BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
74.03 USD
-0.58 (-0.78%)
74.03 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
BFH had positive earnings in the past year.
BFH had a positive operating cash flow in the past year.
BFH had positive earnings in each of the past 5 years.
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.
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.
The Return On Invested Capital of BFH (4.94%) 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 3 year average ROIC (4.40%) for BFH is below the current ROIC(4.94%), indicating increased profibility in the last year.
| 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 in line with its industry peers.
In the last couple of years the Profit Margin of BFH has remained more or less at the same level.
With an excellent Operating Margin value of 32.03%, BFH belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
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.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BFH 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.
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.
With a decent Altman-Z score value of 0.95, BFH is doing good in the industry, outperforming 63.64% of the companies in the same industry.
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.
BFH has a better Debt to FCF ratio (8.77) than 63.64% 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 67.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.56
WACC3.17%
2.3 Liquidity
A Current Ratio of 1.43 indicates that BFH should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.43, BFH is doing good in the industry, outperforming 61.82% of the companies in the same industry.
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.
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
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 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
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
With a Price/Earnings ratio of 7.55, the valuation of BFH can be described as very cheap.
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 26.51, which is the current average of the S&P500 Index.
BFH is valuated cheaply with a Price/Forward Earnings ratio of 7.75.
74.55% of the companies in the same industry are more expensive than BFH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, BFH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 7.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BFH is valued cheaper than 85.45% of the companies in the same industry.
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 | 1.71 | ||
| EV/EBITDA | 2.24 |
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.
BFH has a very decent profitability rating, which may justify a higher PE ratio.
BFH's earnings are expected to grow with 15.43% in the coming years. This may justify a more expensive valuation.
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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.59, BFH has a dividend in line with its industry peers.
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
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 2Y14.17%
EPS Next 3Y15.43%
74.03
-0.58 (-0.78%)
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 Cap3.38B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts71.43
Price Target73.74 (-0.39%)
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-DateN/A
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 | 7.55 | ||
| Fwd PE | 7.75 | ||
| P/S | 0.75 | ||
| P/FCF | 1.71 | ||
| P/OCF | 1.69 | ||
| P/B | 1.02 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 2.24 |
EPS(TTM)9.81
EY13.25%
EPS(NY)9.56
Fwd EY12.91%
FCF(TTM)43.28
FCFY58.46%
OCF(TTM)43.87
OCFY59.26%
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
WACC3.17%
ROIC/WACC1.56
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 of BREAD FINANCIAL HOLDINGS INC (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.
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 grow by 35.58% 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 8.9%.