BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBWI - US0708301041 - Common Stock
19.72 USD
+0.47 (+2.44%)
19.719 USD
0 (-0.01%)
Taking everything into account, BBWI scores 5 out of 10 in our fundamental rating. BBWI was compared to 123 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 is cheap, but on the other hand it scores bad on growth. BBWI also has an excellent dividend rating.
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.
Each year in the past 5 years BBWI has been profitable.
BBWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BBWI has a better Return On Assets (14.01%) than 91.87% of its industry peers.
With an excellent Return On Invested Capital value of 28.69%, BBWI belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
BBWI had an Average Return On Invested Capital over the past 3 years of 27.00%. This is significantly above the industry average of 12.17%.
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
BBWI has a better Profit Margin (9.51%) than 88.62% of its industry peers.
BBWI's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 16.39%, BBWI belongs to the best of the industry, outperforming 93.50% of the companies in the same industry.
In the last couple of years the Operating Margin of BBWI has declined.
The Gross Margin of BBWI (44.13%) is better than 67.48% 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
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.
BBWI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BBWI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.23 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.23, BBWI is in line with its industry, outperforming 49.59% 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.
With a decent Debt to FCF ratio value of 4.11, BBWI is doing good in the industry, outperforming 69.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.23 |
ROIC/WACC2.91
WACC9.86%
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.
The Current ratio of BBWI (1.21) is comparable to the rest of the industry.
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.
With a Quick ratio value of 0.41, BBWI is not doing good in the industry: 60.16% of the companies in the same industry are doing better.
| 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.
The Revenue has been growing slightly by 6.22% on average over the past years.
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-12.21%
EPS Next 2Y-11.02%
EPS Next 3Y-4.21%
EPS Next 5Y9.63%
Revenue Next Year-2.34%
Revenue Next 2Y-2.19%
Revenue Next 3Y-0.58%
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
With a Price/Earnings ratio of 5.98, the valuation of BBWI can be described as very cheap.
Based on the Price/Earnings ratio, BBWI is valued cheaper than 96.75% 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 26.59.
BBWI is valuated cheaply with a Price/Forward Earnings ratio of 7.48.
BBWI's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 94.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BBWI to the average of the S&P500 Index (24.03), we can say BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 7.48 |
4.2 Price Multiples
86.99% of the companies in the same industry are more expensive than BBWI, based on the Enterprise Value to EBITDA ratio.
BBWI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBWI is cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.27 | ||
| EV/EBITDA | 5.24 |
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 -4.21% in the coming years.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y-11.02%
EPS Next 3Y-4.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.08%, BBWI is a good candidate for dividend investing.
The stock price of BBWI dropped by -26.03% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.98, BBWI pays a better dividend. On top of this BBWI pays more dividend than 89.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, BBWI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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
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-11.02%
EPS Next 3Y-4.21%
19.72
+0.47 (+2.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.79%
Inst Owner Change7.62%
Ins Owners0.35%
Ins Owner Change2.78%
Market Cap4.04B
Revenue(TTM)7.35B
Net Income(TTM)699.00M
Analysts74.29
Price TargetN/A
Short Float %6.29%
Short Ratio1.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Yearly Dividend0.8
Dividend Growth(5Y)-7.77%
DP24.18%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)-40.37%
PT rev (3m)-43.82%
EPS NQ rev (1m)-19.81%
EPS NQ rev (3m)-20.9%
EPS NY rev (1m)-16.83%
EPS NY rev (3m)-17.12%
Revenue NQ rev (1m)-8.47%
Revenue NQ rev (3m)-8.85%
Revenue NY rev (1m)-4.43%
Revenue NY rev (3m)-4.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 7.48 | ||
| P/S | 0.55 | ||
| P/FCF | 4.27 | ||
| P/OCF | 3.42 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.24 |
EPS(TTM)3.3
EY16.73%
EPS(NY)2.64
Fwd EY13.37%
FCF(TTM)4.62
FCFY23.43%
OCF(TTM)5.76
OCFY29.23%
SpS35.92
BVpS-7.78
TBVpS-11.65
PEG (NY)N/A
PEG (5Y)0.76
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 | 2.23 |
F-Score6
WACC9.86%
ROIC/WACC2.91
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-12.21%
EPS Next 2Y-11.02%
EPS Next 3Y-4.21%
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-2.34%
Revenue Next 2Y-2.19%
Revenue Next 3Y-0.58%
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 5 / 10 to BBWI.
What is the valuation status of BATH & BODY WORKS INC (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.
Can you provide the PE and PB ratios for BBWI stock?
The Price/Earnings (PE) ratio for BATH & BODY WORKS INC (BBWI) is 5.98 and the Price/Book (PB) ratio is -2.53.
Is the dividend of BATH & BODY WORKS INC sustainable?
The dividend rating of BATH & BODY WORKS INC (BBWI) is 7 / 10 and the dividend payout ratio is 24.18%.