BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
78.27 USD
+0.27 (+0.35%)
Taking everything into account, BFH scores 5 out of 10 in our fundamental rating. BFH was compared to 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 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
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.
BFH has a Return On Equity (14.23%) which is in line with its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for BFH is significantly below the industry average of 12.59%.
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
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.
Looking at the Operating Margin, with a value of 32.03%, BFH belongs to the top 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.
BFH has a better Gross Margin (92.67%) than 89.09% of its industry peers.
In the last couple of years the Gross Margin of BFH has remained more or less at the same level.
| 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
The number of shares outstanding for BFH has been increased compared to 5 years ago.
BFH has a better debt/assets ratio than last year.
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 Altman-Z score of 0.95. This is in the better half of the industry: BFH outperforms 63.64% of its industry peers.
BFH has a debt to FCF ratio of 8.77. This is a slightly negative value and a sign of low solvency as BFH would need 8.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.77, BFH is doing good in the industry, outperforming 61.82% of the companies in the same industry.
A Debt/Equity ratio of 5.22 is on the high side and indicates that BFH has dependencies on debt financing.
With a Debt to Equity ratio value of 5.22, BFH is not doing good in the industry: 69.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.51
WACC3.27%
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 better Current ratio (1.43) than 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.
The Revenue has decreased by -5.66% in the past year.
BFH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.19% yearly.
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
Based on estimates for the next years, BFH will show a decrease in Earnings Per Share. The EPS will decrease by -1.18% on average per year.
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.
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
A Price/Earnings ratio of 7.98 indicates a rather cheap valuation of BFH.
69.09% of the companies in the same industry are more expensive than BFH, based on the Price/Earnings ratio.
BFH is valuated cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.08, the valuation of BFH can be described as reasonable.
BFH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BFH is cheaper than 70.91% of the companies in the same industry.
BFH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 8.08 |
4.2 Price Multiples
BFH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BFH is cheaper than 85.45% of the companies in the same industry.
87.27% of the companies in the same industry are more expensive than BFH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.81 | ||
| EV/EBITDA | 2.36 |
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.
The decent profitability rating of BFH 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)0.22
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%.
Compared to an average industry Dividend Yield of 2.35, BFH has a dividend in line with its industry peers.
BFH's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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 2Y14.94%
EPS Next 3Y16.56%
NYSE:BFH (12/22/2025, 9:55:27 AM)
78.27
+0.27 (+0.35%)
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 Cap3.57B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts71.43
Price Target71.68 (-8.42%)
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 | 7.98 | ||
| Fwd PE | 8.08 | ||
| P/S | 0.8 | ||
| P/FCF | 1.81 | ||
| P/OCF | 1.78 | ||
| P/B | 1.08 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 2.36 |
EPS(TTM)9.81
EY12.53%
EPS(NY)9.68
Fwd EY12.37%
FCF(TTM)43.28
FCFY55.29%
OCF(TTM)43.87
OCFY56.05%
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
WACC3.27%
ROIC/WACC1.51
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 8 / 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%.