INC?
The Earnings per Share (EPS) of BREAD FINANCIAL HOLDINGS INC (BFH) is expected to grow by 35.58% in the next year.
Can you provide the dividend sustainability for BFH stock?
The dividend rating of BREAD FINANCIAL HOLDINGS INC (BFH) is 4 / 10 and the dividend payout ratio is 8.9%.