BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
76.68 USD
+0.07 (+0.09%)
75.83 USD
-0.85 (-1.11%)
BFH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 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
BFH had positive earnings in the past year.
BFH had a positive operating cash flow in the past year.
BFH had positive earnings in each of the past 5 years.
Each year in the past 5 years BFH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BFH (2.17%) is comparable to the rest of the industry.
BFH has a Return On Equity of 14.23%. This is comparable to the rest of the industry: BFH outperforms 60.00% of its industry peers.
BFH has a Return On Invested Capital (4.94%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BFH is significantly below the industry average of 12.59%.
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
With a Profit Margin value of 10.52%, BFH perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
In the last couple of years the Profit Margin of BFH has remained more or less at the same level.
With an excellent Operating Margin value of 32.03%, BFH belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
In the last couple of years the Operating Margin of BFH has remained more or less at the same level.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BFH is creating some value.
Compared to 1 year ago, BFH has less shares outstanding
Compared to 5 years ago, BFH has more shares outstanding
BFH has a better debt/assets ratio than last year.
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.
The Altman-Z score of BFH (0.95) is better than 63.64% of its industry peers.
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.
BFH has a Debt/Equity ratio of 5.22. This is a high value indicating a heavy dependency on external financing.
BFH has a Debt to Equity ratio of 5.22. This is in the lower half of the industry: BFH underperforms 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.53
WACC3.24%
2.3 Liquidity
BFH has a Current Ratio of 1.43. This is a normal value and indicates that BFH is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.43, BFH is doing good in the industry, outperforming 61.82% of the companies in the same industry.
BFH has a Quick Ratio of 1.43. This is a normal value and indicates that BFH is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.43, BFH is doing good in the industry, outperforming 61.82% of the companies in the same industry.
| 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.
Looking at the last year, BFH shows a decrease in Revenue. The Revenue has decreased by -5.66% in the last year.
The Revenue has been decreasing by -0.19% on average over the past years.
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.
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 Y36.39%
EPS Next 2Y14.94%
EPS Next 3Y16.56%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 7.82, the valuation of BFH can be described as very cheap.
BFH's Price/Earnings ratio is a bit cheaper when compared to the industry. BFH is cheaper than 69.09% of the companies in the same industry.
BFH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.50.
The Price/Forward Earnings ratio is 7.92, which 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 72.73% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.93. BFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 7.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BFH indicates a rather cheap valuation: BFH is cheaper than 85.45% of the companies listed in the same industry.
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 | 1.77 | ||
| EV/EBITDA | 2.32 |
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.
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 16.56% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y14.94%
EPS Next 3Y16.56%
5. Dividend
5.1 Amount
BFH has a Yearly Dividend Yield of 1.18%.
BFH's Dividend Yield is comparable with the industry average which is at 2.35.
Compared to the average S&P500 Dividend Yield of 1.87, BFH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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 2Y14.94%
EPS Next 3Y16.56%
76.68
+0.07 (+0.09%)
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 Cap3.50B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts71.43
Price TargetN/A
Short Float %11.84%
Short Ratio6.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)0.38%
PT rev (3m)0.06%
EPS NQ rev (1m)1.64%
EPS NQ rev (3m)6.85%
EPS NY rev (1m)2.52%
EPS NY rev (3m)25.89%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 7.92 | ||
| P/S | 0.78 | ||
| P/FCF | 1.77 | ||
| P/OCF | 1.75 | ||
| P/B | 1.06 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 2.32 |
EPS(TTM)9.81
EY12.79%
EPS(NY)9.68
Fwd EY12.63%
FCF(TTM)43.28
FCFY56.44%
OCF(TTM)43.87
OCFY57.21%
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
WACC3.24%
ROIC/WACC1.53
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 Y36.39%
EPS Next 2Y14.94%
EPS Next 3Y16.56%
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-64.1%
EBIT Next 3Y-28.27%
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%.