BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
80.36 USD
-0.89 (-1.1%)
80.36 USD
0 (0%)
Taking everything into account, BFH scores 5 out of 10 in our fundamental rating. BFH was compared to 55 industry peers in the Consumer Finance industry. BFH has an average financial health and profitability rating. BFH has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year BFH was profitable.
In the past year BFH had a positive cash flow from operations.
BFH had positive earnings in each of the past 5 years.
In the past 5 years BFH always reported a positive cash flow from operatings.
1.2 Ratios
BFH has a Return On Assets (2.17%) which is in line with its industry peers.
BFH has a Return On Equity of 14.23%. This is comparable to the rest of the industry: BFH outperforms 58.18% of its industry peers.
BFH's Return On Invested Capital of 4.94% is in line compared to the rest of the industry. BFH outperforms 58.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BFH is significantly below the industry average of 12.42%.
The 3 year average ROIC (4.40%) for BFH is below the current ROIC(4.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 14.23% | ||
| ROIC | 4.94% |
ROA(3y)1.73%
ROA(5y)1.96%
ROE(3y)14.51%
ROE(5y)19.2%
ROIC(3y)4.4%
ROIC(5y)4.64%
1.3 Margins
BFH has a Profit Margin (10.52%) which is in line with its industry peers.
In the last couple of years the Profit Margin of BFH has remained more or less at the same level.
Looking at the Operating Margin, with a value of 32.03%, BFH belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
BFH's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 92.67%, BFH belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
In the last couple of years the Gross Margin of BFH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.03% | ||
| PM (TTM) | 10.52% | ||
| GM | 92.67% |
OM growth 3Y-9.81%
OM growth 5Y0.65%
PM growth 3Y-35.19%
PM growth 5Y0.78%
GM growth 3Y0.66%
GM growth 5Y0.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BFH is still creating some value.
Compared to 1 year ago, BFH has less shares outstanding
The number of shares outstanding for BFH has been increased compared to 5 years ago.
The debt/assets ratio for BFH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that BFH is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.96, BFH is doing good in the industry, outperforming 61.82% of the companies in the same industry.
BFH has a debt to FCF ratio of 8.77. This is a slightly negative value and a sign of low solvency as BFH would need 8.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.77, BFH is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 5.22 is on the high side and indicates that BFH has dependencies on debt financing.
BFH has a Debt to Equity ratio of 5.22. This is in the lower half of the industry: BFH underperforms 67.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.96 |
ROIC/WACC1.48
WACC3.34%
2.3 Liquidity
BFH has a Current Ratio of 1.43. This is a normal value and indicates that BFH is financially healthy and should not expect problems in meeting its short term obligations.
BFH has a Current ratio (1.43) which is comparable to the rest of the industry.
BFH has a Quick Ratio of 1.43. This is a normal value and indicates that BFH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BFH (1.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.26% over the past year.
BFH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.20% yearly.
BFH shows a decrease in Revenue. In the last year, the revenue decreased by -5.66%.
Measured over the past years, BFH shows a decrease in Revenue. The Revenue has been decreasing by -0.19% on average per year.
EPS 1Y (TTM)21.26%
EPS 3Y-25.81%
EPS 5Y-15.2%
EPS Q2Q%116.39%
Revenue 1Y (TTM)-5.66%
Revenue growth 3Y8.3%
Revenue growth 5Y-0.19%
Sales Q2Q%-1.22%
3.2 Future
Based on estimates for the next years, BFH will show a decrease in Earnings Per Share. The EPS will decrease by -1.18% on average per year.
BFH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
EPS Next Y35.58%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
EPS Next 5Y-1.18%
Revenue Next Year-1.53%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
Revenue Next 5Y3.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.19, which indicates a very decent valuation of BFH.
Based on the Price/Earnings ratio, BFH is valued a bit cheaper than 67.27% of the companies in the same industry.
BFH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.00.
Based on the Price/Forward Earnings ratio of 8.41, the valuation of BFH can be described as reasonable.
Based on the Price/Forward Earnings ratio, BFH is valued a bit cheaper than 67.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.70. BFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BFH is valued cheaply inside the industry as 85.45% of the companies are valued more expensively.
BFH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BFH is cheaper than 87.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.86 | ||
| EV/EBITDA | 2.46 |
4.3 Compensation for Growth
BFH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BFH may justify a higher PE ratio.
A more expensive valuation may be justified as BFH's earnings are expected to grow with 15.43% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y14.17%
EPS Next 3Y15.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, BFH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.93, BFH has a dividend in line with its industry peers.
BFH's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
The dividend of BFH decreases each year by -19.10%.
BFH has been paying a dividend for at least 10 years, so it has a reliable track record.
BFH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-19.1%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
BFH pays out 8.90% of its income as dividend. This is a sustainable payout ratio.
BFH's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP8.9%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
80.36
-0.89 (-1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners111.11%
Inst Owner ChangeN/A
Ins Owners1.06%
Ins Owner Change-0.25%
Market Cap3.67B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts71.43
Price Target73.74 (-8.24%)
Short Float %11.5%
Short Ratio6.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.87
Dividend Growth(5Y)-19.1%
DP8.9%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)71.88%
Min EPS beat(2)55.06%
Max EPS beat(2)88.7%
EPS beat(4)3
Avg EPS beat(4)26.97%
Min EPS beat(4)-58.34%
Max EPS beat(4)88.7%
EPS beat(8)5
Avg EPS beat(8)42.95%
EPS beat(12)9
Avg EPS beat(12)98.29%
EPS beat(16)10
Avg EPS beat(16)66.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)-0.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)0.74%
Revenue beat(8)3
Avg Revenue beat(8)-0.79%
Revenue beat(12)6
Avg Revenue beat(12)3.96%
Revenue beat(16)9
Avg Revenue beat(16)3.91%
PT rev (1m)2.87%
PT rev (3m)2.71%
EPS NQ rev (1m)5.26%
EPS NQ rev (3m)9.76%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)22.37%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 8.41 | ||
| P/S | 0.82 | ||
| P/FCF | 1.86 | ||
| P/OCF | 1.83 | ||
| P/B | 1.11 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 2.46 |
EPS(TTM)9.81
EY12.21%
EPS(NY)9.56
Fwd EY11.89%
FCF(TTM)43.28
FCFY53.85%
OCF(TTM)43.87
OCFY54.59%
SpS98.27
BVpS72.65
TBVpS56.81
PEG (NY)0.23
PEG (5Y)N/A
Graham Number126.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 14.23% | ||
| ROCE | 17.57% | ||
| ROIC | 4.94% | ||
| ROICexc | 5.98% | ||
| ROICexgc | 6.7% | ||
| OM | 32.03% | ||
| PM (TTM) | 10.52% | ||
| GM | 92.67% | ||
| FCFM | 44.04% |
ROA(3y)1.73%
ROA(5y)1.96%
ROE(3y)14.51%
ROE(5y)19.2%
ROIC(3y)4.4%
ROIC(5y)4.64%
ROICexc(3y)5.33%
ROICexc(5y)5.71%
ROICexgc(3y)5.64%
ROICexgc(5y)6.71%
ROCE(3y)16.5%
ROCE(5y)14.09%
ROICexgc growth 3Y3.7%
ROICexgc growth 5Y-10.26%
ROICexc growth 3Y3.14%
ROICexc growth 5Y-6.25%
OM growth 3Y-9.81%
OM growth 5Y0.65%
PM growth 3Y-35.19%
PM growth 5Y0.78%
GM growth 3Y0.66%
GM growth 5Y0.7%
F-Score6
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Debt/EBITDA | 11.4 | ||
| Cap/Depr | 32.53% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 131.78% | ||
| Profit Quality | 418.64% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 0.96 |
F-Score6
WACC3.34%
ROIC/WACC1.48
Cap/Depr(3y)47.19%
Cap/Depr(5y)47.85%
Cap/Sales(3y)1.11%
Cap/Sales(5y)1.41%
Profit Quality(3y)575.46%
Profit Quality(5y)552.61%
High Growth Momentum
Growth
EPS 1Y (TTM)21.26%
EPS 3Y-25.81%
EPS 5Y-15.2%
EPS Q2Q%116.39%
EPS Next Y35.58%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
EPS Next 5Y-1.18%
Revenue 1Y (TTM)-5.66%
Revenue growth 3Y8.3%
Revenue growth 5Y-0.19%
Sales Q2Q%-1.22%
Revenue Next Year-1.53%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
Revenue Next 5Y3.25%
EBIT growth 1Y4.51%
EBIT growth 3Y-2.32%
EBIT growth 5Y0.46%
EBIT Next Year-64.09%
EBIT Next 3Y-28.12%
EBIT Next 5YN/A
FCF growth 1Y8.27%
FCF growth 3Y7.71%
FCF growth 5Y11.13%
OCF growth 1Y7.28%
OCF growth 3Y6.41%
OCF growth 5Y8.83%
BREAD FINANCIAL HOLDINGS INC / BFH FAQ
Can you provide the ChartMill fundamental rating for BREAD FINANCIAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to BFH.
What is the valuation status of BREAD FINANCIAL HOLDINGS INC (BFH) stock?
ChartMill assigns a valuation rating of 8 / 10 to BREAD FINANCIAL HOLDINGS INC (BFH). This can be considered as Undervalued.
What is the profitability of BFH stock?
BREAD FINANCIAL HOLDINGS INC (BFH) has a profitability rating of 6 / 10.
What is the earnings growth outlook for BREAD FINANCIAL HOLDINGS INC?
The Earnings per Share (EPS) of BREAD FINANCIAL HOLDINGS INC (BFH) is expected to grow by 35.58% in the next year.
Can you provide the dividend sustainability for BFH stock?
The dividend rating of BREAD FINANCIAL HOLDINGS INC (BFH) is 4 / 10 and the dividend payout ratio is 8.9%.