BATH & BODY WORKS INC (BBWI)
US0708301041 - Common Stock
We assign a fundamental rating of 6 out of 10 to BBWI. BBWI was compared to 123 industry peers in the Specialty Retail industry. While BBWI has a great profitability rating, there are some minor concerns on its financial health. BBWI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year BBWI was profitable.
BBWI had a positive operating cash flow in the past year.
Of the past 5 years BBWI 4 years were profitable.
BBWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BBWI's Return On Assets of 18.94% is amongst the best of the industry. BBWI outperforms 96.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.20%, BBWI belongs to the top of the industry, outperforming 97.52% 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 12.26%.
The 3 year average ROIC (28.79%) for BBWI is below the current ROIC(30.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.94% | ||
| ROE | N/A | ||
| ROIC | 30.2% |
ROA(3y)17.58%
ROA(5y)11.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)28.79%
ROIC(5y)22.47%
1.3 Margins
With an excellent Profit Margin value of 12.69%, BBWI belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
In the last couple of years the Profit Margin of BBWI has grown nicely.
BBWI has a Operating Margin of 17.43%. This is amongst the best in the industry. BBWI outperforms 94.21% of its industry peers.
BBWI's Operating Margin has improved in the last couple of years.
BBWI has a Gross Margin of 44.03%. This is in the better half of the industry: BBWI outperforms 67.77% of its industry peers.
BBWI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.43% | ||
| PM (TTM) | 12.69% | ||
| GM | 44.03% |
OM growth 3Y-12.02%
OM growth 5Y9.76%
PM growth 3Y-3.42%
PM growth 5Y19.42%
GM growth 3Y-3.26%
GM growth 5Y2.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BBWI is creating value.
The number of shares outstanding for BBWI has been reduced compared to 1 year ago.
The number of shares outstanding for BBWI has been reduced compared to 5 years ago.
The debt/assets ratio for BBWI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.45 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
BBWI's Altman-Z score of 2.45 is in line compared to the rest of the industry. BBWI outperforms 54.55% of its industry peers.
The Debt to FCF ratio of BBWI is 6.11, which is on the high side as it means it would take BBWI, 6.11 years of fcf income to pay off all of its debts.
BBWI has a Debt to FCF ratio of 6.11. This is comparable to the rest of the industry: BBWI outperforms 57.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.45 |
ROIC/WACC3.08
WACC9.82%
2.3 Liquidity
A Current Ratio of 1.11 indicates that BBWI should not have too much problems paying its short term obligations.
BBWI has a Current ratio of 1.11. This is in the lower half of the industry: BBWI underperforms 68.59% of its industry peers.
A Quick Ratio of 0.54 indicates that BBWI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.54, BBWI is in line with its industry, outperforming 52.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
BBWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.03%, which is quite good.
The Earnings Per Share has been growing slightly by 2.93% on average over the past years.
Looking at the last year, BBWI shows a decrease in Revenue. The Revenue has decreased by -0.85% in the last year.
The Revenue for BBWI have been decreasing by -10.91% on average. This is quite bad
EPS 1Y (TTM)10.03%
EPS 3Y-1.48%
EPS 5Y2.93%
EPS Q2Q%-7.5%
Revenue 1Y (TTM)-0.85%
Revenue growth 3Y4.91%
Revenue growth 5Y-10.91%
Sales Q2Q%-2.12%
3.2 Future
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.
The Revenue is expected to grow by 2.88% on average over the next years.
EPS Next Y-0.7%
EPS Next 2Y5.3%
EPS Next 3Y6.38%
EPS Next 5Y10.07%
Revenue Next Year-1.48%
Revenue Next 2Y0.63%
Revenue Next 3Y1.6%
Revenue Next 5Y2.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.35 indicates a reasonable valuation of BBWI.
BBWI's Price/Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 91.74% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. BBWI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.48, the valuation of BBWI can be described as reasonable.
Based on the Price/Forward Earnings ratio, BBWI is valued cheaply inside the industry as 89.26% of the companies are valued more expensively.
BBWI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 8.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBWI indicates a somewhat cheap valuation: BBWI is cheaper than 79.34% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBWI indicates a rather cheap valuation: BBWI is cheaper than 85.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
The excellent profitability rating of BBWI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.19
EPS Next 2Y5.3%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.62%, BBWI has a reasonable but not impressive dividend return.
BBWI's Dividend Yield is rather good when compared to the industry average which is at 3.09. BBWI pays more dividend than 88.43% of the companies in the same industry.
BBWI's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
The dividend of BBWI decreases each year by -19.69%.
BBWI has paid a dividend for at least 10 years, which is a reliable track record.
BBWI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-19.69%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
BBWI pays out 19.21% of its income as dividend. This is a sustainable payout ratio.
DP19.21%
EPS Next 2Y5.3%
EPS Next 3Y6.38%
BATH & BODY WORKS INC
NYSE:BBWI (11/21/2024, 8:14:18 PM)
After market: 30.9 +0.15 (+0.49%)30.75
+0.24 (+0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 8.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.94% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.43% | ||
| PM (TTM) | 12.69% | ||
| GM | 44.03% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.03%
EPS 3Y-1.48%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.85%
Revenue growth 3Y4.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y