BREAD FINANCIAL HOLDINGS INC (BFH) Fundamental Analysis & Valuation

NYSE:BFH • US0185811082

71.16 USD
-0.5 (-0.7%)
Last: Mar 13, 2026, 12:47 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This BFH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

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. This makes BFH very considerable for value investing!


Dividend Valuation Growth Profitability Health

6

1. BFH Profitability Analysis

1.1 Basic Checks

  • BFH had positive earnings in the past year.
  • BFH had a positive operating cash flow in the past year.
  • Each year in the past 5 years BFH has been profitable.
  • In the past 5 years BFH always reported a positive cash flow from operatings.
BFH Yearly Net Income VS EBIT VS OCF VS FCFBFH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • BFH has a Return On Assets of 2.29%. This is comparable to the rest of the industry: BFH outperforms 46.30% of its industry peers.
  • With a Return On Equity value of 15.60%, BFH perfoms like the industry average, outperforming 57.41% of the companies in the same industry.
  • BFH has a Return On Invested Capital (5.35%) which is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for BFH is significantly below the industry average of 12.42%.
Industry RankSector Rank
ROA 2.29%
ROE 15.6%
ROIC 5.35%
ROA(3y)2.2%
ROA(5y)2.23%
ROE(3y)16.42%
ROE(5y)19.5%
ROIC(3y)5.82%
ROIC(5y)5.08%
BFH Yearly ROA, ROE, ROICBFH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • BFH has a Profit Margin (11.54%) which is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of BFH has grown nicely.
  • With an excellent Operating Margin value of 34.16%, BFH belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • BFH's Operating Margin has improved in the last couple of years.
  • BFH has a better Gross Margin (92.84%) than 87.04% of its industry peers.
  • BFH's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 34.16%
PM (TTM) 11.54%
GM 92.84%
OM growth 3Y22.68%
OM growth 5Y10.21%
PM growth 3Y30.78%
PM growth 5Y15.37%
GM growth 3Y0.41%
GM growth 5Y0.72%
BFH Yearly Profit, Operating, Gross MarginsBFH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. BFH Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BFH is creating value.
  • Compared to 1 year ago, BFH has less shares outstanding
  • BFH has less shares outstanding than it did 5 years ago.
  • BFH has a better debt/assets ratio than last year.
BFH Yearly Shares OutstandingBFH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
BFH Yearly Total Debt VS Total AssetsBFH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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.
  • BFH's Altman-Z score of 0.95 is fine compared to the rest of the industry. BFH outperforms 62.96% of its industry peers.
  • The Debt to FCF ratio of BFH is 8.81, which is on the high side as it means it would take BFH, 8.81 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 8.81, BFH is doing good in the industry, outperforming 61.11% of the companies in the same industry.
  • A Debt/Equity ratio of 5.48 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 5.48, BFH is doing worse than 68.52% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 5.48
Debt/FCF 8.81
Altman-Z 0.95
ROIC/WACC2.17
WACC2.47%
BFH Yearly LT Debt VS Equity VS FCFBFH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • BFH has a Current Ratio of 1.46. 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 Current ratio (1.46) which is comparable to the rest of the industry.
  • BFH has a Quick Ratio of 1.46. 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 Quick ratio of 1.46. This is comparable to the rest of the industry: BFH outperforms 59.26% of its industry peers.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.46
BFH Yearly Current Assets VS Current LiabilitesBFH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. BFH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 47.75% over the past year.
  • Measured over the past 5 years, BFH shows a small growth in Earnings Per Share. The EPS has been growing by 2.94% on average per year.
  • The Revenue has decreased by -3.14% in the past year.
  • Measured over the past years, BFH shows a small growth in Revenue. The Revenue has been growing by 3.44% on average per year.
EPS 1Y (TTM)47.75%
EPS 3Y34.31%
EPS 5Y2.94%
EPS Q2Q%728.57%
Revenue 1Y (TTM)-3.14%
Revenue growth 3Y1.27%
Revenue growth 5Y3.44%
Sales Q2Q%5.29%

3.2 Future

  • BFH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.92% yearly.
  • BFH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.73% yearly.
EPS Next Y-6.36%
EPS Next 2Y3.88%
EPS Next 3Y2.58%
EPS Next 5Y-7.92%
Revenue Next Year3.07%
Revenue Next 2Y3.33%
Revenue Next 3Y3.98%
Revenue Next 5Y2.73%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
BFH Yearly Revenue VS EstimatesBFH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
BFH Yearly EPS VS EstimatesBFH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15 20

More info and screens

Find the best growth stocksShow best growing peers

7

4. BFH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.57, the valuation of BFH can be described as very cheap.
  • Compared to the rest of the industry, the Price/Earnings ratio of BFH indicates a somewhat cheap valuation: BFH is cheaper than 62.96% of the companies listed in the same industry.
  • BFH is valuated cheaply when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 7.02, the valuation of BFH can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, BFH is valued a bit cheaper than the industry average as 68.52% of the companies are valued more expensively.
  • BFH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
Industry RankSector Rank
PE 6.57
Fwd PE 7.02
BFH Price Earnings VS Forward Price EarningsBFH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 83.33% of the companies listed in the same industry.
  • 87.04% of the companies in the same industry are more expensive than BFH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 1.48
EV/EBITDA 2.35
BFH Per share dataBFH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • BFH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.24
EPS Next 2Y3.88%
EPS Next 3Y2.58%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. BFH Dividend Analysis

5.1 Amount

  • BFH has a Yearly Dividend Yield of 1.22%.
  • BFH's Dividend Yield is comparable with the industry average which is at 2.82.
  • BFH's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.22%

5.2 History

  • The dividend of BFH decreases each year by -6.13%.
  • 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)-6.13%
Div Incr Years0
Div Non Decr Years3
BFH Yearly Dividends per shareBFH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 8.09% 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.
DP8.09%
EPS Next 2Y3.88%
EPS Next 3Y2.58%
BFH Yearly Income VS Free CF VS DividendBFH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
BFH Dividend Payout.BFH Dividend Payout, showing the Payout Ratio.BFH Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

BFH Fundamentals: All Metrics, Ratios and Statistics

BREAD FINANCIAL HOLDINGS INC

NYSE:BFH (3/13/2026, 12:47:03 PM)

71.16

-0.5 (-0.7%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners111.62%
Inst Owner ChangeN/A
Ins Owners1.3%
Ins Owner Change4.98%
Market Cap3.07B
Revenue(TTM)4.50B
Net Income(TTM)519.00M
Analysts70
Price Target84.53 (18.79%)
Short Float %9.32%
Short Ratio4.7
Dividend
Industry RankSector Rank
Dividend Yield 1.22%
Yearly Dividend0.9
Dividend Growth(5Y)-6.13%
DP8.09%
Div Incr Years0
Div Non Decr Years3
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)153.36%
Min EPS beat(2)88.7%
Max EPS beat(2)218.02%
EPS beat(4)4
Avg EPS beat(4)96.06%
Min EPS beat(4)22.48%
Max EPS beat(4)218.02%
EPS beat(8)5
Avg EPS beat(8)45.07%
EPS beat(12)9
Avg EPS beat(12)115.58%
EPS beat(16)11
Avg EPS beat(16)81.59%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)1.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)1.24%
Revenue beat(8)3
Avg Revenue beat(8)-0.9%
Revenue beat(12)6
Avg Revenue beat(12)2.29%
Revenue beat(16)10
Avg Revenue beat(16)4.66%
PT rev (1m)0.89%
PT rev (3m)17.93%
EPS NQ rev (1m)1.13%
EPS NQ rev (3m)4.01%
EPS NY rev (1m)2.05%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.12%
Valuation
Industry RankSector Rank
PE 6.57
Fwd PE 7.02
P/S 0.68
P/FCF 1.48
P/OCF 1.47
P/B 0.92
P/tB 1.18
EV/EBITDA 2.35
EPS(TTM)10.83
EY15.22%
EPS(NY)10.14
Fwd EY14.25%
FCF(TTM)47.96
FCFY67.4%
OCF(TTM)48.52
OCFY68.18%
SpS104.29
BVpS77.16
TBVpS60.55
PEG (NY)N/A
PEG (5Y)2.24
Graham Number137.12
Profitability
Industry RankSector Rank
ROA 2.29%
ROE 15.6%
ROCE 17.56%
ROIC 5.35%
ROICexc 6.36%
ROICexgc 7.08%
OM 34.16%
PM (TTM) 11.54%
GM 92.84%
FCFM 45.99%
ROA(3y)2.2%
ROA(5y)2.23%
ROE(3y)16.42%
ROE(5y)19.5%
ROIC(3y)5.82%
ROIC(5y)5.08%
ROICexc(3y)7.1%
ROICexc(5y)6.13%
ROICexgc(3y)7.52%
ROICexgc(5y)6.47%
ROCE(3y)22.55%
ROCE(5y)17.89%
ROICexgc growth 3Y34.77%
ROICexgc growth 5Y-6.42%
ROICexc growth 3Y34.46%
ROICexc growth 5Y1.18%
OM growth 3Y22.68%
OM growth 5Y10.21%
PM growth 3Y30.78%
PM growth 5Y15.37%
GM growth 3Y0.41%
GM growth 5Y0.72%
F-Score6
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 5.48
Debt/FCF 8.81
Debt/EBITDA 11.28
Cap/Depr 30%
Cap/Sales 0.53%
Interest Coverage 28.98
Cash Conversion 129.46%
Profit Quality 398.46%
Current Ratio 1.46
Quick Ratio 1.46
Altman-Z 0.95
F-Score6
WACC2.47%
ROIC/WACC2.17
Cap/Depr(3y)37.13%
Cap/Depr(5y)47.97%
Cap/Sales(3y)0.77%
Cap/Sales(5y)1.24%
Profit Quality(3y)442.47%
Profit Quality(5y)461.55%
High Growth Momentum
Growth
EPS 1Y (TTM)47.75%
EPS 3Y34.31%
EPS 5Y2.94%
EPS Q2Q%728.57%
EPS Next Y-6.36%
EPS Next 2Y3.88%
EPS Next 3Y2.58%
EPS Next 5Y-7.92%
Revenue 1Y (TTM)-3.14%
Revenue growth 3Y1.27%
Revenue growth 5Y3.44%
Sales Q2Q%5.29%
Revenue Next Year3.07%
Revenue Next 2Y3.33%
Revenue Next 3Y3.98%
Revenue Next 5Y2.73%
EBIT growth 1Y16.28%
EBIT growth 3Y24.24%
EBIT growth 5Y14%
EBIT Next Year-58.94%
EBIT Next 3Y-21.05%
EBIT Next 5YN/A
FCF growth 1Y13.44%
FCF growth 3Y5.13%
FCF growth 5Y2.49%
OCF growth 1Y12.53%
OCF growth 3Y4.22%
OCF growth 5Y2.13%

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 7 / 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 decline by -6.36% 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 8.09%.