BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - NYSE:BBWI - US0708301041 - Common Stock
26.46 USD
-0.75 (-2.76%)
26.63 USD
+0.17 (+0.64%)
Taking everything into account, BBWI scores 6 out of 10 in our fundamental rating. BBWI was compared to 121 industry peers in the Specialty Retail industry. BBWI scores excellent on profitability, but there are some minor 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
In the past year BBWI was profitable.
In the past year BBWI had a positive cash flow from operations.
In the past 5 years BBWI has always been profitable.
BBWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 15.12%, BBWI belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
BBWI has a Return On Invested Capital of 29.41%. This is amongst the best in the industry. BBWI outperforms 95.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBWI is significantly above the industry average of 12.11%.
The 3 year average ROIC (27.00%) for BBWI is below the current ROIC(29.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.12% | ||
| ROE | N/A | ||
| ROIC | 29.41% |
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 9.88%, BBWI belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
In the last couple of years the Profit Margin of BBWI has declined.
With an excellent Operating Margin value of 17.12%, BBWI belongs to the best of the industry, outperforming 94.21% of the companies in the same industry.
BBWI's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 44.60%, BBWI is doing good in the industry, outperforming 70.25% of the companies in the same industry.
BBWI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.12% | ||
| PM (TTM) | 9.88% | ||
| GM | 44.6% |
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.
BBWI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BBWI has been reduced compared to 5 years ago.
Compared to 1 year ago, BBWI has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BBWI is 4.97, which is a neutral value as it means it would take BBWI, 4.97 years of fcf income to pay off all of its debts.
BBWI has a Debt to FCF ratio of 4.97. This is in the better half of the industry: BBWI outperforms 64.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | N/A |
ROIC/WACC2.97
WACC9.9%
2.3 Liquidity
A Current Ratio of 1.31 indicates that BBWI should not have too much problems paying its short term obligations.
BBWI has a Current ratio (1.31) which is in line with its industry peers.
A Quick Ratio of 0.56 indicates that BBWI may have some problems paying its short term obligations.
BBWI's Quick ratio of 0.56 is in line compared to the rest of the industry. BBWI outperforms 57.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
BBWI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.56%.
Measured over the past 5 years, BBWI shows a small growth in Earnings Per Share. The EPS has been growing by 7.87% on average per year.
Looking at the last year, BBWI shows a decrease in Revenue. The Revenue has decreased by -0.19% 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)4.56%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%1.51%
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.
Based on estimates for the next years, BBWI will show a small growth in Revenue. The Revenue will grow by 3.09% on average per year.
EPS Next Y5.92%
EPS Next 2Y7.37%
EPS Next 3Y8.66%
EPS Next 5Y9.63%
Revenue Next Year2.24%
Revenue Next 2Y2.59%
Revenue Next 3Y2.61%
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
Based on the Price/Earnings ratio of 7.69, the valuation of BBWI can be described as very cheap.
Based on the Price/Earnings ratio, BBWI is valued cheaply inside the industry as 94.21% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.27, BBWI is valued rather cheaply.
A Price/Forward Earnings ratio of 6.89 indicates a rather cheap valuation of BBWI.
Based on the Price/Forward Earnings ratio, BBWI is valued cheaply inside the industry as 95.04% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BBWI to the average of the S&P500 Index (22.77), we can say BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 6.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBWI is valued cheaply inside the industry as 84.30% of the companies are valued more expensively.
BBWI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBWI is cheaper than 92.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.97 | ||
| EV/EBITDA | 5.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BBWI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.3
PEG (5Y)0.98
EPS Next 2Y7.37%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.21, BBWI pays a better dividend. On top of this BBWI pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, BBWI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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
BBWI pays out 23.63% of its income as dividend. This is a sustainable payout ratio.
DP23.63%
EPS Next 2Y7.37%
EPS Next 3Y8.66%
26.46
-0.75 (-2.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.81%
Inst Owner Change-3.84%
Ins Owners0.31%
Ins Owner Change6.61%
Market Cap5.46B
Analysts80.95
Price Target40.03 (51.28%)
Short Float %4.84%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend0.8
Dividend Growth(5Y)-7.77%
DP23.63%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.76%
Min EPS beat(2)-3.37%
Max EPS beat(2)1.86%
EPS beat(4)3
Avg EPS beat(4)0.3%
Min EPS beat(4)-3.37%
Max EPS beat(4)2.51%
EPS beat(8)7
Avg EPS beat(8)7%
EPS beat(12)11
Avg EPS beat(12)17.56%
EPS beat(16)14
Avg EPS beat(16)18.31%
Revenue beat(2)0
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-2.21%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.21%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)4
Avg Revenue beat(16)-0.82%
PT rev (1m)-0.58%
PT rev (3m)-4.54%
EPS NQ rev (1m)-10.99%
EPS NQ rev (3m)-12.14%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-1.69%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 6.89 | ||
| P/S | 0.74 | ||
| P/FCF | 6.97 | ||
| P/OCF | 5.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.97 |
EPS(TTM)3.44
EY13%
EPS(NY)3.84
Fwd EY14.51%
FCF(TTM)3.8
FCFY14.35%
OCF(TTM)4.85
OCFY18.35%
SpS35.74
BVpS-7.5
TBVpS-11.35
PEG (NY)1.3
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.12% | ||
| ROE | N/A | ||
| ROCE | 35.94% | ||
| ROIC | 29.41% | ||
| ROICexc | 32.81% | ||
| ROICexgc | 43.86% | ||
| OM | 17.12% | ||
| PM (TTM) | 9.88% | ||
| GM | 44.6% | ||
| FCFM | 10.62% |
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%
ROICexcg growth 3Y-17.12%
ROICexcg 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-Score7
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 81.34% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.42% | ||
| Profit Quality | 107.56% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | N/A |
F-Score7
WACC9.9%
ROIC/WACC2.97
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)4.56%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%0%
EPS Next Y5.92%
EPS Next 2Y7.37%
EPS Next 3Y8.66%
EPS Next 5Y9.63%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%1.51%
Revenue Next Year2.24%
Revenue Next 2Y2.59%
Revenue Next 3Y2.61%
Revenue Next 5Y3.09%
EBIT growth 1Y-1.94%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year21.11%
EBIT Next 3Y8.54%
EBIT Next 5Y7.01%
FCF growth 1Y-1.51%
FCF growth 3Y-18.56%
FCF growth 5Y-3.24%
OCF growth 1Y-12.19%
OCF growth 3Y-15.95%
OCF growth 5Y-6.44%