NYSE:BBWI: good value for what you're paying.

Last update: Jul 15, 2024

Our stock screening tool has identified BATH & BODY WORKS INC (NYSE:BBWI) as an undervalued gem with strong fundamentals. NYSE:BBWI boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Assessing Valuation for NYSE:BBWI

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:BBWI scores a 7 out of 10:

The Price/Earnings ratio is 11.25, which indicates a very decent valuation of BBWI.
80.80% of the companies in the same industry are more expensive than BBWI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.16. BBWI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.77, which indicates a very decent valuation of BBWI.
81.60% of the companies in the same industry are more expensive than BBWI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.66, BBWI is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, BBWI is valued a bit cheaper than the industry average as 69.60% of the companies are valued more expensively.
BBWI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BBWI is cheaper than 77.60% of the companies in the same industry.
The excellent profitability rating of BBWI may justify a higher PE ratio.

Exploring NYSE:BBWI's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:BBWI, the assigned 8 is noteworthy for profitability:

BBWI's Return On Assets of 16.93% is amongst the best of the industry. BBWI outperforms 95.20% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.16%, BBWI belongs to the top of the industry, outperforming 93.60% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BBWI is significantly above the industry average of 13.71%.
BBWI has a Profit Margin of 11.92%. This is amongst the best in the industry. BBWI outperforms 95.20% of its industry peers.
In the last couple of years the Profit Margin of BBWI has grown nicely.
BBWI has a Operating Margin of 17.42%. This is amongst the best in the industry. BBWI outperforms 94.40% of its industry peers.
In the last couple of years the Operating Margin of BBWI has grown nicely.
BBWI's Gross Margin of 43.78% is fine compared to the rest of the industry. BBWI outperforms 67.20% of its industry peers.
In the last couple of years the Gross Margin of BBWI has grown nicely.

Health Assessment of NYSE:BBWI

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:BBWI, the assigned 5 reflects its health status:

BBWI has a better Quick ratio (0.90) than 69.60% of its industry peers.

Evaluating Growth: NYSE:BBWI

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:BBWI scores a 4 out of 10:

Based on estimates for the next years, BBWI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.07% on average per year.
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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of BBWI

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.