BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBWI - US0708301041 - Common Stock
22.04 USD
+1.81 (+8.95%)
21.5854 USD
-0.45 (-2.06%)
We assign a fundamental rating of 6 out of 10 to BBWI. BBWI was compared to 122 industry peers in the Specialty Retail industry. While BBWI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BBWI has a bad growth rate and is valued cheaply. With these ratings, BBWI could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
BBWI had positive earnings in the past year.
In the past year BBWI had a positive cash flow from operations.
In the past 5 years BBWI has always been profitable.
Each year in the past 5 years BBWI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.01%, BBWI belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
The Return On Invested Capital of BBWI (28.69%) is better than 95.08% of its industry peers.
BBWI had an Average Return On Invested Capital over the past 3 years of 27.00%. This is significantly above the industry average of 12.14%.
The last Return On Invested Capital (28.69%) for BBWI is above the 3 year average (27.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.01% | ||
| ROE | N/A | ||
| ROIC | 28.69% |
ROA(3y)15.67%
ROA(5y)15.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)27%
ROIC(5y)26.2%
1.3 Margins
Looking at the Profit Margin, with a value of 9.51%, BBWI belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
BBWI's Profit Margin has declined in the last couple of years.
BBWI has a Operating Margin of 16.39%. This is amongst the best in the industry. BBWI outperforms 93.44% of its industry peers.
BBWI's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 44.13%, BBWI is doing good in the industry, outperforming 68.03% of the companies in the same industry.
In the last couple of years the Gross Margin of BBWI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.39% | ||
| PM (TTM) | 9.51% | ||
| GM | 44.13% |
OM growth 3Y-12.07%
OM growth 5Y-2.08%
PM growth 3Y-13.56%
PM growth 5YN/A
GM growth 3Y-3.28%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BBWI is creating value.
The number of shares outstanding for BBWI has been reduced compared to 1 year ago.
Compared to 5 years ago, BBWI has less shares outstanding
The debt/assets ratio for BBWI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.24 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
BBWI has a Altman-Z score (2.24) which is comparable to the rest of the industry.
BBWI has a debt to FCF ratio of 4.11. This is a neutral value as BBWI would need 4.11 years to pay back of all of its debts.
BBWI's Debt to FCF ratio of 4.11 is fine compared to the rest of the industry. BBWI outperforms 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.24 |
ROIC/WACC2.89
WACC9.93%
2.3 Liquidity
BBWI has a Current Ratio of 1.21. This is a normal value and indicates that BBWI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.21, BBWI is in line with its industry, outperforming 42.62% of the companies in the same industry.
A Quick Ratio of 0.41 indicates that BBWI may have some problems paying its short term obligations.
BBWI has a Quick ratio (0.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
BBWI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
Measured over the past 5 years, BBWI shows a small growth in Earnings Per Share. The EPS has been growing by 7.87% on average per year.
BBWI shows a decrease in Revenue. In the last year, the revenue decreased by -1.05%.
Measured over the past years, BBWI shows a small growth in Revenue. The Revenue has been growing by 6.22% on average per year.
EPS 1Y (TTM)0%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%-0.99%
3.2 Future
The Earnings Per Share is expected to grow by 9.63% on average over the next years. This is quite good.
BBWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.09% yearly.
EPS Next Y-11.22%
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
EPS Next 5Y9.63%
Revenue Next Year-2.26%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.36%
Revenue Next 5Y3.09%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BBWI is valuated cheaply with a Price/Earnings ratio of 6.68.
95.90% 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 27.17. BBWI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.27 indicates a reasonable valuation of BBWI.
95.08% 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 23.79, BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 8.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBWI is valued cheaply inside the industry as 86.89% of the companies are valued more expensively.
BBWI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBWI is cheaper than 97.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.77 | ||
| EV/EBITDA | 5.31 |
4.3 Compensation for Growth
BBWI has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as BBWI's earnings are expected to decrease with -3.46% in the coming years.
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 3.98%.
Compared to an average industry Dividend Yield of 2.20, BBWI pays a better dividend. On top of this BBWI pays more dividend than 88.52% of the companies listed in the same industry.
BBWI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of BBWI decreases each year by -7.77%.
BBWI has been paying a dividend for at least 10 years, so it has a reliable track record.
BBWI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.77%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
24.18% of the earnings are spent on dividend by BBWI. This is a low number and sustainable payout ratio.
DP24.18%
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
22.04
+1.81 (+8.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.83%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change2.78%
Market Cap4.51B
Revenue(TTM)7.35B
Net Income(TTM)699.00M
Analysts74.29
Price Target22.58 (2.45%)
Short Float %5.82%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend0.8
Dividend Growth(5Y)-7.77%
DP24.18%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.21%
Min EPS beat(2)-13.05%
Max EPS beat(2)-3.37%
EPS beat(4)2
Avg EPS beat(4)-3.59%
Min EPS beat(4)-13.05%
Max EPS beat(4)1.86%
EPS beat(8)6
Avg EPS beat(8)1.11%
EPS beat(12)10
Avg EPS beat(12)8.28%
EPS beat(16)13
Avg EPS beat(16)14.43%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)-2.21%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)-1.48%
Revenue beat(8)1
Avg Revenue beat(8)-1.63%
Revenue beat(12)2
Avg Revenue beat(12)-1.5%
Revenue beat(16)3
Avg Revenue beat(16)-1.28%
PT rev (1m)-38.87%
PT rev (3m)-43.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.74%
EPS NY rev (1m)1.13%
EPS NY rev (3m)-16.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.98%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 8.27 | ||
| P/S | 0.61 | ||
| P/FCF | 4.77 | ||
| P/OCF | 3.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.31 |
EPS(TTM)3.3
EY14.97%
EPS(NY)2.67
Fwd EY12.09%
FCF(TTM)4.62
FCFY20.97%
OCF(TTM)5.76
OCFY26.15%
SpS35.92
BVpS-7.78
TBVpS-11.65
PEG (NY)N/A
PEG (5Y)0.85
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.01% | ||
| ROE | N/A | ||
| ROCE | 35.07% | ||
| ROIC | 28.69% | ||
| ROICexc | 30.81% | ||
| ROICexgc | 40.96% | ||
| OM | 16.39% | ||
| PM (TTM) | 9.51% | ||
| GM | 44.13% | ||
| FCFM | 12.86% |
ROA(3y)15.67%
ROA(5y)15.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)27%
ROIC(5y)26.2%
ROICexc(3y)35.99%
ROICexc(5y)39.04%
ROICexgc(3y)49.09%
ROICexgc(5y)53.22%
ROCE(3y)33%
ROCE(5y)32.02%
ROICexgc growth 3Y-17.12%
ROICexgc growth 5Y23.9%
ROICexc growth 3Y-16.34%
ROICexc growth 5Y20.74%
OM growth 3Y-12.07%
OM growth 5Y-2.08%
PM growth 3Y-13.56%
PM growth 5YN/A
GM growth 3Y-3.28%
GM growth 5Y0.04%
F-Score6
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 89.31% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.44% | ||
| Profit Quality | 135.34% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 2.24 |
F-Score6
WACC9.93%
ROIC/WACC2.89
Cap/Depr(3y)113.11%
Cap/Depr(5y)91.5%
Cap/Sales(3y)3.81%
Cap/Sales(5y)3.68%
Profit Quality(3y)86.47%
Profit Quality(5y)113.13%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%-28.57%
EPS Next Y-11.22%
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
EPS Next 5Y9.63%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%-0.99%
Revenue Next Year-2.26%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.36%
Revenue Next 5Y3.09%
EBIT growth 1Y-6.15%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year3.82%
EBIT Next 3Y0.49%
EBIT Next 5Y7.01%
FCF growth 1Y21.44%
FCF growth 3Y-18.56%
FCF growth 5Y-3.24%
OCF growth 1Y6.79%
OCF growth 3Y-15.95%
OCF growth 5Y-6.44%
BATH & BODY WORKS INC / BBWI FAQ
What is the ChartMill fundamental rating of BATH & BODY WORKS INC (BBWI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BBWI.
What is the valuation status for BBWI stock?
ChartMill assigns a valuation rating of 8 / 10 to BATH & BODY WORKS INC (BBWI). This can be considered as Undervalued.
How profitable is BATH & BODY WORKS INC (BBWI) stock?
BATH & BODY WORKS INC (BBWI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of BATH & BODY WORKS INC (BBWI) stock?
The Price/Earnings (PE) ratio for BATH & BODY WORKS INC (BBWI) is 6.68 and the Price/Book (PB) ratio is -2.83.
Can you provide the dividend sustainability for BBWI stock?
The dividend rating of BATH & BODY WORKS INC (BBWI) is 6 / 10 and the dividend payout ratio is 24.18%.