BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BFH • US0185811082
73.05 USD
+0.51 (+0.7%)
At close: Feb 2, 2026
73.3 USD
+0.25 (+0.34%)
After Hours: 2/2/2026, 7:48:57 PM
Overall BFH gets a fundamental rating of 5 out of 10. We evaluated BFH against 54 industry peers in the Consumer Finance industry. BFH has only an average score on both its financial health and profitability. BFH has a bad growth rate and is valued cheaply. These ratings would make BFH suitable for value investing!
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.
- Of the past 5 years BFH 4 years had a positive operating cash flow.
1.2 Ratios
- BFH has a Return On Assets (2.17%) which is in line with its industry peers.
- Looking at the Return On Equity, with a value of 14.23%, BFH is in line with its industry, outperforming 57.41% of the companies in the same industry.
- BFH has a Return On Invested Capital (5.23%) which is in line with its industry peers.
- BFH had an Average Return On Invested Capital over the past 3 years of 5.49%. This is significantly below the industry average of 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 14.23% | ||
| ROIC | 5.23% |
ROA(3y)2.2%
ROA(5y)2.23%
ROE(3y)16.42%
ROE(5y)19.5%
ROIC(3y)5.49%
ROIC(5y)4.88%
1.3 Margins
- BFH's Profit Margin of 10.52% is in line compared to the rest of the industry. BFH outperforms 48.15% of its industry peers.
- In the last couple of years the Profit Margin of BFH has grown nicely.
- Looking at the Operating Margin, with a value of 32.03%, BFH belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
- In the last couple of years the Operating Margin of BFH has grown nicely.
- The Gross Margin of BFH (92.67%) is better than 88.89% of its industry peers.
- BFH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.03% | ||
| PM (TTM) | 10.52% | ||
| GM | 92.67% |
OM growth 3Y20.69%
OM growth 5Y9.13%
PM growth 3Y30.78%
PM growth 5Y15.37%
GM growth 3Y0.41%
GM growth 5Y0.72%
2. Health
2.1 Basic Checks
- BFH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, BFH has less shares outstanding
- The number of shares outstanding for BFH has been reduced compared to 5 years ago.
- The debt/assets ratio for BFH has been reduced compared to a year ago.
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 62.96% 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.
- With a decent Debt to FCF ratio value of 8.77, BFH is doing good in the industry, outperforming 62.96% 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 worse Debt to Equity ratio (5.22) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.65
WACC3.16%
2.3 Liquidity
- A Current Ratio of 1.43 indicates that BFH should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.43, BFH is doing good in the industry, outperforming 61.11% of the companies in the same industry.
- A Quick Ratio of 1.43 indicates that BFH should not have too much problems paying its short term obligations.
- BFH has a better Quick ratio (1.43) than 61.11% 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 60.16% over the past year.
- Measured over the past 5 years, BFH shows a small growth in Earnings Per Share. The EPS has been growing by 4.61% on average per year.
- The Revenue has decreased by -3.14% in the past year.
- The Revenue has been growing slightly by 3.44% on average over the past years.
EPS 1Y (TTM)60.16%
EPS 3Y37.97%
EPS 5Y4.61%
EPS Q2Q%1378.57%
Revenue 1Y (TTM)-3.14%
Revenue growth 3Y1.27%
Revenue growth 5Y3.44%
Sales Q2Q%5.29%
3.2 Future
- The Earnings Per Share is expected to decrease by -9.75% on average over the next years.
- The Revenue is expected to grow by 2.15% on average over the next years.
EPS Next Y-18.81%
EPS Next 2Y-2.15%
EPS Next 3Y-17.61%
EPS Next 5Y-9.75%
Revenue Next Year3.51%
Revenue Next 2Y3.89%
Revenue Next 3Y4.33%
Revenue Next 5Y2.15%
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 decreasing.
- 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
- A Price/Earnings ratio of 6.22 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 72.22% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.41, BFH is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.66 indicates a rather cheap valuation of BFH.
- Based on the Price/Forward Earnings ratio, BFH is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, BFH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.22 | ||
| Fwd PE | 7.66 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BFH is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, BFH is valued cheaper than 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.69 | ||
| EV/EBITDA | 2.19 |
4.3 Compensation for Growth
- The decent profitability rating of BFH may justify a higher PE ratio.
- A cheap valuation may be justified as BFH's earnings are expected to decrease with -17.61% in the coming years.
PEG (NY)N/A
PEG (5Y)1.35
EPS Next 2Y-2.15%
EPS Next 3Y-17.61%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.27%, BFH has a reasonable but not impressive dividend return.
- BFH's Dividend Yield is comparable with the industry average which is at 2.68.
- Compared to the average S&P500 Dividend Yield of 1.83, BFH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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.
- The Dividend Rate of BFH has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP8.9%
EPS Next 2Y-2.15%
EPS Next 3Y-17.61%
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 7 / 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 decline by -18.81% 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%.