BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBWI - US0708301041 - Common Stock
20.74 USD
+0.66 (+3.29%)
20.69 USD
-0.05 (-0.24%)
Overall BBWI gets a fundamental rating of 6 out of 10. We evaluated BBWI against 122 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. With these ratings, BBWI could be worth investigating further for value investing!.
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.
BBWI had positive earnings in each of the past 5 years.
BBWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BBWI's Return On Assets of 14.01% is amongst the best of the industry. BBWI outperforms 91.87% of its industry peers.
BBWI's Return On Invested Capital of 28.69% is amongst the best of the industry. BBWI outperforms 95.12% 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 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 Profit Margin of 9.51%. This is amongst the best in the industry. BBWI outperforms 88.62% of its industry peers.
BBWI's Profit Margin has declined in the last couple of years.
BBWI's Operating Margin of 16.39% is amongst the best of the industry. BBWI outperforms 93.50% of its industry peers.
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.
In the last couple of years the Gross Margin of BBWI has remained more or less at the same level.
| 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
BBWI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, BBWI has less shares outstanding
Compared to 5 years ago, BBWI has less shares outstanding
The debt/assets ratio for BBWI has been reduced compared to a year ago.
2.2 Solvency
BBWI has an Altman-Z score of 2.24. 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.
BBWI has a Altman-Z score (2.24) which is in line with its industry peers.
The Debt to FCF ratio of BBWI is 4.11, which is a neutral value as it means it would take BBWI, 4.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.11, BBWI is in the better half of 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 | 2.24 |
ROIC/WACC2.89
WACC9.92%
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.
Looking at the Current ratio, with a value of 1.21, BBWI is in line with its industry, outperforming 42.28% of the companies in the same 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.
BBWI has a Quick ratio (0.41) which is in line with 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.
The Earnings Per Share has been growing slightly by 7.87% on average over the past years.
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
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-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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BBWI is valuated cheaply with a Price/Earnings ratio of 6.28.
Compared to the rest of the industry, the Price/Earnings ratio of BBWI indicates a rather cheap valuation: BBWI is cheaper than 95.94% of the companies listed in the same industry.
BBWI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
BBWI is valuated cheaply with a Price/Forward Earnings ratio of 7.78.
Based on the Price/Forward Earnings ratio, BBWI is valued cheaper than 94.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.28 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
BBWI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBWI is cheaper than 86.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.49 | ||
| EV/EBITDA | 5.39 |
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 -3.46% in the coming years.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 3.98%.
BBWI's Dividend Yield is rather good when compared to the industry average which is at 2.20. BBWI pays more dividend than 88.62% of the companies in the same industry.
BBWI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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 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%
20.74
+0.66 (+3.29%)
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 Cap4.25B
Revenue(TTM)7.35B
Net Income(TTM)699.00M
Analysts74.29
Price Target22.58 (8.87%)
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 | 6.28 | ||
| Fwd PE | 7.78 | ||
| P/S | 0.58 | ||
| P/FCF | 4.49 | ||
| P/OCF | 3.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.39 |
EPS(TTM)3.3
EY15.91%
EPS(NY)2.67
Fwd EY12.85%
FCF(TTM)4.62
FCFY22.28%
OCF(TTM)5.76
OCFY27.79%
SpS35.92
BVpS-7.78
TBVpS-11.65
PEG (NY)N/A
PEG (5Y)0.8
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 | 2.24 |
F-Score6
WACC9.92%
ROIC/WACC2.89
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 6.28 and the Price/Book (PB) ratio is -2.67.
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 24.18%.