BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - NYSE:BFH - US0185811082 - Common Stock
64.06 USD
+2.24 (+3.62%)
64.06 USD
0 (0%)
Overall BFH gets a fundamental rating of 5 out of 10. We evaluated BFH against 54 industry peers in the Consumer Finance industry. Both the profitability and the financial health of BFH get a neutral evaluation. Nothing too spectacular is happening here. BFH has a bad growth rate and is valued cheaply.
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's Return On Assets of 1.31% is on the low side compared to the rest of the industry. BFH is outperformed by 61.11% of its industry peers.
With a Return On Equity value of 9.03%, BFH perfoms like the industry average, outperforming 46.30% of the companies in the same industry.
BFH has a Return On Invested Capital of 4.40%. This is in the better half of the industry: BFH outperforms 61.11% 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 11.02%.
The last Return On Invested Capital (4.40%) for BFH is above the 3 year average (4.40%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 6.30%. This is comparable to the rest of the industry: BFH outperforms 40.74% of 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 28.36%, BFH belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
BFH's Operating Margin has been stable in the last couple of years.
The Gross Margin of BFH (92.84%) is better than 87.04% of its industry peers.
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 | 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.
BFH has less shares outstanding than it did 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
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 (0.91) which is in line with its industry peers.
BFH has a debt to FCF ratio of 9.59. This is a negative value and a sign of low solvency as BFH would need 9.59 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.59, BFH is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 5.55 is on the high side and indicates that BFH has dependencies on debt financing.
With a Debt to Equity ratio value of 5.55, BFH is not doing good in the industry: 75.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.55 | ||
| Debt/FCF | 9.59 | ||
| Altman-Z | 0.91 |
ROIC/WACC1.5
WACC2.93%
2.3 Liquidity
BFH has a Current Ratio of 1.45. 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 better Current ratio (1.45) than 64.81% of its industry peers.
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 64.81% 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -20.99%.
BFH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.20% yearly.
Looking at the last year, BFH shows a decrease in Revenue. The Revenue has decreased by -5.93% in the last year.
BFH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.19% yearly.
EPS 1Y (TTM)-20.99%
EPS 3Y-25.81%
EPS 5Y-15.2%
EPS Q2Q%10.15%
Revenue 1Y (TTM)-5.93%
Revenue growth 3Y8.3%
Revenue growth 5Y-0.19%
Sales Q2Q%-1.06%
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.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y8.34%
EPS Next 2Y12.18%
EPS Next 3Y13.27%
EPS Next 5Y-1.18%
Revenue Next Year-0.94%
Revenue Next 2Y1.59%
Revenue Next 3Y2.89%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
BFH is valuated reasonably with a Price/Earnings ratio of 8.34.
Based on the Price/Earnings ratio, BFH is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
BFH is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.95 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 77.78% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BFH to the average of the S&P500 Index (22.88), we can say BFH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 6.95 |
4.2 Price Multiples
87.04% 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 90.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.63 | ||
| EV/EBITDA | 2.49 |
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 13.27% in the coming years.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y12.18%
EPS Next 3Y13.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, BFH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.46, BFH has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, BFH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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 15.03% 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.
DP15.03%
EPS Next 2Y12.18%
EPS Next 3Y13.27%
64.06
+2.24 (+3.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners108.7%
Inst Owner ChangeN/A
Ins Owners1.05%
Ins Owner Change2.02%
Market Cap2.99B
Analysts71
Price Target71.64 (11.83%)
Short Float %9.51%
Short Ratio7.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)2.93%
PT rev (3m)24.7%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-3.09%
EPS NY rev (1m)11.42%
EPS NY rev (3m)9.77%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-2.74%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 6.95 | ||
| P/S | 0.66 | ||
| P/FCF | 1.63 | ||
| P/OCF | 1.61 | ||
| P/B | 0.94 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 2.49 |
EPS(TTM)7.68
EY11.99%
EPS(NY)9.22
Fwd EY14.4%
FCF(TTM)39.28
FCFY61.32%
OCF(TTM)39.75
OCFY62.05%
SpS97.3
BVpS67.88
TBVpS52.21
PEG (NY)1
PEG (5Y)N/A
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%
ROICexcg growth 3Y3.7%
ROICexcg 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)-20.99%
EPS 3Y-25.81%
EPS 5Y-15.2%
EPS Q2Q%10.15%
EPS Next Y8.34%
EPS Next 2Y12.18%
EPS Next 3Y13.27%
EPS Next 5Y-1.18%
Revenue 1Y (TTM)-5.93%
Revenue growth 3Y8.3%
Revenue growth 5Y-0.19%
Sales Q2Q%-1.06%
Revenue Next Year-0.94%
Revenue Next 2Y1.59%
Revenue Next 3Y2.89%
Revenue Next 5Y3.25%
EBIT growth 1Y-16.81%
EBIT growth 3Y-2.32%
EBIT growth 5Y0.46%
EBIT Next Year-66.48%
EBIT Next 3Y-27.89%
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%