BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
NYSE:BFH - New York Stock Exchange, Inc. - US0185811082 - Common Stock - Currency: USD
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 valued quite cheap, but it does not seem to be growing.
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.
Each year in the past 5 years BFH has been profitable.
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.
With a Return On Equity value of 9.13%, BFH perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.36%, BFH is doing good in the industry, outperforming 61.54% 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 10.33%.
| 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
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.
BFH's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 28.52%, BFH belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
In the last couple of years the Operating Margin of BFH has remained more or less at the same level.
BFH has a Gross Margin of 93.00%. This is amongst the best in the industry. BFH outperforms 88.46% of its industry peers.
BFH's Gross Margin has been stable in the last couple of years.
| 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
The number of shares outstanding for BFH has been increased compared to 5 years ago.
Compared to 1 year ago, BFH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that BFH is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.90, BFH is doing good in the industry, outperforming 63.46% of the companies in the same industry.
The Debt to FCF ratio of BFH is 10.23, which is on the high side as it means it would take BFH, 10.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BFH (10.23) is comparable to the rest of the industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | 10.23 | ||
| Altman-Z | 0.9 |
ROIC/WACC1.66
WACC2.62%
2.3 Liquidity
A Current Ratio of 1.52 indicates that BFH should not have too much problems paying its short term obligations.
BFH has a Current ratio (1.52) which is comparable to the rest of the industry.
A Quick Ratio of 1.52 indicates that BFH should not have too much problems paying its short term obligations.
The Quick ratio of BFH (1.52) is comparable to the rest of the industry.
| 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 -11.04% 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 -4.58%.
The Revenue has been decreasing by -0.19% on average over the past years.
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
The Earnings Per Share is expected to decrease by -0.75% on average over the next years.
BFH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.35% yearly.
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.
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
With a Price/Earnings ratio of 7.07, the valuation of BFH can be described as very cheap.
Based on the Price/Earnings ratio, BFH is valued a bit cheaper than the industry average as 78.85% of the companies are valued more expensively.
BFH is valuated cheaply when we compare the Price/Earnings ratio to 26.53, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.75, the valuation of BFH can be described as very cheap.
BFH's Price/Forward Earnings ratio is rather cheap when compared to the industry. BFH is cheaper than 80.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. BFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 5.75 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.37 | ||
| EV/EBITDA | 2.36 |
4.3 Compensation for Growth
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 12.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.53%
EPS Next 3Y12.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, BFH has a reasonable but not impressive dividend return.
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 Rank | Sector 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
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%
NYSE:BFH (6/10/2025, 11:28:48 AM)
52.38
+1.17 (+2.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners102.44%
Inst Owner ChangeN/A
Ins Owners0.81%
Ins Owner Change11.38%
Market Cap2.44B
Analysts69
Price Target57.44 (9.66%)
Short Float %9.18%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)-6.27%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 5.75 | ||
| P/S | 0.53 | ||
| P/FCF | 1.37 | ||
| P/OCF | 1.35 | ||
| P/B | 0.79 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 2.36 |
EPS(TTM)7.41
EY14.15%
EPS(NY)9.12
Fwd EY17.41%
FCF(TTM)38.26
FCFY73.04%
OCF(TTM)38.78
OCFY74.03%
SpS98.45
BVpS65.91
TBVpS50.05
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 | 0.9 |
F-Score6
WACC2.62%
ROIC/WACC1.66
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%