In a market where value is scarce, NYSE:BBWI offers a refreshing opportunity with its solid fundamentals.

Our stock screener has singled out BATH & BODY WORKS INC (NYSE:BBWI) as a stellar value proposition. NYSE:BBWI not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Valuation Insights: NYSE:BBWI

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:BBWI was assigned a score of 7 for valuation:

• With a Price/Earnings ratio of 9.73, the valuation of BBWI can be described as very reasonable.
• Based on the Price/Earnings ratio, BBWI is valued cheaply inside the industry as 88.62% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of BBWI to the average of the S&P500 Index (30.00), we can say BBWI is valued rather cheaply.
• With a Price/Forward Earnings ratio of 8.57, the valuation of BBWI can be described as very reasonable.
• Based on the Price/Forward Earnings ratio, BBWI is valued cheaper than 88.62% of the companies in the same industry.
• BBWI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.62.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBWI indicates a somewhat cheap valuation: BBWI is cheaper than 75.61% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, BBWI is valued cheaper than 84.55% of the companies in the same industry.
• BBWI has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NYSE:BBWI

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:BBWI has earned a 8 out of 10:

• BBWI has a Return On Assets of 16.93%. This is amongst the best in the industry. BBWI outperforms 95.94% of its industry peers.
• The Return On Invested Capital of BBWI (26.16%) is better than 94.31% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for BBWI is significantly above the industry average of 12.46%.
• BBWI's Profit Margin of 11.92% is amongst the best of the industry. BBWI outperforms 95.94% of its industry peers.
• In the last couple of years the Profit Margin of BBWI has grown nicely.
• The Operating Margin of BBWI (17.42%) is better than 94.31% of its industry peers.
• BBWI's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 43.78%, BBWI is doing good in the industry, outperforming 68.29% of the companies in the same industry.
• In the last couple of years the Gross Margin of BBWI has grown nicely.

Health Assessment of NYSE:BBWI

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:BBWI has earned a 5 out of 10:

• BBWI has a Current ratio of 1.57. This is in the better half of the industry: BBWI outperforms 60.98% of its industry peers.
• BBWI's Quick ratio of 0.90 is fine compared to the rest of the industry. BBWI outperforms 71.54% of its industry peers.

Assessing Growth for NYSE:BBWI

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:BBWI has earned a 4 for growth:

• BBWI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.07% yearly.
• 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.

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

Check the latest full fundamental report of BBWI for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.