BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBWI - US0708301041 - Common Stock
23.29 USD
+0.52 (+2.28%)
23.25 USD
-0.04 (-0.17%)
BBWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 valued quite cheap, but it does not seem to be growing. These ratings would make BBWI suitable 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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.01%, BBWI belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
BBWI has a better Return On Invested Capital (28.69%) than 95.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBWI is significantly above the industry average of 12.24%.
The 3 year average ROIC (27.00%) for BBWI is below the current ROIC(28.69%), indicating increased profibility in the last year.
| 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
The Profit Margin of BBWI (9.51%) is better than 88.52% 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 93.44% of its industry peers.
BBWI's Operating Margin has declined in the last couple of years.
The Gross Margin of BBWI (44.13%) is better than 68.03% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BBWI is creating value.
Compared to 1 year ago, BBWI has less shares outstanding
Compared to 5 years ago, BBWI has less shares outstanding
BBWI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.29 indicates that BBWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
BBWI has a Altman-Z score (2.29) which is comparable to the rest of the industry.
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.
BBWI's Debt to FCF ratio of 4.11 is fine compared to the rest of the industry. BBWI outperforms 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.29 |
ROIC/WACC2.87
WACC9.99%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BBWI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, BBWI perfoms like the industry average, outperforming 42.62% 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
BBWI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
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.
The Revenue has decreased by -1.05% in the past 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
BBWI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y-11.22%
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
EPS Next 5Y6.91%
Revenue Next Year-2.26%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.36%
Revenue Next 5Y1.22%
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 stable.
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 7.06, the valuation of BBWI can be described as very cheap.
Based on the Price/Earnings ratio, BBWI is valued cheaper than 95.90% of the companies in the same industry.
BBWI is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.74, the valuation of BBWI can be described as reasonable.
92.62% of the companies in the same industry are more expensive than BBWI, based on the Price/Forward Earnings ratio.
BBWI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
BBWI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBWI is cheaper than 86.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaper than 96.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.04 | ||
| EV/EBITDA | 5.74 |
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)0.9
EPS Next 2Y-10.54%
EPS Next 3Y-3.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.51%, BBWI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.13, BBWI pays a better dividend. On top of this BBWI pays more dividend than 88.52% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, BBWI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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-10.54%
EPS Next 3Y-3.46%
23.29
+0.52 (+2.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.83%
Inst Owner Change0.22%
Ins Owners0.35%
Ins Owner Change2.78%
Market Cap4.77B
Revenue(TTM)7.35B
Net Income(TTM)699.00M
Analysts75
Price Target22.58 (-3.05%)
Short Float %5.82%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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)0.38%
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 | 7.06 | ||
| Fwd PE | 8.74 | ||
| P/S | 0.65 | ||
| P/FCF | 5.04 | ||
| P/OCF | 4.04 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.74 |
EPS(TTM)3.3
EY14.17%
EPS(NY)2.67
Fwd EY11.44%
FCF(TTM)4.62
FCFY19.84%
OCF(TTM)5.76
OCFY24.75%
SpS35.92
BVpS-7.78
TBVpS-11.65
PEG (NY)N/A
PEG (5Y)0.9
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 | 2.29 |
F-Score6
WACC9.99%
ROIC/WACC2.87
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 5Y6.91%
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 5Y1.22%
EBIT growth 1Y-6.15%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year3.82%
EBIT Next 3Y0.49%
EBIT Next 5Y4.98%
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 7.06 and the Price/Book (PB) ratio is -2.99.
Can you provide the dividend sustainability for BBWI stock?
The dividend rating of BATH & BODY WORKS INC (BBWI) is 6 / 10 and the dividend payout ratio is 24.18%.