BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
74.03 USD
-0.58 (-0.78%)
74.03 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 valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BFH was profitable.
BFH had a positive operating cash flow in the past year.
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's Return On Assets of 2.17% is in line compared to the rest of the industry. BFH outperforms 58.18% of its industry peers.
With a Return On Equity value of 14.23%, BFH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for BFH is significantly below the industry average of 12.44%.
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.
BFH has a better Operating Margin (32.03%) than 87.27% of its industry peers.
In the last couple of years the Operating Margin of BFH has remained more or less at the same level.
BFH has a Gross Margin of 92.67%. This is amongst the best in the industry. BFH outperforms 89.09% 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 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
Compared to 5 years ago, BFH has more shares outstanding
Compared to 1 year ago, BFH has an improved debt to assets ratio.
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.
With a decent Altman-Z score value of 0.95, BFH is doing good in the industry, outperforming 63.64% 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.
BFH's Debt to FCF ratio of 8.77 is fine compared to the rest of the industry. BFH outperforms 61.82% 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.
BFH's Debt to Equity ratio of 5.22 is on the low side compared to the rest of the industry. BFH is outperformed by 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.56
WACC3.17%
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 Current ratio of 1.43. This is in the better half of the industry: BFH outperforms 61.82% of its industry peers.
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 61.82% 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
BFH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.18% yearly.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y35.58%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
EPS Next 5Y-1.18%
Revenue Next Year-1.53%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
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 7.55, which indicates a rather cheap valuation of BFH.
Compared to the rest of the industry, the Price/Earnings ratio of BFH indicates a somewhat cheap valuation: BFH is cheaper than 69.09% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BFH to the average of the S&P500 Index (26.51), we can say BFH is valued rather cheaply.
BFH is valuated cheaply with a Price/Forward Earnings ratio of 7.75.
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 23.13. BFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 7.75 |
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.
BFH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BFH is cheaper than 89.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.71 | ||
| EV/EBITDA | 2.26 |
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.
BFH's earnings are expected to grow with 15.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y14.17%
EPS Next 3Y15.43%
5. Dividend
5.1 Amount
BFH has a Yearly Dividend Yield of 1.20%.
BFH's Dividend Yield is comparable with the industry average which is at 2.59.
Compared to an average S&P500 Dividend Yield of 2.00, BFH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
The dividend of BFH decreases each year by -19.10%.
BFH has paid a dividend for at least 10 years, which is 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
8.90% 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.
DP8.9%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
74.03
-0.58 (-0.78%)
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 Change-0.25%
Market Cap3.38B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts71.43
Price Target73.74 (-0.39%)
Short Float %11.5%
Short Ratio6.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend0.87
Dividend Growth(5Y)-19.1%
DP8.9%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)2.87%
PT rev (3m)2.94%
EPS NQ rev (1m)5.26%
EPS NQ rev (3m)9.44%
EPS NY rev (1m)1.91%
EPS NY rev (3m)22.37%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 7.75 | ||
| P/S | 0.75 | ||
| P/FCF | 1.71 | ||
| P/OCF | 1.69 | ||
| P/B | 1.02 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 2.26 |
EPS(TTM)9.81
EY13.25%
EPS(NY)9.56
Fwd EY12.91%
FCF(TTM)43.28
FCFY58.46%
OCF(TTM)43.87
OCFY59.26%
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
WACC3.17%
ROIC/WACC1.56
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 Y35.58%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
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-1.53%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
Revenue Next 5Y3.25%
EBIT growth 1Y4.51%
EBIT growth 3Y-2.32%
EBIT growth 5Y0.46%
EBIT Next Year-64.09%
EBIT Next 3Y-28.12%
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 of BREAD FINANCIAL HOLDINGS INC (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.
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 grow by 35.58% 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%.