BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - NYSE:BFH - US0185811082 - Common Stock
63.95 USD
+1.37 (+2.19%)
63.95 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 only an average score on both its financial health and profitability. BFH is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BFH had positive earnings in the past year.
In the past year BFH had a positive cash flow from operations.
In the past 5 years BFH has always been profitable.
In the past 5 years BFH always reported a positive cash flow from operatings.
1.2 Ratios
BFH has a worse Return On Assets (1.31%) than 61.82% of its industry peers.
BFH has a Return On Equity (9.03%) which is comparable to the rest of the industry.
The Return On Invested Capital of BFH (4.40%) is better than 61.82% of its industry peers.
BFH had an Average Return On Invested Capital over the past 3 years of 4.40%. This is significantly below the industry average of 11.72%.
The 3 year average ROIC (4.40%) for BFH is below the current ROIC(4.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 9.03% | ||
| ROIC | 4.4% |
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's Profit Margin of 6.30% is in line compared to the rest of the industry. BFH outperforms 41.82% of its industry peers.
In the last couple of years the Profit Margin of BFH has remained more or less at the same level.
BFH has a better Operating Margin (28.36%) than 83.64% of its industry peers.
BFH's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 92.84%, BFH belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
BFH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.36% | ||
| PM (TTM) | 6.3% | ||
| GM | 92.84% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BFH is creating some value.
The number of shares outstanding for BFH has been reduced compared to 1 year ago.
Compared to 5 years ago, BFH has more shares outstanding
The debt/assets ratio for BFH has been reduced compared to a year ago.
2.2 Solvency
BFH has an Altman-Z score of 0.91. This is a bad value and indicates that BFH is not financially healthy and even has some risk of bankruptcy.
BFH has a Altman-Z score of 0.91. This is in the better half of the industry: BFH outperforms 61.82% of its industry peers.
The Debt to FCF ratio of BFH is 9.59, which is on the high side as it means it would take BFH, 9.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BFH (9.59) is comparable to the rest of the industry.
BFH has a Debt/Equity ratio of 5.55. This is a high value indicating a heavy dependency on external financing.
BFH has a Debt to Equity ratio of 5.55. This is in the lower half of the industry: BFH underperforms 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.55 | ||
| Debt/FCF | 9.59 | ||
| Altman-Z | 0.91 |
ROIC/WACC1.5
WACC2.93%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BFH should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.45, BFH is doing good in the industry, outperforming 65.45% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that BFH should not have too much problems paying its short term obligations.
BFH has a better Quick ratio (1.45) than 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
BFH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.26%, which is quite impressive.
The earnings per share for BFH have been decreasing by -15.20% on average. This is quite bad
Looking at the last year, BFH shows a decrease in Revenue. The Revenue has decreased by -5.66% in the last year.
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
The Earnings Per Share is expected to decrease by -1.18% on average over the next years.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y12.95%
EPS Next 2Y12.09%
EPS Next 3Y14.02%
EPS Next 5Y-1.18%
Revenue Next Year-1.17%
Revenue Next 2Y1.26%
Revenue Next 3Y2.73%
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
BFH is valuated cheaply with a Price/Earnings ratio of 6.52.
BFH's Price/Earnings ratio is a bit cheaper when compared to the industry. BFH is cheaper than 72.73% of the companies in the same industry.
BFH is valuated cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
BFH is valuated cheaply with a Price/Forward Earnings ratio of 6.94.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BFH indicates a somewhat cheap valuation: BFH is cheaper than 74.55% of the companies listed in the same industry.
BFH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
85.45% of the companies in the same industry are more expensive than BFH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BFH is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.63 | ||
| EV/EBITDA | 2.44 |
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.
BFH's earnings are expected to grow with 14.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y12.09%
EPS Next 3Y14.02%
5. Dividend
5.1 Amount
BFH has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.78, BFH has a dividend in line with its industry peers.
BFH's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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
15.03% of the earnings are spent on dividend by BFH. This is a low number and sustainable payout ratio.
BFH's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP15.03%
EPS Next 2Y12.09%
EPS Next 3Y14.02%
63.95
+1.37 (+2.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners107.16%
Inst Owner ChangeN/A
Ins Owners1.05%
Ins Owner Change2.01%
Market Cap2.98B
Revenue(TTM)4.49B
Net Income(TTM)286.00M
Analysts71
Price Target71.41 (11.67%)
Short Float %11.17%
Short Ratio7.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.87
Dividend Growth(5Y)-19.1%
DP15.03%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.77%
Min EPS beat(2)22.48%
Max EPS beat(2)55.06%
EPS beat(4)2
Avg EPS beat(4)4.11%
Min EPS beat(4)-58.34%
Max EPS beat(4)55.06%
EPS beat(8)5
Avg EPS beat(8)37.79%
EPS beat(12)9
Avg EPS beat(12)91.11%
EPS beat(16)10
Avg EPS beat(16)63.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)0.74%
Revenue beat(4)1
Avg Revenue beat(4)-1.82%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)0.74%
Revenue beat(8)4
Avg Revenue beat(8)1%
Revenue beat(12)7
Avg Revenue beat(12)5.1%
Revenue beat(16)9
Avg Revenue beat(16)3.07%
PT rev (1m)-0.32%
PT rev (3m)16.81%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)-2.47%
EPS NY rev (1m)1.94%
EPS NY rev (3m)16.16%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 6.94 | ||
| P/S | 0.66 | ||
| P/FCF | 1.63 | ||
| P/OCF | 1.61 | ||
| P/B | 0.94 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 2.44 |
EPS(TTM)9.81
EY15.34%
EPS(NY)9.21
Fwd EY14.4%
FCF(TTM)39.28
FCFY61.42%
OCF(TTM)39.75
OCFY62.16%
SpS97.3
BVpS67.88
TBVpS52.21
PEG (NY)0.5
PEG (5Y)N/A
Graham Number122.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 9.03% | ||
| ROCE | 15.18% | ||
| ROIC | 4.4% | ||
| ROICexc | 5.33% | ||
| ROICexgc | 6.01% | ||
| OM | 28.36% | ||
| PM (TTM) | 6.3% | ||
| GM | 92.84% | ||
| FCFM | 40.37% |
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 | 5.55 | ||
| Debt/FCF | 9.59 | ||
| Debt/EBITDA | 12.79 | ||
| Cap/Depr | 25.58% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 135.03% | ||
| Profit Quality | 640.56% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 0.91 |
F-Score6
WACC2.93%
ROIC/WACC1.5
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 Y12.95%
EPS Next 2Y12.09%
EPS Next 3Y14.02%
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-1.17%
Revenue Next 2Y1.26%
Revenue Next 3Y2.73%
Revenue Next 5Y3.25%
EBIT growth 1Y-16.81%
EBIT growth 3Y-2.32%
EBIT growth 5Y0.46%
EBIT Next Year-66.46%
EBIT Next 3Y-27.84%
EBIT Next 5YN/A
FCF growth 1Y1.55%
FCF growth 3Y7.71%
FCF growth 5Y11.13%
OCF growth 1Y0.43%
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 15.03%.