BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBWI - US0708301041 - Common Stock
23.205 USD
+0.43 (+1.91%)
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 has a great profitability rating, there are some minor concerns on its financial health. BBWI is valued quite cheap, but it does not seem to be growing. These ratings would make BBWI suitable 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.
In the past 5 years BBWI always reported a positive cash flow from operatings.
1.2 Ratios
BBWI has a better Return On Assets (14.01%) than 91.80% of its industry peers.
BBWI has a Return On Invested Capital of 28.69%. This is amongst the best in the industry. BBWI outperforms 95.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBWI is significantly above the industry average of 12.14%.
The 3 year average ROIC (27.00%) for BBWI is below the current ROIC(28.69%), indicating increased profibility in the last year.
| 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
BBWI has a Profit Margin of 9.51%. This is amongst the best in the industry. BBWI outperforms 88.52% of its industry peers.
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.
BBWI has a better Gross Margin (44.13%) than 68.03% of its industry peers.
BBWI's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
BBWI has an Altman-Z score of 2.28. This is not the best score and indicates that BBWI is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.28, BBWI is in line with its industry, outperforming 50.82% of the companies in the same 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 has a better Debt to FCF ratio (4.11) than 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.28 |
ROIC/WACC2.88
WACC9.97%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BBWI should not have too much problems paying its short term obligations.
BBWI's Current ratio of 1.21 is in line compared to the rest of the industry. BBWI outperforms 42.62% of its industry peers.
A Quick Ratio of 0.41 indicates that BBWI may have some problems paying its short term obligations.
BBWI's Quick ratio of 0.41 is in line compared to the rest of the industry. BBWI outperforms 40.98% of its industry peers.
| 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.
BBWI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.87% yearly.
Looking at the last year, BBWI shows a decrease in Revenue. The Revenue has decreased by -1.05% in the last year.
BBWI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.22% yearly.
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
Based on estimates for the next years, BBWI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.63% on average per year.
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
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.
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 7.03.
Based on the Price/Earnings ratio, BBWI is valued cheaply inside the industry as 95.90% of the companies are valued more expensively.
BBWI is valuated cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.71, which indicates a very decent valuation of BBWI.
Based on the Price/Forward Earnings ratio, BBWI is valued cheaper than 94.26% of the companies in the same industry.
BBWI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBWI indicates a rather cheap valuation: BBWI is cheaper than 85.25% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaply inside the industry as 97.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.02 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
The decent profitability rating of BBWI 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)0.89
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
BBWI's Dividend Yield is rather good when compared to the industry average which is at 2.20. BBWI pays more dividend than 88.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, BBWI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of BBWI decreases each year by -7.77%.
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)-7.77%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
BBWI pays out 24.18% of its income as dividend. This is a sustainable payout ratio.
DP24.18%
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
NYSE:BBWI (1/9/2026, 2:50:05 PM)
23.205
+0.43 (+1.91%)
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 Cap4.75B
Revenue(TTM)7.35B
Net Income(TTM)699.00M
Analysts74.29
Price Target22.58 (-2.69%)
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 | 7.03 | ||
| Fwd PE | 8.71 | ||
| P/S | 0.65 | ||
| P/FCF | 5.02 | ||
| P/OCF | 4.03 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.67 |
EPS(TTM)3.3
EY14.22%
EPS(NY)2.67
Fwd EY11.49%
FCF(TTM)4.62
FCFY19.91%
OCF(TTM)5.76
OCFY24.84%
SpS35.92
BVpS-7.78
TBVpS-11.65
PEG (NY)N/A
PEG (5Y)0.89
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 | 2.28 |
F-Score6
WACC9.97%
ROIC/WACC2.88
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 7.03 and the Price/Book (PB) ratio is -2.98.
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%.