BATH & BODY WORKS INC (BBWI) Stock Fundamental Analysis
NYSE:BBWI - New York Stock Exchange, Inc. - US0708301041 - Common Stock - Currency: USD
Taking everything into account, BBWI scores 6 out of 10 in our fundamental rating. BBWI was compared to 121 industry peers in the Specialty Retail industry. BBWI has an excellent profitability rating, but there are some minor concerns on its financial health. BBWI is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
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
With an excellent Return On Assets value of 16.38%, BBWI belongs to the best of the industry, outperforming 94.21% of the companies in the same industry.
BBWI has a Return On Invested Capital of 28.45%. This is amongst the best in the industry. BBWI outperforms 94.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBWI is significantly above the industry average of 14.45%.
The last Return On Invested Capital (28.45%) for BBWI is above the 3 year average (27.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | N/A | ||
| ROIC | 28.45% |
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
Looking at the Profit Margin, with a value of 10.92%, BBWI belongs to the top of the industry, outperforming 92.56% of the companies in the same industry.
BBWI's Profit Margin has declined in the last couple of years.
BBWI's Operating Margin of 17.32% is amongst the best of the industry. BBWI outperforms 92.56% of its industry peers.
In the last couple of years the Operating Margin of BBWI has declined.
With a decent Gross Margin value of 44.24%, BBWI is doing good in the industry, outperforming 68.59% of the companies in the same industry.
BBWI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.32% | ||
| PM (TTM) | 10.92% | ||
| GM | 44.24% |
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.
The number of shares outstanding for BBWI has been reduced compared to 5 years ago.
Compared to 1 year ago, BBWI has an improved debt to assets ratio.
2.2 Solvency
BBWI has a debt to FCF ratio of 5.88. This is a neutral value as BBWI would need 5.88 years to pay back of all of its debts.
BBWI has a Debt to FCF ratio (5.88) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.88 | ||
| Altman-Z | N/A |
ROIC/WACC3.3
WACC8.63%
2.3 Liquidity
BBWI has a Current Ratio of 1.48. 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 1.48, BBWI is in line with its industry, outperforming 57.85% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that BBWI may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.88, BBWI is doing good in the industry, outperforming 69.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.83% over the past year.
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 -1.63% 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)1.83%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%1.46%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%-4.26%
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 9.76% yearly.
BBWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y10.28%
EPS Next 2Y10.47%
EPS Next 3Y7.52%
EPS Next 5Y9.76%
Revenue Next Year2.71%
Revenue Next 2Y2.87%
Revenue Next 3Y3.01%
Revenue Next 5Y3.59%
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.
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
BBWI is valuated reasonably with a Price/Earnings ratio of 8.53.
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.
Compared to an average S&P500 Price/Earnings ratio of 28.29, BBWI is valued rather cheaply.
A Price/Forward Earnings ratio of 7.74 indicates a rather cheap valuation of BBWI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBWI indicates a rather cheap valuation: BBWI is cheaper than 84.30% of the companies listed in the same industry.
BBWI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBWI is valued a bit cheaper than 71.90% 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 80.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.22 | ||
| EV/EBITDA | 6.01 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BBWI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.83
PEG (5Y)1.08
EPS Next 2Y10.47%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
BBWI has a Yearly Dividend Yield of 2.81%. Purely for dividend investing, there may be better candidates out there.
The stock price of BBWI dropped by -22.67% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 5.57, BBWI pays a better dividend. On top of this BBWI pays more dividend than 84.30% of the companies listed in the same industry.
BBWI's Dividend Yield is comparable with the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of BBWI decreases each year by -7.79%.
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)-7.79%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
22.18% of the earnings are spent on dividend by BBWI. This is a low number and sustainable payout ratio.
DP22.18%
EPS Next 2Y10.47%
EPS Next 3Y7.52%
28.42
+0.92 (+3.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.29%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change16.41%
Market Cap6.09B
Analysts80
Price Target47.38 (66.71%)
Short Float %2.79%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend0.8
Dividend Growth(5Y)-7.79%
DP22.18%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.35%
Min EPS beat(2)0.18%
Max EPS beat(2)2.51%
EPS beat(4)4
Avg EPS beat(4)3.88%
Min EPS beat(4)0.18%
Max EPS beat(4)11.29%
EPS beat(8)8
Avg EPS beat(8)12.67%
EPS beat(12)12
Avg EPS beat(12)20.5%
EPS beat(16)15
Avg EPS beat(16)22.41%
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-1.31%
Revenue beat(12)3
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)-3.81%
PT rev (1m)0.44%
PT rev (3m)3.84%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.83 | ||
| P/FCF | 9.22 | ||
| P/OCF | 6.87 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.01 |
EPS(TTM)3.33
EY11.72%
EPS(NY)3.67
Fwd EY12.92%
FCF(TTM)3.08
FCFY10.84%
OCF(TTM)4.14
OCFY14.55%
SpS34.11
BVpS-6.46
TBVpS-10.16
PEG (NY)0.83
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | N/A | ||
| ROCE | 34.77% | ||
| ROIC | 28.45% | ||
| ROICexc | 34.91% | ||
| ROICexgc | 47.64% | ||
| OM | 17.32% | ||
| PM (TTM) | 10.92% | ||
| GM | 44.24% | ||
| FCFM | 9.03% |
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-Score8
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.88 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 80.14% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.24% | ||
| Profit Quality | 82.71% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score8
WACC8.63%
ROIC/WACC3.3
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)1.83%
EPS 3Y-16.93%
EPS 5Y7.87%
EPS Q2Q%1.46%
EPS Next Y10.28%
EPS Next 2Y10.47%
EPS Next 3Y7.52%
EPS Next 5Y9.76%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y-2.49%
Revenue growth 5Y6.22%
Sales Q2Q%-4.26%
Revenue Next Year2.71%
Revenue Next 2Y2.87%
Revenue Next 3Y3.01%
Revenue Next 5Y3.59%
EBIT growth 1Y-1.56%
EBIT growth 3Y-14.27%
EBIT growth 5Y4.01%
EBIT Next Year22.59%
EBIT Next 3Y9.31%
EBIT Next 5Y8.57%
FCF growth 1Y0.61%
FCF growth 3Y-18.56%
FCF growth 5Y-3.24%
OCF growth 1Y-7.13%
OCF growth 3Y-15.95%
OCF growth 5Y-6.44%