BREAD FINANCIAL HOLDINGS INC (BFH) Fundamental Analysis & Valuation

NYSE:BFH • US0185811082

Current stock price

77.83 USD
+3.21 (+4.3%)
Last:

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

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.
  • Each year in the past 5 years BFH had a positive operating cash flow.
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's Return On Assets of 2.29% is in line compared to the rest of the industry. BFH outperforms 48.15% of its industry peers.
  • BFH has a Return On Equity of 15.60%. This is comparable to the rest of the industry: BFH outperforms 57.41% of its industry peers.
  • The Return On Invested Capital of BFH (5.35%) is comparable to the rest of the industry.
  • BFH had an Average Return On Invested Capital over the past 3 years of 5.82%. This is significantly below the industry average of 12.36%.
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

  • Looking at the Profit Margin, with a value of 11.54%, BFH is in line with its industry, outperforming 42.59% of the companies in the same industry.
  • In the last couple of years the Profit Margin of BFH has grown nicely.
  • BFH has a better Operating Margin (34.16%) than 85.19% of its industry peers.
  • In the last couple of years the Operating Margin of BFH has grown nicely.
  • Looking at the Gross Margin, with a value of 92.84%, BFH belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
  • 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

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5

2. BFH Health Analysis

2.1 Basic Checks

  • BFH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • BFH has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, BFH has less shares outstanding
  • 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 has a better Altman-Z score (0.95) than 64.81% of its industry peers.
  • BFH has a debt to FCF ratio of 8.81. This is a slightly negative value and a sign of low solvency as BFH would need 8.81 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 8.81, BFH is doing good in the industry, outperforming 62.96% 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.
  • BFH has a worse Debt to Equity ratio (5.48) than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.48
Debt/FCF 8.81
Altman-Z 0.95
ROIC/WACC2.08
WACC2.57%
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

  • A Current Ratio of 1.46 indicates that BFH should not have too much problems paying its short term obligations.
  • BFH has a Current ratio (1.46) which is in line with its industry peers.
  • 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.
  • With a Quick ratio value of 1.46, BFH perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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

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

3

3. BFH Growth Analysis

3.1 Past

  • BFH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.75%, which is quite impressive.
  • BFH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.94% yearly.
  • BFH shows a decrease in Revenue. In the last year, the revenue decreased by -3.14%.
  • The Revenue has been growing slightly by 3.44% on average over the past years.
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

  • Based on estimates for the next years, BFH will show a decrease in Earnings Per Share. The EPS will decrease by -7.92% on average per year.
  • Based on estimates for the next years, BFH will show a small growth in Revenue. The Revenue will grow by 2.73% on average per year.
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

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7

4. BFH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 7.19, the valuation of BFH can be described as very cheap.
  • Based on the Price/Earnings ratio, BFH is valued a bit cheaper than the industry average as 64.81% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, BFH is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 7.67, the valuation of BFH can be described as very cheap.
  • BFH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BFH is cheaper than 62.96% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.42. BFH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.19
Fwd PE 7.67
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

  • BFH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BFH is cheaper than 87.04% of the companies in the same industry.
  • 83.33% 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 1.62
EV/EBITDA 2.43
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)2.45
EPS Next 2Y3.88%
EPS Next 3Y2.58%

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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 1.25%.
  • Compared to an average industry Dividend Yield of 3.30, BFH has a dividend in line with its industry peers.
  • BFH's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.25%

5.2 History

  • The dividend of BFH decreases each year by -6.13%.
  • 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)-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.
  • The Dividend Rate of BFH has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP8.09%
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

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BFH Fundamentals: All Metrics, Ratios and Statistics

BREAD FINANCIAL HOLDINGS INC

NYSE:BFH (3/23/2026, 11:17:26 AM)

77.83

+3.21 (+4.3%)

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 Cap3.36B
Revenue(TTM)4.50B
Net Income(TTM)519.00M
Analysts70
Price Target84.53 (8.61%)
Short Float %9.34%
Short Ratio4.5
Dividend
Industry RankSector Rank
Dividend Yield 1.25%
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)1.25%
EPS NQ rev (3m)4.61%
EPS NY rev (1m)2.05%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-1.12%
Valuation
Industry RankSector Rank
PE 7.19
Fwd PE 7.67
P/S 0.75
P/FCF 1.62
P/OCF 1.6
P/B 1.01
P/tB 1.29
EV/EBITDA 2.43
EPS(TTM)10.83
EY13.91%
EPS(NY)10.14
Fwd EY13.03%
FCF(TTM)47.96
FCFY61.62%
OCF(TTM)48.52
OCFY62.34%
SpS104.29
BVpS77.16
TBVpS60.55
PEG (NY)N/A
PEG (5Y)2.45
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
WACC2.57%
ROIC/WACC2.08
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 Fundamental Analysis 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%.