BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
72.21 USD
+0.21 (+0.29%)
72.21 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. 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.
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
With a Return On Assets value of 2.17%, BFH perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
The Return On Equity of BFH (14.23%) is better than 61.82% of its industry peers.
BFH has a Return On Invested Capital (4.94%) 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 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
BFH has a Profit Margin (10.52%) which is comparable to the rest of the industry.
BFH's Profit Margin has been stable in the last couple of years.
BFH's Operating Margin of 32.03% is amongst the best of the industry. BFH outperforms 87.27% of its industry peers.
BFH's Operating Margin has been stable in the last couple of years.
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
BFH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
Based on the Altman-Z score of 0.95, we must say that BFH is in the distress zone and has some risk of bankruptcy.
BFH has a better Altman-Z score (0.95) than 61.82% 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.
Looking at the Debt to FCF ratio, with a value of 8.77, BFH is in line with its industry, outperforming 60.00% of the companies in the same industry.
BFH has a Debt/Equity ratio of 5.22. This is a high value indicating a heavy dependency on external 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/WACC1.58
WACC3.12%
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.
BFH's Current ratio of 1.43 is fine compared to the rest 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.
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.
Measured over the past years, BFH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.20% on average per year.
Looking at the last year, BFH shows a decrease in Revenue. The Revenue has decreased by -5.66% in the last year.
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 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.
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 cheaply with a Price/Earnings ratio of 7.36.
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.
BFH is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
BFH is valuated cheaply with a Price/Forward Earnings ratio of 7.46.
Based on the Price/Forward Earnings ratio, BFH is valued a bit cheaper than 76.36% of the companies in the same industry.
BFH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BFH is valued cheaply inside the industry as 85.45% of the companies are valued more expensively.
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 | 1.67 | ||
| EV/EBITDA | 2.18 |
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 16.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y14.89%
EPS Next 3Y16.46%
5. Dividend
5.1 Amount
BFH has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.10, BFH has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, BFH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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 2Y14.89%
EPS Next 3Y16.46%
72.21
+0.21 (+0.29%)
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 Change2.01%
Market Cap3.30B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts71.43
Price Target71.68 (-0.73%)
Short Float %11.95%
Short Ratio7.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)2.99%
EPS NQ rev (1m)-3.47%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)17.79%
EPS NY rev (3m)22.8%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 7.46 | ||
| P/S | 0.73 | ||
| P/FCF | 1.67 | ||
| P/OCF | 1.65 | ||
| P/B | 0.99 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 2.18 |
EPS(TTM)9.81
EY13.59%
EPS(NY)9.68
Fwd EY13.4%
FCF(TTM)43.28
FCFY59.93%
OCF(TTM)43.87
OCFY60.75%
SpS98.27
BVpS72.65
TBVpS56.81
PEG (NY)0.22
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
WACC3.12%
ROIC/WACC1.58
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%.