BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
NYSE:BBWI - New York Stock Exchange, Inc. - US0708301041 - Common Stock
BBWI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 119 industry peers in the Specialty Retail industry. BBWI has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BBWI.
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.
Of the past 5 years BBWI 4 years were profitable.
Each year in the past 5 years BBWI had a positive operating cash flow.
1.2 Ratios
BBWI's Return On Assets of 18.54% is amongst the best of the industry. BBWI outperforms 96.55% of its industry peers.
BBWI's Return On Invested Capital of 30.50% is amongst the best of the industry. BBWI outperforms 96.55% 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 12.38%.
The 3 year average ROIC (28.79%) for BBWI is below the current ROIC(30.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.54% | ||
| ROE | N/A | ||
| ROIC | 30.5% |
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
BBWI has a Profit Margin of 12.43%. This is amongst the best in the industry. BBWI outperforms 94.83% of its industry peers.
In the last couple of years the Profit Margin of BBWI has grown nicely.
With an excellent Operating Margin value of 17.28%, BBWI belongs to the best of the industry, outperforming 93.97% of the companies in the same industry.
In the last couple of years the Operating Margin of BBWI has grown nicely.
BBWI has a better Gross Margin (43.99%) than 68.10% of its industry peers.
In the last couple of years the Gross Margin of BBWI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.28% | ||
| PM (TTM) | 12.43% | ||
| GM | 43.99% |
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
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
Compared to 1 year ago, BBWI has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BBWI is 6.53, which is on the high side as it means it would take BBWI, 6.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.53, BBWI is in line with its industry, outperforming 58.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | N/A |
ROIC/WACC2.94
WACC10.37%
2.3 Liquidity
BBWI has a Current Ratio of 1.09. This is a normal value and indicates that BBWI is financially healthy and should not expect problems in meeting its short term obligations.
BBWI's Current ratio of 1.09 is on the low side compared to the rest of the industry. BBWI is outperformed by 72.41% of its industry peers.
A Quick Ratio of 0.34 indicates that BBWI may have some problems paying its short term obligations.
BBWI has a worse Quick ratio (0.34) than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
BBWI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.49%.
BBWI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.93% yearly.
BBWI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.36%.
The Revenue for BBWI have been decreasing by -10.91% on average. This is quite bad
EPS 1Y (TTM)7.49%
EPS 3Y-1.48%
EPS 5Y2.93%
EPS Q2Q%2.08%
Revenue 1Y (TTM)0.36%
Revenue growth 3Y4.91%
Revenue growth 5Y-10.91%
Sales Q2Q%3.07%
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 9.16% yearly.
Based on estimates for the next years, BBWI will show a small growth in Revenue. The Revenue will grow by 2.37% on average per year.
EPS Next Y1.83%
EPS Next 2Y5.69%
EPS Next 3Y6.62%
EPS Next 5Y9.16%
Revenue Next Year-0.69%
Revenue Next 2Y0.98%
Revenue Next 3Y1.69%
Revenue Next 5Y2.37%
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
Based on the Price/Earnings ratio of 11.30, the valuation of BBWI can be described as reasonable.
Based on the Price/Earnings ratio, BBWI is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BBWI to the average of the S&P500 Index (28.29), we can say BBWI is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.21, the valuation of BBWI can be described as very reasonable.
82.76% of the companies in the same industry are more expensive than BBWI, based on the Price/Forward Earnings ratio.
BBWI is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.21 |
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 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.56 | ||
| EV/EBITDA | 7.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BBWI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BBWI may justify a higher PE ratio.
PEG (NY)6.16
PEG (5Y)3.85
EPS Next 2Y5.69%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.18%, BBWI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.27, BBWI pays a better dividend. On top of this BBWI pays more dividend than 85.34% of the companies listed in the same industry.
BBWI's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
The dividend of BBWI decreases each year by -19.69%.
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)-19.69%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
BBWI pays out 19.37% of its income as dividend. This is a sustainable payout ratio.
DP19.37%
EPS Next 2Y5.69%
EPS Next 3Y6.62%
BATH & BODY WORKS INC
NYSE:BBWI (1/21/2025, 8:04:01 PM)
After market: 37.29 0 (0%)37.29
+0.54 (+1.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.26%
Inst Owner Change-0.51%
Ins Owners0.25%
Ins Owner Change-0.38%
Market Cap8.08B
Analysts76
Price Target45.63 (22.37%)
Short Float %3.01%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend0.8
Dividend Growth(5Y)-19.69%
DP19.37%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.03%
Min EPS beat(2)1.56%
Max EPS beat(2)2.51%
EPS beat(4)4
Avg EPS beat(4)5.81%
Min EPS beat(4)1.56%
Max EPS beat(4)11.29%
EPS beat(8)8
Avg EPS beat(8)14.21%
EPS beat(12)11
Avg EPS beat(12)20.43%
EPS beat(16)15
Avg EPS beat(16)22.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)0.59%
Revenue beat(8)2
Avg Revenue beat(8)-1.01%
Revenue beat(12)3
Avg Revenue beat(12)-0.87%
Revenue beat(16)5
Avg Revenue beat(16)-6.54%
PT rev (1m)2.92%
PT rev (3m)3.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.25%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.21 | ||
| P/S | 1.09 | ||
| P/FCF | 12.56 | ||
| P/OCF | 9.42 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.65 |
EPS(TTM)3.3
EY8.85%
EPS(NY)3.65
Fwd EY9.8%
FCF(TTM)2.97
FCFY7.96%
OCF(TTM)3.96
OCFY10.61%
SpS34.32
BVpS-8.07
TBVpS-11.73
PEG (NY)6.16
PEG (5Y)3.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.54% | ||
| ROE | N/A | ||
| ROCE | 37.67% | ||
| ROIC | 30.5% | ||
| ROICexc | 32.31% | ||
| ROICexgc | 42.88% | ||
| OM | 17.28% | ||
| PM (TTM) | 12.43% | ||
| GM | 43.99% | ||
| FCFM | 8.65% |
ROA(3y)17.58%
ROA(5y)11.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)28.79%
ROIC(5y)22.47%
ROICexc(3y)43.78%
ROICexc(5y)34.43%
ROICexgc(3y)60.49%
ROICexgc(5y)46.48%
ROCE(3y)35.55%
ROCE(5y)27.75%
ROICexcg growth 3Y9.2%
ROICexcg growth 5Y2.6%
ROICexc growth 3Y7.21%
ROICexc growth 5Y6.25%
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%
F-Score7
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.53 | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | 76.16% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.76% | ||
| Profit Quality | 69.59% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | N/A |
F-Score7
WACC10.37%
ROIC/WACC2.94
Cap/Depr(3y)111.19%
Cap/Depr(5y)91.05%
Cap/Sales(3y)3.93%
Cap/Sales(5y)4.76%
Profit Quality(3y)89.46%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.49%
EPS 3Y-1.48%
EPS 5Y2.93%
EPS Q2Q%2.08%
EPS Next Y1.83%
EPS Next 2Y5.69%
EPS Next 3Y6.62%
EPS Next 5Y9.16%
Revenue 1Y (TTM)0.36%
Revenue growth 3Y4.91%
Revenue growth 5Y-10.91%
Sales Q2Q%3.07%
Revenue Next Year-0.69%
Revenue Next 2Y0.98%
Revenue Next 3Y1.69%
Revenue Next 5Y2.37%
EBIT growth 1Y3.38%
EBIT growth 3Y-7.7%
EBIT growth 5Y-2.21%
EBIT Next Year24.15%
EBIT Next 3Y9.96%
EBIT Next 5Y7.98%
FCF growth 1Y-22.62%
FCF growth 3Y-28.72%
FCF growth 5Y-2.59%
OCF growth 1Y-22.93%
OCF growth 3Y-22.37%
OCF growth 5Y-7.08%