BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBWI - US0708301041 - Common Stock
21.65 USD
-1.62 (-6.96%)
21.69 USD
+0.04 (+0.18%)
Overall BBWI gets a fundamental rating of 6 out of 10. We evaluated BBWI against 121 industry peers in the Specialty Retail industry. BBWI scores excellent on profitability, but there are some minor concerns on its financial health. BBWI has a bad growth rate and is valued cheaply. This makes BBWI very considerable for value investing!
1. Profitability
1.1 Basic Checks
- BBWI had positive earnings in the past year.
- BBWI had a positive operating cash flow in the past year.
- Each year in the past 5 years BBWI has been profitable.
- Each year in the past 5 years BBWI had a positive operating cash flow.
1.2 Ratios
- BBWI has a Return On Assets of 14.01%. This is amongst the best in the industry. BBWI outperforms 91.74% of its industry peers.
- BBWI's Return On Invested Capital of 28.69% is amongst the best of the industry. BBWI outperforms 95.04% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BBWI is significantly above the industry average of 12.37%.
- 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
- With an excellent Profit Margin value of 9.51%, BBWI belongs to the best of the industry, outperforming 88.43% of the companies in the same industry.
- BBWI's Profit Margin has declined in the last couple of years.
- The Operating Margin of BBWI (16.39%) is better than 93.39% of its industry peers.
- BBWI's Operating Margin has declined in the last couple of years.
- BBWI has a better Gross Margin (44.13%) than 68.59% of its industry peers.
- 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.
- Compared to 1 year ago, BBWI has less shares outstanding
- 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 2.29 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of BBWI (2.29) is comparable to the rest of the industry.
- The Debt to FCF ratio of BBWI is 4.11, which is a neutral value as it means it would take BBWI, 4.11 years of fcf income to pay off all of its debts.
- BBWI's Debt to FCF ratio of 4.11 is fine compared to the rest of the industry. BBWI outperforms 69.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.29 |
ROIC/WACC2.87
WACC9.98%
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.
- BBWI has a Current ratio of 1.21. This is comparable to the rest of the industry: BBWI outperforms 42.98% of its industry peers.
- BBWI has a Quick Ratio of 1.21. This is a bad value and indicates that BBWI is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.41, BBWI is in line with its industry, outperforming 41.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
- The earnings per share for BBWI have decreased by 0.00% in the last year.
- The Earnings Per Share has been growing slightly by 7.87% on average over the past years.
- Looking at the last year, BBWI shows a decrease in Revenue. The Revenue has decreased by -1.05% in the last year.
- 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 6.91% on average over the next years.
- The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y-11.22%
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
EPS Next 5Y6.91%
Revenue Next Year-2.19%
Revenue Next 2Y-2.05%
Revenue Next 3Y-0.5%
Revenue Next 5Y1.22%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- With a Price/Earnings ratio of 6.56, the valuation of BBWI can be described as very cheap.
- Based on the Price/Earnings ratio, BBWI is valued cheaper than 95.87% 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 26.94.
- With a Price/Forward Earnings ratio of 8.12, the valuation of BBWI can be described as very reasonable.
- 92.56% of the companies in the same industry are more expensive than BBWI, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. BBWI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
- BBWI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBWI is cheaper than 84.30% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BBWI is valued cheaply inside the industry as 95.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
- BBWI has a very decent profitability rating, which may justify a higher PE ratio.
- BBWI's earnings are expected to decrease with -3.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
5. Dividend
5.1 Amount
- BBWI has a Yearly Dividend Yield of 3.42%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.08, BBWI pays a better dividend. On top of this BBWI pays more dividend than 89.26% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, BBWI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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%
21.65
-1.62 (-6.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-20 2025-11-20/bmo
Earnings (Next)05-19 2026-05-19
Inst Owners110.83%
Inst Owner Change0.5%
Ins Owners0.35%
Ins Owner Change2.78%
Market Cap4.43B
Revenue(TTM)7.35B
Net Income(TTM)699.00M
Analysts75
Price Target24.4 (12.7%)
Short Float %5.9%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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)8.5%
PT rev (3m)-39.04%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-21.53%
EPS NY rev (1m)1.13%
EPS NY rev (3m)-16.92%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-8.9%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-4.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 8.12 | ||
| P/S | 0.6 | ||
| P/FCF | 4.69 | ||
| P/OCF | 3.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.74 |
EPS(TTM)3.3
EY15.24%
EPS(NY)2.67
Fwd EY12.31%
FCF(TTM)4.62
FCFY21.34%
OCF(TTM)5.76
OCFY26.62%
SpS35.92
BVpS-7.78
TBVpS-11.65
PEG (NY)N/A
PEG (5Y)0.83
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 | 2.29 |
F-Score6
WACC9.98%
ROIC/WACC2.87
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 5Y6.91%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%-0.99%
Revenue Next Year-2.19%
Revenue Next 2Y-2.05%
Revenue Next 3Y-0.5%
Revenue Next 5Y1.22%
EBIT growth 1Y-6.15%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year3.82%
EBIT Next 3Y0.49%
EBIT Next 5Y4.98%
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 6.56 and the Price/Book (PB) ratio is -2.78.
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%.