BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
67.73 USD
+0.27 (+0.4%)
67.73 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. Both the profitability and the financial health of BFH get a neutral evaluation. Nothing too spectacular is happening here. BFH is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BFH had positive earnings in the past year.
In the past year BFH had a positive cash flow from operations.
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.
1.2 Ratios
The Return On Assets of BFH (2.17%) is comparable to the rest of the industry.
BFH has a Return On Equity of 14.23%. This is in the better half of the industry: BFH outperforms 61.82% of its industry peers.
BFH has a Return On Invested Capital (4.94%) which is comparable to the rest of the industry.
BFH had an Average Return On Invested Capital over the past 3 years of 4.40%. This 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 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.
The Operating Margin of BFH (32.03%) is better than 87.27% of its industry peers.
In the last couple of years the Operating Margin of BFH has remained more or less at the same level.
BFH's Gross Margin of 92.67% is amongst the best of the industry. BFH outperforms 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
BFH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BFH has been reduced compared to 1 year ago.
BFH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BFH has an improved debt to assets ratio.
2.2 Solvency
BFH has an Altman-Z score of 0.94. This is a bad value and indicates that BFH is not financially healthy and even has some risk of bankruptcy.
BFH has a Altman-Z score (0.94) which is in line with 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.
BFH has a Debt to FCF ratio of 8.77. This is comparable to the rest of the industry: BFH outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 5.22 is on the high side and indicates that BFH has dependencies on debt financing.
BFH has a Debt to Equity ratio of 5.22. This is in the lower half of the industry: BFH underperforms 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.94 |
ROIC/WACC1.66
WACC2.98%
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 has a Current ratio of 1.43. This is in the better half 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.
BFH's Quick ratio of 1.43 is fine compared to the rest of the industry. BFH outperforms 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
BFH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.26%, which is quite impressive.
The earnings per share for BFH have been decreasing by -15.20% on average. This is quite bad
BFH shows a decrease in Revenue. In the last year, the revenue decreased by -5.66%.
The Revenue has been decreasing by -0.19% on average over the past years.
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.
BFH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
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.
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 6.90, which 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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 7.00, 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 76.36% of the companies in the same industry.
BFH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.9 | ||
| Fwd PE | 7 |
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 cheaper than 89.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.57 | ||
| EV/EBITDA | 2.05 |
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.
The decent profitability rating of BFH 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)0.21
PEG (5Y)N/A
EPS Next 2Y14.89%
EPS Next 3Y16.46%
5. Dividend
5.1 Amount
BFH has a Yearly Dividend Yield of 1.36%.
BFH's Dividend Yield is comparable with the industry average which is at 5.10.
With a Dividend Yield of 1.36, BFH pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
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 2Y14.89%
EPS Next 3Y16.46%
67.73
+0.27 (+0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners107.16%
Inst Owner ChangeN/A
Ins Owners1.05%
Ins Owner Change2.01%
Market Cap3.09B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts70.48
Price Target71.68 (5.83%)
Short Float %11.42%
Short Ratio7.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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 | 6.9 | ||
| Fwd PE | 7 | ||
| P/S | 0.69 | ||
| P/FCF | 1.57 | ||
| P/OCF | 1.54 | ||
| P/B | 0.93 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 2.05 |
EPS(TTM)9.81
EY14.48%
EPS(NY)9.68
Fwd EY14.29%
FCF(TTM)43.28
FCFY63.9%
OCF(TTM)43.87
OCFY64.77%
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 | 0.94 |
F-Score6
WACC2.98%
ROIC/WACC1.66
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%.