BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBWI - US0708301041 - Common Stock
18.83 USD
-0.18 (-0.95%)
18.87 USD
+0.04 (+0.21%)
We assign a fundamental rating of 6 out of 10 to BBWI. BBWI was compared to 122 industry peers in the Specialty Retail industry. BBWI scores excellent on profitability, but there are some minor concerns on its financial health. BBWI has a bad growth rate and is valued cheaply. BBWI also has an excellent dividend rating. These ratings could make BBWI a good candidate for value and dividend 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.
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
BBWI has a better Return On Assets (14.01%) than 90.98% of its industry peers.
With an excellent Return On Invested Capital value of 28.69%, BBWI belongs to the best of the industry, outperforming 95.90% of the companies in the same industry.
BBWI had an Average Return On Invested Capital over the past 3 years of 27.00%. This is significantly above the industry average of 11.71%.
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
With an excellent Profit Margin value of 9.51%, BBWI belongs to the best of the industry, outperforming 89.34% 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 (16.39%) is better than 93.44% of its industry peers.
BBWI's Operating Margin has declined in the last couple of years.
BBWI has a better Gross Margin (44.13%) than 68.85% 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.
The number of shares outstanding for BBWI has been reduced compared to 1 year ago.
BBWI has less shares outstanding than it did 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 2.21. 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 (2.21) 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.
BBWI's Debt to FCF ratio of 4.11 is fine compared to the rest of the industry. BBWI outperforms 69.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.21 |
ROIC/WACC2.95
WACC9.71%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BBWI should not have too much problems paying its short term obligations.
BBWI's Current ratio of 1.21 is in line compared to the rest of the industry. BBWI outperforms 42.62% of its industry peers.
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.
The Revenue has been growing slightly by 6.22% on average over the past years.
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
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.
The Revenue is expected to grow by 3.09% on average over the next years.
EPS Next Y5.56%
EPS Next 2Y6.77%
EPS Next 3Y-5.07%
EPS Next 5Y9.63%
Revenue Next Year2.19%
Revenue Next 2Y2.47%
Revenue Next 3Y-0.44%
Revenue Next 5Y3.09%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BBWI is valuated cheaply with a Price/Earnings ratio of 5.71.
Based on the Price/Earnings ratio, BBWI is valued cheaper than 95.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, BBWI is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.96, the valuation of BBWI can be described as very cheap.
Based on the Price/Forward Earnings ratio, BBWI is valued cheaper than 97.54% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. BBWI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 4.96 |
4.2 Price Multiples
86.07% of the companies in the same industry are more expensive than BBWI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BBWI is valued cheaper than 99.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.07 | ||
| EV/EBITDA | 5.14 |
4.3 Compensation for Growth
BBWI's 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.
BBWI's earnings are expected to decrease with -5.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.03
PEG (5Y)0.73
EPS Next 2Y6.77%
EPS Next 3Y-5.07%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 4.21%, which is a nice return.
In the last 3 months the price of BBWI has falen by -35.97%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.67, BBWI pays a better dividend. On top of this BBWI pays more dividend than 92.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, BBWI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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 2Y6.77%
EPS Next 3Y-5.07%
18.83
-0.18 (-0.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.79%
Inst Owner Change7.6%
Ins Owners0.35%
Ins Owner Change5.33%
Market Cap3.85B
Revenue(TTM)7.35B
Net Income(TTM)699.00M
Analysts74.29
Price Target22.49 (19.44%)
Short Float %6.57%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend0.8
Dividend Growth(5Y)-7.77%
DP24.18%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)-7.74%
PT rev (3m)-6.09%
EPS NQ rev (1m)-14.69%
EPS NQ rev (3m)-11.54%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-7.27%
Revenue NQ rev (3m)-7.4%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 4.96 | ||
| P/S | 0.52 | ||
| P/FCF | 4.07 | ||
| P/OCF | 3.27 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.14 |
EPS(TTM)3.3
EY17.53%
EPS(NY)3.8
Fwd EY20.16%
FCF(TTM)4.62
FCFY24.54%
OCF(TTM)5.76
OCFY30.61%
SpS35.92
BVpS-7.78
TBVpS-11.65
PEG (NY)1.03
PEG (5Y)0.73
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 | 2.21 |
F-Score6
WACC9.71%
ROIC/WACC2.95
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 Y5.56%
EPS Next 2Y6.77%
EPS Next 3Y-5.07%
EPS Next 5Y9.63%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%-0.99%
Revenue Next Year2.19%
Revenue Next 2Y2.47%
Revenue Next 3Y-0.44%
Revenue Next 5Y3.09%
EBIT growth 1Y-6.15%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year17.21%
EBIT Next 3Y-0.36%
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 of BATH & BODY WORKS INC (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.
Can you provide the PE and PB ratios for BBWI stock?
The Price/Earnings (PE) ratio for BATH & BODY WORKS INC (BBWI) is 5.71 and the Price/Book (PB) ratio is -2.42.
Is the dividend of BATH & BODY WORKS INC sustainable?
The dividend rating of BATH & BODY WORKS INC (BBWI) is 7 / 10 and the dividend payout ratio is 24.18%.