BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
74.61 USD
-0.57 (-0.76%)
74.61 USD
0 (0%)
BFH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Consumer Finance industry. BFH has an average financial health and profitability rating. BFH has a bad growth rate and is valued cheaply.
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.
Looking at the Return On Equity, with a value of 14.23%, BFH is in line with its industry, outperforming 60.00% of the companies in the same industry.
BFH has a Return On Invested Capital (4.94%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BFH is significantly below the industry average of 12.44%.
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 of 10.52%. This is comparable to the rest of the industry: BFH outperforms 50.91% of its industry peers.
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 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
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
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
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 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.
BFH has a Debt/Equity ratio of 5.22. This is a high value indicating a heavy dependency on external financing.
BFH has a worse Debt to Equity ratio (5.22) than 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.55
WACC3.18%
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.
Looking at the Current ratio, with a value of 1.43, BFH is in the better half of 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.
BFH has a better Quick ratio (1.43) than 61.82% of its industry peers.
| 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.
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 Y35.58%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
EPS Next 5Y-1.18%
Revenue Next Year-1.53%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
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
The Price/Earnings ratio is 7.61, which indicates a rather cheap valuation of BFH.
Based on the Price/Earnings ratio, BFH is valued a bit cheaper than 69.09% of the companies in the same industry.
BFH is valuated cheaply when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.81 indicates a rather cheap valuation of BFH.
Based on the Price/Forward Earnings ratio, BFH is valued a bit cheaper than 74.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.35. BFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.61 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
85.45% of the companies in the same industry are more expensive than BFH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BFH is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.72 | ||
| EV/EBITDA | 2.26 |
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 15.43% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y14.17%
EPS Next 3Y15.43%
5. Dividend
5.1 Amount
BFH has a Yearly Dividend Yield of 1.20%.
BFH's Dividend Yield is comparable with the industry average which is at 2.59.
Compared to an average S&P500 Dividend Yield of 2.00, BFH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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
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 2Y14.17%
EPS Next 3Y15.43%
74.61
-0.57 (-0.76%)
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 Cap3.41B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts71.43
Price Target73.74 (-1.17%)
Short Float %11.5%
Short Ratio6.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)2.87%
PT rev (3m)2.94%
EPS NQ rev (1m)5.26%
EPS NQ rev (3m)9.44%
EPS NY rev (1m)1.91%
EPS NY rev (3m)22.37%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.61 | ||
| Fwd PE | 7.81 | ||
| P/S | 0.76 | ||
| P/FCF | 1.72 | ||
| P/OCF | 1.7 | ||
| P/B | 1.03 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 2.26 |
EPS(TTM)9.81
EY13.15%
EPS(NY)9.56
Fwd EY12.81%
FCF(TTM)43.28
FCFY58%
OCF(TTM)43.87
OCFY58.8%
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
WACC3.18%
ROIC/WACC1.55
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 Y35.58%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
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-1.53%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
Revenue Next 5Y3.25%
EBIT growth 1Y4.51%
EBIT growth 3Y-2.32%
EBIT growth 5Y0.46%
EBIT Next Year-64.09%
EBIT Next 3Y-28.12%
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%.