BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
74.59 USD
+0.23 (+0.31%)
74.59 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BFH. BFH was compared to 55 industry peers in the Consumer Finance industry. BFH has an average financial health and profitability rating. BFH is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BFH was profitable.
BFH had a positive operating cash flow in the past year.
BFH had positive earnings in each of the past 5 years.
BFH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BFH has a Return On Assets (2.17%) which is comparable to the rest of the industry.
BFH has a Return On Equity of 14.23%. This is comparable to the rest of the industry: BFH outperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.94%, BFH is in line with its industry, outperforming 60.00% of the companies in the same industry.
BFH had an Average Return On Invested Capital over the past 3 years of 4.40%. This is significantly below the industry average of 12.59%.
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.
BFH's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 32.03%, BFH belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
BFH's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 92.67%, BFH belongs to the best 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
BFH has more shares outstanding than it did 5 years ago.
BFH has a better debt/assets ratio than last year.
2.2 Solvency
BFH has an Altman-Z score of 0.95. This is a bad value and indicates that BFH is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.95, BFH is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
The Debt to FCF ratio of BFH is 8.77, which is on the high side as it means it would take BFH, 8.77 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.77, BFH is doing good in the industry, outperforming 61.82% of the companies in the same industry.
BFH has a Debt/Equity ratio of 5.22. This is a high value indicating a heavy dependency on external financing.
BFH has a Debt to Equity ratio of 5.22. This is in the lower half of the industry: BFH underperforms 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.55
WACC3.18%
2.3 Liquidity
A Current Ratio of 1.43 indicates that BFH should not have too much problems paying its short term obligations.
BFH has a better Current ratio (1.43) than 61.82% of its industry peers.
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.
BFH has a Quick ratio of 1.43. This is in the better half of the industry: BFH outperforms 61.82% of its industry peers.
| 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 Y36.39%
EPS Next 2Y14.94%
EPS Next 3Y16.56%
EPS Next 5Y-1.18%
Revenue Next Year-1.32%
Revenue Next 2Y1.26%
Revenue Next 3Y2.46%
Revenue Next 5Y3.25%
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 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 7.60, which indicates a rather cheap valuation of BFH.
BFH's Price/Earnings ratio is a bit cheaper when compared to the industry. BFH is cheaper than 69.09% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. BFH is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.70 indicates a rather cheap valuation of BFH.
Based on the Price/Forward Earnings ratio, BFH is valued a bit cheaper than 74.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. BFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BFH is valued cheaper than 85.45% of the companies in the same industry.
89.09% of the companies in the same industry are more expensive than BFH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.72 | ||
| EV/EBITDA | 2.25 |
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.
The decent profitability rating of BFH may justify a higher PE ratio.
BFH's earnings are expected to grow with 16.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y14.94%
EPS Next 3Y16.56%
5. Dividend
5.1 Amount
BFH has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
BFH's Dividend Yield is comparable with the industry average which is at 5.09.
Compared to an average S&P500 Dividend Yield of 2.27, BFH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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 2Y14.94%
EPS Next 3Y16.56%
74.59
+0.23 (+0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners110.37%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner Change2.01%
Market Cap3.41B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts71.43
Price Target71.68 (-3.9%)
Short Float %11.95%
Short Ratio7.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend0.87
Dividend Growth(5Y)-19.1%
DP8.9%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)0.38%
PT rev (3m)0.61%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)4.27%
EPS NY rev (1m)2.52%
EPS NY rev (3m)25.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 7.7 | ||
| P/S | 0.76 | ||
| P/FCF | 1.72 | ||
| P/OCF | 1.7 | ||
| P/B | 1.03 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 2.25 |
EPS(TTM)9.81
EY13.15%
EPS(NY)9.68
Fwd EY12.98%
FCF(TTM)43.28
FCFY58.02%
OCF(TTM)43.87
OCFY58.81%
SpS98.27
BVpS72.65
TBVpS56.81
PEG (NY)0.21
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 | 0.95 |
F-Score6
WACC3.18%
ROIC/WACC1.55
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 Y36.39%
EPS Next 2Y14.94%
EPS Next 3Y16.56%
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-1.32%
Revenue Next 2Y1.26%
Revenue Next 3Y2.46%
Revenue Next 5Y3.25%
EBIT growth 1Y4.51%
EBIT growth 3Y-2.32%
EBIT growth 5Y0.46%
EBIT Next Year-64.1%
EBIT Next 3Y-28.27%
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 for BFH stock?
ChartMill assigns a valuation rating of 9 / 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.
Can you provide the financial health for BFH stock?
The financial health rating of BREAD FINANCIAL HOLDINGS INC (BFH) is 4 / 10.
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%.