NYSE:BBWI is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Aug 6, 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.

Valuation Analysis 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:

Based on the Price/Earnings ratio of 9.41, the valuation of BBWI can be described as reasonable.
Based on the Price/Earnings ratio, BBWI is valued cheaper than 87.20% of the companies in the same industry.
BBWI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.44.
A Price/Forward Earnings ratio of 8.19 indicates a reasonable valuation of BBWI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBWI indicates a rather cheap valuation: BBWI is cheaper than 87.20% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.90, BBWI is valued rather cheaply.
BBWI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BBWI is cheaper than 75.20% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaper than 80.80% of the companies in the same industry.
BBWI has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Assessment of NYSE:BBWI

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:BBWI has achieved a 8:

BBWI has a better Return On Assets (16.93%) than 95.20% of its industry peers.
BBWI has a better Return On Invested Capital (26.16%) than 93.60% of its industry peers.
BBWI had an Average Return On Invested Capital over the past 3 years of 28.79%. This is significantly above the industry average of 13.04%.
BBWI has a better Profit Margin (11.92%) than 95.20% of its industry peers.
BBWI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.42%, BBWI belongs to the best of the industry, outperforming 94.40% of the companies in the same industry.
In the last couple of years the Operating Margin of BBWI has grown nicely.
Looking at the Gross Margin, with a value of 43.78%, BBWI is in the better half of the industry, outperforming 67.20% of the companies in the same industry.
In the last couple of years the Gross Margin of BBWI has grown nicely.

Assessing Health for NYSE:BBWI

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:BBWI has achieved a 5 out of 10:

The Current ratio of BBWI (1.57) is better than 60.80% of its industry peers.
Looking at the Quick ratio, with a value of 0.90, BBWI is in the better half of the industry, outperforming 69.60% of the companies in the same industry.

Evaluating Growth: NYSE:BBWI

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:BBWI boasts a 4 out of 10:

The Earnings Per Share is expected to grow by 10.07% on average over the next years. This is quite good.
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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.