BATH & BODY WORKS INC (BBWI) Fundamental Analysis & Valuation

NYSE:BBWI • US0708301041

Current stock price

16.8 USD
-1.03 (-5.78%)
At close:
16.8 USD
0 (0%)
After Hours:

This BBWI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. BBWI Profitability Analysis

1.1 Basic Checks

  • In the past year BBWI was profitable.
  • BBWI had a positive operating cash flow in the past year.
  • BBWI had positive earnings in each of the past 5 years.
  • In the past 5 years BBWI always reported a positive cash flow from operatings.
BBWI Yearly Net Income VS EBIT VS OCF VS FCFBBWI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500M 1B 1.5B 2B

1.2 Ratios

  • With an excellent Return On Assets value of 12.80%, BBWI belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
  • BBWI has a better Return On Invested Capital (24.80%) than 95.94% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for BBWI is significantly above the industry average of 13.16%.
Industry RankSector Rank
ROA 12.8%
ROE N/A
ROIC 24.8%
ROA(3y)15.08%
ROA(5y)16.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.9%
ROIC(5y)26.41%
BBWI Yearly ROA, ROE, ROICBBWI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -100 -200 -300 -400

1.3 Margins

  • Looking at the Profit Margin, with a value of 8.90%, BBWI belongs to the top of the industry, outperforming 88.62% of the companies in the same industry.
  • BBWI's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 15.65%, BBWI belongs to the top of the industry, outperforming 94.31% of the companies in the same industry.
  • BBWI's Operating Margin has declined in the last couple of years.
  • BBWI's Gross Margin of 43.73% is fine compared to the rest of the industry. BBWI outperforms 65.85% of its industry peers.
  • BBWI's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 15.65%
PM (TTM) 8.9%
GM 43.73%
OM growth 3Y-4.5%
OM growth 5Y-8.99%
PM growth 3Y-5.6%
PM growth 5Y-7.46%
GM growth 3Y0.53%
GM growth 5Y-1.89%
BBWI Yearly Profit, Operating, Gross MarginsBBWI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 20 30 40

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5

2. BBWI Health Analysis

2.1 Basic Checks

  • BBWI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
BBWI Yearly Shares OutstandingBBWI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
BBWI Yearly Total Debt VS Total AssetsBBWI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 2.22 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • BBWI has a Altman-Z score of 2.22. This is comparable to the rest of the industry: BBWI outperforms 55.28% of its industry peers.
  • The Debt to FCF ratio of BBWI is 4.50, which is a neutral value as it means it would take BBWI, 4.50 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.50, BBWI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.5
Altman-Z 2.22
ROIC/WACC3.57
WACC6.95%
BBWI Yearly LT Debt VS Equity VS FCFBBWI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2B -2B 4B 6B

2.3 Liquidity

  • BBWI has a Current Ratio of 1.27. This is a normal value and indicates that BBWI is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.27, BBWI is in line with its industry, outperforming 50.41% of the companies in the same industry.
  • BBWI has a Quick Ratio of 1.27. This is a bad value and indicates that BBWI is not financially healthy enough and could expect problems in meeting its short term obligations.
  • BBWI has a Quick ratio of 0.83. This is in the better half of the industry: BBWI outperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.27
Quick Ratio 0.83
BBWI Yearly Current Assets VS Current LiabilitesBBWI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. BBWI Growth Analysis

3.1 Past

  • BBWI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.10%.
  • Measured over the past years, BBWI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.95% on average per year.
  • BBWI shows a decrease in Revenue. In the last year, the revenue decreased by -0.22%.
  • The Revenue has been growing slightly by 2.53% on average over the past years.
EPS 1Y (TTM)-2.1%
EPS 3Y-1.58%
EPS 5Y-0.95%
EPS Q2Q%-1.91%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y-1.2%
Revenue growth 5Y2.53%
Sales Q2Q%-2.3%

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 8.92% yearly.
  • BBWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y-19.77%
EPS Next 2Y-6.45%
EPS Next 3Y6.68%
EPS Next 5Y8.92%
Revenue Next Year-1.07%
Revenue Next 2Y0.55%
Revenue Next 3Y1.62%
Revenue Next 5Y2.25%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
BBWI Yearly Revenue VS EstimatesBBWI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
BBWI Yearly EPS VS EstimatesBBWI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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8

4. BBWI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 5.15, the valuation of BBWI can be described as very cheap.
  • 96.75% of the companies in the same industry are more expensive than BBWI, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 24.88, BBWI is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 6.42, the valuation of BBWI can be described as very cheap.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of BBWI indicates a rather cheap valuation: BBWI is cheaper than 94.31% of the companies listed 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 22.19.
Industry RankSector Rank
PE 5.15
Fwd PE 6.42
BBWI Price Earnings VS Forward Price EarningsBBWI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 88.62% of the companies listed in the same industry.
  • BBWI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBWI is cheaper than 94.31% of the companies in the same industry.
Industry RankSector Rank
P/FCF 3.91
EV/EBITDA 4.68
BBWI Per share dataBBWI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

4.3 Compensation for Growth

  • The decent profitability rating of BBWI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.45%
EPS Next 3Y6.68%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. BBWI Dividend Analysis

5.1 Amount

  • BBWI has a Yearly Dividend Yield of 3.94%.
  • Compared to an average industry Dividend Yield of 2.79, BBWI pays a better dividend. On top of this BBWI pays more dividend than 88.62% of the companies listed in the same industry.
  • BBWI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 3.94%

5.2 History

  • The dividend of BBWI is nicely growing with an annual growth rate of 21.78%!
  • 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)21.78%
Div Incr Years0
Div Non Decr Years4
BBWI Yearly Dividends per shareBBWI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • BBWI pays out 25.73% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of BBWI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.73%
EPS Next 2Y-6.45%
EPS Next 3Y6.68%
BBWI Yearly Income VS Free CF VS DividendBBWI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500M 1B 1.5B
BBWI Dividend Payout.BBWI Dividend Payout, showing the Payout Ratio.BBWI Dividend Payout.PayoutRetained Earnings

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BBWI Fundamentals: All Metrics, Ratios and Statistics

BATH & BODY WORKS INC

NYSE:BBWI (3/27/2026, 6:40:00 PM)

After market: 16.8 0 (0%)

16.8

-1.03 (-5.78%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)05-19
Inst Owners99.96%
Inst Owner Change-7.19%
Ins Owners0.35%
Ins Owner Change16.81%
Market Cap3.38B
Revenue(TTM)7.29B
Net Income(TTM)649.00M
Analysts72.38
Price Target25.68 (52.86%)
Short Float %7.1%
Short Ratio2.71
Dividend
Industry RankSector Rank
Dividend Yield 3.94%
Yearly Dividend0.8
Dividend Growth(5Y)21.78%
DP25.73%
Div Incr Years0
Div Non Decr Years4
Ex-Date02-20
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.12%
Min EPS beat(2)-13.05%
Max EPS beat(2)13.28%
EPS beat(4)2
Avg EPS beat(4)-0.32%
Min EPS beat(4)-13.05%
Max EPS beat(4)13.28%
EPS beat(8)6
Avg EPS beat(8)1.78%
EPS beat(12)10
Avg EPS beat(12)8.34%
EPS beat(16)14
Avg EPS beat(16)15.3%
Revenue beat(2)1
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)1.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)1.91%
Revenue beat(8)1
Avg Revenue beat(8)-1.47%
Revenue beat(12)2
Avg Revenue beat(12)-1.42%
Revenue beat(16)4
Avg Revenue beat(16)-1.1%
PT rev (1m)2.03%
PT rev (3m)14.17%
EPS NQ rev (1m)-4.41%
EPS NQ rev (3m)-3.89%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)1.68%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)1.4%
Valuation
Industry RankSector Rank
PE 5.15
Fwd PE 6.42
P/S 0.46
P/FCF 3.91
P/OCF 3.07
P/B N/A
P/tB N/A
EV/EBITDA 4.68
EPS(TTM)3.26
EY19.4%
EPS(NY)2.62
Fwd EY15.57%
FCF(TTM)4.3
FCFY25.6%
OCF(TTM)5.48
OCFY32.61%
SpS36.25
BVpS-6.37
TBVpS-10.31
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 12.8%
ROE N/A
ROCE 32.81%
ROIC 24.8%
ROICexc 34.16%
ROICexgc 49.81%
OM 15.65%
PM (TTM) 8.9%
GM 43.73%
FCFM 11.86%
ROA(3y)15.08%
ROA(5y)16.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.9%
ROIC(5y)26.41%
ROICexc(3y)32.77%
ROICexc(5y)37.9%
ROICexgc(3y)45.59%
ROICexgc(5y)52.78%
ROCE(3y)32.93%
ROCE(5y)34.93%
ROICexgc growth 3Y0.46%
ROICexgc growth 5Y9.21%
ROICexc growth 3Y-1.38%
ROICexc growth 5Y6.29%
OM growth 3Y-4.5%
OM growth 5Y-8.99%
PM growth 3Y-5.6%
PM growth 5Y-7.46%
GM growth 3Y0.53%
GM growth 5Y-1.89%
F-Score5
Asset Turnover1.44
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.5
Debt/EBITDA 2.59
Cap/Depr 93.31%
Cap/Sales 3.25%
Interest Coverage 4.34
Cash Conversion 79%
Profit Quality 133.28%
Current Ratio 1.27
Quick Ratio 0.83
Altman-Z 2.22
F-Score5
WACC6.95%
ROIC/WACC3.57
Cap/Depr(3y)94.74%
Cap/Depr(5y)101.41%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.62%
Profit Quality(3y)96.9%
Profit Quality(5y)96.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.1%
EPS 3Y-1.58%
EPS 5Y-0.95%
EPS Q2Q%-1.91%
EPS Next Y-19.77%
EPS Next 2Y-6.45%
EPS Next 3Y6.68%
EPS Next 5Y8.92%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y-1.2%
Revenue growth 5Y2.53%
Sales Q2Q%-2.3%
Revenue Next Year-1.07%
Revenue Next 2Y0.55%
Revenue Next 3Y1.62%
Revenue Next 5Y2.25%
EBIT growth 1Y-9.87%
EBIT growth 3Y-5.64%
EBIT growth 5Y-6.69%
EBIT Next Year15.44%
EBIT Next 3Y11.17%
EBIT Next 5Y8.99%
FCF growth 1Y31.06%
FCF growth 3Y1.96%
FCF growth 5Y-13.74%
OCF growth 1Y24.38%
OCF growth 3Y-1.24%
OCF growth 5Y-11.58%

BATH & BODY WORKS INC / BBWI Fundamental Analysis 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 5.15 and the Price/Book (PB) ratio is -2.64.


Can you provide the dividend sustainability for BBWI stock?

The dividend rating of BATH & BODY WORKS INC (BBWI) is 7 / 10 and the dividend payout ratio is 25.73%.