BREAD FINANCIAL HOLDINGS INC (BFH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFH - US0185811082 - Common Stock
69.79 USD
-1.99 (-2.77%)
69.99 USD
+0.2 (+0.29%)
Overall BFH gets a fundamental rating of 5 out of 10. We evaluated BFH against 53 industry peers in the Consumer Finance industry. BFH has only an average score on both its financial health and profitability. BFH is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
- BFH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BFH has a Return On Assets (2.17%) which is in line with its industry peers.
- With a Return On Equity value of 14.23%, BFH perfoms like the industry average, outperforming 56.60% of the companies in the same industry.
- With a Return On Invested Capital value of 4.94%, BFH perfoms like the industry average, outperforming 56.60% 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 12.42%.
- 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
- With a Profit Margin value of 10.52%, BFH perfoms like the industry average, outperforming 47.17% of the companies in the same industry.
- BFH's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 32.03%, BFH belongs to the best of the industry, outperforming 84.91% 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.
- The Gross Margin of BFH (92.67%) is better than 90.57% 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
- BFH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for BFH has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.94, we must say that BFH is in the distress zone and has some risk of bankruptcy.
- BFH's Altman-Z score of 0.94 is fine compared to the rest of the industry. BFH outperforms 60.38% 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.
- The Debt to FCF ratio of BFH (8.77) is better than 62.26% of its industry peers.
- 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 66.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 0.94 |
ROIC/WACC1.62
WACC3.06%
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 60.38% 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.
- The Quick ratio of BFH (1.43) is better than 60.38% 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.
- 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%.
- Measured over the past years, BFH shows a decrease in Revenue. The Revenue has been decreasing by -0.19% on average per year.
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 small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.22% yearly.
- The Revenue is expected to grow by 1.39% on average over the next years.
EPS Next Y35.58%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
EPS Next 5Y1.22%
Revenue Next Year-1.53%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
Revenue Next 5Y1.39%
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
- With a Price/Earnings ratio of 7.11, the valuation of BFH can be described as very cheap.
- Based on the Price/Earnings ratio, BFH is valued a bit cheaper than 67.92% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BFH to the average of the S&P500 Index (27.30), we can say BFH is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.30, the valuation of BFH can be described as very cheap.
- Based on the Price/Forward Earnings ratio, BFH is valued a bit cheaper than 75.47% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, BFH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 7.3 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BFH is valued cheaper than 84.91% of the companies in the same industry.
- 86.79% 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 | 1.61 | ||
| EV/EBITDA | 2.11 |
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.
- A more expensive valuation may be justified as BFH's earnings are expected to grow with 15.43% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y14.17%
EPS Next 3Y15.43%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.13%, BFH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.60, BFH has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.92, BFH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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.
DP8.9%
EPS Next 2Y14.17%
EPS Next 3Y15.43%
69.79
-1.99 (-2.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners111.11%
Inst Owner ChangeN/A
Ins Owners1.06%
Ins Owner Change-0.25%
Market Cap3.19B
Revenue(TTM)4.49B
Net Income(TTM)472.00M
Analysts68.57
Price Target73.74 (5.66%)
Short Float %11.5%
Short Ratio6.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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)2.71%
EPS NQ rev (1m)5.26%
EPS NQ rev (3m)9.76%
EPS NY rev (1m)-0.59%
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)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 7.3 | ||
| P/S | 0.71 | ||
| P/FCF | 1.61 | ||
| P/OCF | 1.59 | ||
| P/B | 0.96 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 2.11 |
EPS(TTM)9.81
EY14.06%
EPS(NY)9.56
Fwd EY13.69%
FCF(TTM)43.28
FCFY62.01%
OCF(TTM)43.87
OCFY62.86%
SpS98.27
BVpS72.65
TBVpS56.81
PEG (NY)0.2
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
WACC3.06%
ROIC/WACC1.62
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 5Y1.22%
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 5Y1.39%
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%.