BATH & BODY WORKS INC (BBWI)
US0708301041 - Common Stock
BBWI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. BBWI has an excellent profitability rating, but there are concerns on its financial health. BBWI is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years BBWI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.54%, BBWI belongs to the top of the industry, outperforming 96.69% of the companies in the same industry.
With an excellent Return On Invested Capital value of 30.50%, BBWI belongs to the best of the industry, outperforming 96.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BBWI is significantly above the industry average of 12.03%.
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 better Profit Margin (12.43%) than 95.04% of its industry peers.
BBWI's Profit Margin has improved in the last couple of years.
BBWI has a Operating Margin of 17.28%. This is amongst the best in the industry. BBWI outperforms 94.21% of its industry peers.
In the last couple of years the Operating Margin of BBWI has grown nicely.
BBWI has a Gross Margin of 43.99%. This is in the better half of the industry: BBWI outperforms 67.77% 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
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.
Compared to 5 years ago, BBWI has less shares outstanding
BBWI has a better debt/assets ratio than last year.
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.
BBWI has a Debt to FCF ratio (6.53) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | N/A |
ROIC/WACC2.94
WACC10.39%
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.
The Current ratio of BBWI (1.09) is worse than 71.07% of its industry peers.
BBWI has a Quick Ratio of 1.09. This is a bad value and indicates that BBWI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BBWI (0.34) is worse than 66.94% 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%.
Measured over the past 5 years, BBWI shows a small growth in Earnings Per Share. The EPS has been growing by 2.93% on average per year.
BBWI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.36%.
BBWI shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -10.91% yearly.
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.
BBWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.37% yearly.
EPS Next Y1.83%
EPS Next 2Y5.69%
EPS Next 3Y6.62%
EPS Next 5Y9.16%
Revenue Next Year-0.71%
Revenue Next 2Y0.98%
Revenue Next 3Y1.7%
Revenue Next 5Y2.37%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.90, the valuation of BBWI can be described as very reasonable.
BBWI's Price/Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 84.30% of the companies in the same industry.
When comparing the Price/Earnings ratio of BBWI to the average of the S&P500 Index (27.73), we can say BBWI is valued rather cheaply.
BBWI is valuated reasonably with a Price/Forward Earnings ratio of 10.75.
BBWI's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 82.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 10.75 |
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 73.55% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaply inside the industry as 80.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.23 | ||
| EV/EBITDA | 7.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BBWI may justify a higher PE ratio.
PEG (NY)6.49
PEG (5Y)4.06
EPS Next 2Y5.69%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 2.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, BBWI pays a better dividend. On top of this BBWI pays more dividend than 83.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BBWI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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
19.37% of the earnings are spent on dividend by BBWI. This is a low number and sustainable payout ratio.
DP19.37%
EPS Next 2Y5.69%
EPS Next 3Y6.62%
BATH & BODY WORKS INC
NYSE:BBWI (12/20/2024, 8:04:01 PM)
After market: 39.27 0 (0%)39.27
+0.69 (+1.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.26%
Inst Owner Change2.02%
Ins Owners0.25%
Ins Owner Change1.91%
Market Cap8.51B
Analysts74.4
Price Target44.33 (12.89%)
Short Float %3.59%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Dividend Growth(5Y)-19.69%
DP19.37%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)4.96%
PT rev (3m)-12.66%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)2.55%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)-3.25%
Revenue NQ rev (3m)-3.25%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 10.75 | ||
| P/S | 1.14 | ||
| P/FCF | 13.23 | ||
| P/OCF | 9.92 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.99 |
EPS(TTM)3.3
EY8.4%
EPS(NY)3.65
Fwd EY9.3%
FCF(TTM)2.97
FCFY7.56%
OCF(TTM)3.96
OCFY10.08%
SpS34.32
BVpS-8.07
TBVpS-11.73
PEG (NY)6.49
PEG (5Y)4.06
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
WACC10.39%
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-0.71%
Revenue Next 2Y0.98%
Revenue Next 3Y1.7%
Revenue Next 5Y2.37%
EBIT growth 1Y3.38%
EBIT growth 3Y-7.7%
EBIT growth 5Y-2.21%
EBIT Next Year22.96%
EBIT Next 3Y10.13%
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%