BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
67.73 USD
+0.27 (+0.4%)
67.73 USD
0 (0%)
Overall BFH gets a fundamental rating of 5 out of 10. We evaluated BFH against 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
In the past year BFH was profitable.
In the past year BFH had a positive cash flow from operations.
Each year in the past 5 years BFH has been profitable.
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 in line with its industry peers.
With a decent Return On Equity value of 14.23%, BFH is doing good in the industry, outperforming 61.82% of the companies in the same industry.
The Return On Invested Capital of BFH (4.94%) is comparable to the rest of the 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 11.33%.
The last Return On Invested Capital (4.94%) for BFH is above the 3 year average (4.40%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 10.52%, BFH perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
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.
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.
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 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
BFH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BFH has been reduced compared to 1 year ago.
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 0.94, we must say that BFH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BFH (0.94) is comparable to the rest of the 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.
BFH's Debt to FCF ratio of 8.77 is in line compared to the rest of the industry. BFH outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 5.22 is on the high side and indicates that BFH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.22, BFH is doing worse than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.94 |
ROIC/WACC1.64
WACC3.02%
2.3 Liquidity
A Current Ratio of 1.43 indicates that BFH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.43, BFH is in the better half of the industry, outperforming 61.82% 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's Quick ratio of 1.43 is fine compared to the rest 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
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.
BFH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.20% yearly.
The Revenue has decreased by -5.66% in the past year.
BFH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.19% yearly.
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.
Based on estimates for the next years, BFH will show a small growth in Revenue. The Revenue will grow by 3.25% on average per year.
EPS Next Y33.04%
EPS Next 2Y14.89%
EPS Next 3Y16.46%
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
A Price/Earnings ratio of 6.90 indicates a rather cheap valuation of BFH.
70.91% of the companies in the same industry are more expensive than BFH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BFH to the average of the S&P500 Index (26.31), we can say BFH is valued rather cheaply.
BFH is valuated cheaply with a Price/Forward Earnings ratio of 7.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BFH indicates a somewhat cheap valuation: BFH is cheaper than 76.36% of the companies listed in the same industry.
BFH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.9 | ||
| Fwd PE | 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.
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 | 1.6 | ||
| EV/EBITDA | 2.09 |
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.
BFH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BFH's earnings are expected to grow with 16.46% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y14.89%
EPS Next 3Y16.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, BFH has a reasonable but not impressive dividend return.
BFH's Dividend Yield is comparable with the industry average which is at 5.12.
With a Dividend Yield of 1.36, BFH pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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 2Y14.89%
EPS Next 3Y16.46%
67.73
+0.27 (+0.4%)
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 Cap3.09B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts70.48
Price Target71.68 (5.83%)
Short Float %11.42%
Short Ratio7.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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)-0.16%
PT rev (3m)2.99%
EPS NQ rev (1m)-5.83%
EPS NQ rev (3m)-0.67%
EPS NY rev (1m)17.79%
EPS NY rev (3m)22.8%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.9 | ||
| Fwd PE | 7 | ||
| P/S | 0.7 | ||
| P/FCF | 1.6 | ||
| P/OCF | 1.58 | ||
| P/B | 0.95 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 2.09 |
EPS(TTM)9.81
EY14.48%
EPS(NY)9.68
Fwd EY14.29%
FCF(TTM)42.37
FCFY62.55%
OCF(TTM)42.95
OCFY63.41%
SpS96.2
BVpS71.12
TBVpS55.62
PEG (NY)0.21
PEG (5Y)N/A
Graham Number125.29
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 | 0.94 |
F-Score6
WACC3.02%
ROIC/WACC1.64
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 Y33.04%
EPS Next 2Y14.89%
EPS Next 3Y16.46%
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-66.46%
EBIT Next 3Y-27.84%
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%.