BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
NYSE:BBWI - New York Stock Exchange, Inc. - US0708301041 - Common Stock - Currency: USD
BBWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. While BBWI has a great profitability rating, there are some minor concerns on its financial health. BBWI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes BBWI very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year BBWI was profitable.
BBWI had a positive operating cash flow in the past year.
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
The Return On Assets of BBWI (16.72%) is better than 94.21% of its industry peers.
BBWI's Return On Invested Capital of 29.38% is amongst the best of 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 13.07%.
The last Return On Invested Capital (29.38%) for BBWI is above the 3 year average (27.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | N/A | ||
| ROIC | 29.38% |
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 11.11%, BBWI belongs to the best of the industry, outperforming 91.74% of the companies in the same industry.
In the last couple of years the Profit Margin of BBWI has declined.
The Operating Margin of BBWI (17.53%) is better than 94.21% of its industry peers.
In the last couple of years the Operating Margin of BBWI has declined.
With a decent Gross Margin value of 44.55%, BBWI is doing good in the industry, outperforming 68.59% of the companies in the same industry.
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 | 17.53% | ||
| PM (TTM) | 11.11% | ||
| GM | 44.55% |
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.
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.
The debt/assets ratio for BBWI has been reduced compared to a year ago.
2.2 Solvency
BBWI has an Altman-Z score of 2.72. 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's Altman-Z score of 2.72 is fine compared to the rest of the industry. BBWI outperforms 61.98% of its industry peers.
The Debt to FCF ratio of BBWI is 4.98, which is a neutral value as it means it would take BBWI, 4.98 years of fcf income to pay off all of its debts.
BBWI has a Debt to FCF ratio of 4.98. This is in the better half of the industry: BBWI outperforms 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 2.72 |
ROIC/WACC3.05
WACC9.63%
2.3 Liquidity
BBWI has a Current Ratio of 1.41. This is a normal value and indicates that BBWI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.41, BBWI perfoms like the industry average, outperforming 55.37% of the companies in the same industry.
BBWI has a Quick Ratio of 1.41. 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 better Quick ratio (0.73) than 64.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
BBWI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.61%.
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 -0.94% in the last year.
The Revenue has been growing slightly by 6.22% on average over the past years.
EPS 1Y (TTM)3.61%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%28.95%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%2.89%
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 Y6.62%
EPS Next 2Y7.77%
EPS Next 3Y8.58%
EPS Next 5Y9.63%
Revenue Next Year2.39%
Revenue Next 2Y2.57%
Revenue Next 3Y2.43%
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
The Price/Earnings ratio is 9.55, which indicates a very decent valuation of BBWI.
BBWI's Price/Earnings ratio is rather cheap when compared to the industry. BBWI is cheaper than 87.60% 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 27.30.
A Price/Forward Earnings ratio of 8.49 indicates a reasonable valuation of BBWI.
Based on the Price/Forward Earnings ratio, BBWI is valued cheaply inside the industry as 87.60% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BBWI to the average of the S&P500 Index (21.76), we can say BBWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBWI is valued a bit cheaper than 76.03% of the companies in the same industry.
BBWI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBWI is cheaper than 85.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.96 | ||
| EV/EBITDA | 6.67 |
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)1.44
PEG (5Y)1.21
EPS Next 2Y7.77%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.99, BBWI pays a better dividend. On top of this BBWI pays more dividend than 85.12% of the companies listed in the same industry.
BBWI's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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 21.45% of its income as dividend. This is a sustainable payout ratio.
DP21.45%
EPS Next 2Y7.77%
EPS Next 3Y8.58%
32.84
-0.81 (-2.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.11%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change22.38%
Market Cap7.00B
Analysts80.91
Price Target41.93 (27.68%)
Short Float %3.58%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend0.8
Dividend Growth(5Y)-7.77%
DP21.45%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.02%
Min EPS beat(2)0.18%
Max EPS beat(2)1.86%
EPS beat(4)4
Avg EPS beat(4)1.53%
Min EPS beat(4)0.18%
Max EPS beat(4)2.51%
EPS beat(8)8
Avg EPS beat(8)9.66%
EPS beat(12)12
Avg EPS beat(12)19.06%
EPS beat(16)15
Avg EPS beat(16)22.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-1.93%
Max Revenue beat(2)-1.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-1.32%
Revenue beat(12)3
Avg Revenue beat(12)-1.01%
Revenue beat(16)5
Avg Revenue beat(16)-0.67%
PT rev (1m)0%
PT rev (3m)-11.5%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-14.97%
EPS NY rev (1m)-1.04%
EPS NY rev (3m)-3.32%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 8.49 | ||
| P/S | 0.95 | ||
| P/FCF | 8.96 | ||
| P/OCF | 7.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.67 |
EPS(TTM)3.44
EY10.48%
EPS(NY)3.87
Fwd EY11.78%
FCF(TTM)3.67
FCFY11.16%
OCF(TTM)4.69
OCFY14.27%
SpS34.49
BVpS-6.81
TBVpS-10.53
PEG (NY)1.44
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | N/A | ||
| ROCE | 35.91% | ||
| ROIC | 29.38% | ||
| ROICexc | 35.71% | ||
| ROICexgc | 48.83% | ||
| OM | 17.53% | ||
| PM (TTM) | 11.11% | ||
| GM | 44.55% | ||
| FCFM | 10.63% |
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 Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.98 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 78.91% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.85% | ||
| Profit Quality | 95.71% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.72 |
F-Score7
WACC9.63%
ROIC/WACC3.05
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)3.61%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%28.95%
EPS Next Y6.62%
EPS Next 2Y7.77%
EPS Next 3Y8.58%
EPS Next 5Y9.63%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%2.89%
Revenue Next Year2.39%
Revenue Next 2Y2.57%
Revenue Next 3Y2.43%
Revenue Next 5Y3.09%
EBIT growth 1Y-0.31%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year22.98%
EBIT Next 3Y9.24%
EBIT Next 5Y7.01%
FCF growth 1Y-1.01%
FCF growth 3Y-18.56%
FCF growth 5Y-3.24%
OCF growth 1Y-11.05%
OCF growth 3Y-15.95%
OCF growth 5Y-6.44%