BREAD FINANCIAL HOLDINGS INC (BFH) Fundamental Analysis & Valuation

NYSE:BFH • US0185811082

Current stock price

85.34 USD
+0.56 (+0.66%)
At close:
85.34 USD
0 (0%)
After Hours:

This BFH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. BFH Profitability Analysis

1.1 Basic Checks

  • BFH had positive earnings in the past year.
  • BFH had a positive operating cash flow in the past year.
  • Each year in the past 5 years BFH has been profitable.
  • Each year in the past 5 years BFH had a positive operating cash flow.
BFH Yearly Net Income VS EBIT VS OCF VS FCFBFH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • BFH has a Return On Assets (2.29%) which is comparable to the rest of the industry.
  • The Return On Equity of BFH (15.60%) is comparable to the rest of the industry.
  • With a Return On Invested Capital value of 5.35%, BFH perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
  • BFH had an Average Return On Invested Capital over the past 3 years of 5.82%. This is below the industry average of 9.54%.
Industry RankSector Rank
ROA 2.29%
ROE 15.6%
ROIC 5.35%
ROA(3y)2.2%
ROA(5y)2.23%
ROE(3y)16.42%
ROE(5y)19.5%
ROIC(3y)5.82%
ROIC(5y)5.08%
BFH Yearly ROA, ROE, ROICBFH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 11.54%, BFH is in line with its industry, outperforming 42.59% of the companies in the same industry.
  • BFH's Profit Margin has improved in the last couple of years.
  • BFH's Operating Margin of 34.16% is amongst the best of the industry. BFH outperforms 87.04% of its industry peers.
  • BFH's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 92.84%, BFH belongs to the best of the industry, outperforming 87.04% of the companies in the same industry.
  • In the last couple of years the Gross Margin of BFH has remained more or less at the same level.
Industry RankSector Rank
OM 34.16%
PM (TTM) 11.54%
GM 92.84%
OM growth 3Y22.68%
OM growth 5Y10.21%
PM growth 3Y30.78%
PM growth 5Y15.37%
GM growth 3Y0.41%
GM growth 5Y0.72%
BFH Yearly Profit, Operating, Gross MarginsBFH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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5

2. BFH Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BFH is creating value.
  • The number of shares outstanding for BFH has been reduced compared to 1 year ago.
  • Compared to 5 years ago, BFH has less shares outstanding
  • BFH has a better debt/assets ratio than last year.
BFH Yearly Shares OutstandingBFH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
BFH Yearly Total Debt VS Total AssetsBFH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • Based on the Altman-Z score of 0.96, we must say that BFH is in the distress zone and has some risk of bankruptcy.
  • BFH's Altman-Z score of 0.96 is fine compared to the rest of the industry. BFH outperforms 61.11% of its industry peers.
  • The Debt to FCF ratio of BFH is 8.81, which is on the high side as it means it would take BFH, 8.81 years of fcf income to pay off all of its debts.
  • BFH has a Debt to FCF ratio of 8.81. This is in the better half of the industry: BFH outperforms 61.11% of its industry peers.
  • BFH has a Debt/Equity ratio of 5.48. This is a high value indicating a heavy dependency on external financing.
  • BFH has a worse Debt to Equity ratio (5.48) than 70.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.48
Debt/FCF 8.81
Altman-Z 0.96
ROIC/WACC1.93
WACC2.77%
BFH Yearly LT Debt VS Equity VS FCFBFH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • BFH has a Current Ratio of 1.46. This is a normal value and indicates that BFH is financially healthy and should not expect problems in meeting its short term obligations.
  • BFH's Current ratio of 1.46 is in line compared to the rest of the industry. BFH outperforms 50.00% of its industry peers.
  • A Quick Ratio of 1.46 indicates that BFH should not have too much problems paying its short term obligations.
  • BFH's Quick ratio of 1.46 is in line compared to the rest of the industry. BFH outperforms 50.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.46
BFH Yearly Current Assets VS Current LiabilitesBFH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. BFH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 65.05% over the past year.
  • Measured over the past 5 years, BFH shows a small growth in Earnings Per Share. The EPS has been growing by 2.94% on average per year.
  • Looking at the last year, BFH shows a decrease in Revenue. The Revenue has decreased by -3.17% in the last year.
  • BFH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.44% yearly.
EPS 1Y (TTM)65.05%
EPS 3Y34.31%
EPS 5Y2.94%
EPS Q2Q%50.36%
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y1.27%
Revenue growth 5Y3.44%
Sales Q2Q%4.95%

3.2 Future

  • The Earnings Per Share is expected to decrease by -7.92% on average over the next years.
  • Based on estimates for the next years, BFH will show a small growth in Revenue. The Revenue will grow by 2.73% on average per year.
EPS Next Y-5.82%
EPS Next 2Y4.29%
EPS Next 3Y2.58%
EPS Next 5Y-7.92%
Revenue Next Year3.07%
Revenue Next 2Y3.3%
Revenue Next 3Y3.71%
Revenue Next 5Y2.73%

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 decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
BFH Yearly Revenue VS EstimatesBFH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
BFH Yearly EPS VS EstimatesBFH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15 20

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7

4. BFH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.98, 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 68.52% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.51, BFH is valued rather cheaply.
  • BFH is valuated cheaply with a Price/Forward Earnings ratio of 7.24.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of BFH indicates a somewhat cheap valuation: BFH is cheaper than 64.81% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of BFH to the average of the S&P500 Index (21.41), we can say BFH is valued rather cheaply.
Industry RankSector Rank
PE 6.98
Fwd PE 7.24
BFH Price Earnings VS Forward Price EarningsBFH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, BFH is valued cheaply inside the industry as 92.59% of the companies are valued more expensively.
  • 83.33% of the companies in the same industry are more expensive than BFH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 1.71
EV/EBITDA 2.62
BFH Per share dataBFH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • BFH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.37
EPS Next 2Y4.29%
EPS Next 3Y2.58%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. BFH Dividend Analysis

5.1 Amount

  • BFH has a Yearly Dividend Yield of 1.09%.
  • Compared to an average industry Dividend Yield of 3.11, BFH has a dividend in line with its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.80, BFH is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.09%

5.2 History

  • The dividend of BFH decreases each year by -6.13%.
  • 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)-6.13%
Div Incr Years1
Div Non Decr Years4
BFH Yearly Dividends per shareBFH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 8.09% of the earnings are spent on dividend by BFH. This is a low number and 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.
DP8.09%
EPS Next 2Y4.29%
EPS Next 3Y2.58%
BFH Yearly Income VS Free CF VS DividendBFH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
BFH Dividend Payout.BFH Dividend Payout, showing the Payout Ratio.BFH Dividend Payout.PayoutRetained Earnings

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BFH Fundamentals: All Metrics, Ratios and Statistics

BREAD FINANCIAL HOLDINGS INC

NYSE:BFH (5/1/2026, 8:11:20 PM)

After market: 85.34 0 (0%)

85.34

+0.56 (+0.66%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Industry Strength54.66
Industry Growth96.89
Earnings (Last)04-23
Earnings (Next)07-22
Inst Owners112.35%
Inst Owner Change1.02%
Ins Owners1.35%
Ins Owner Change4.32%
Market Cap3.53B
Revenue(TTM)4.50B
Net Income(TTM)519.00M
Analysts70
Price Target95.41 (11.8%)
Short Float %8.5%
Short Ratio4.83
Dividend
Industry RankSector Rank
Dividend Yield 1.09%
Yearly Dividend0.9
Dividend Growth(5Y)-6.13%
DP8.09%
Div Incr Years1
Div Non Decr Years4
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)153.36%
Min EPS beat(2)88.7%
Max EPS beat(2)218.02%
EPS beat(4)4
Avg EPS beat(4)96.06%
Min EPS beat(4)22.48%
Max EPS beat(4)218.02%
EPS beat(8)5
Avg EPS beat(8)45.07%
EPS beat(12)9
Avg EPS beat(12)115.58%
EPS beat(16)11
Avg EPS beat(16)81.59%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)1.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)1.24%
Revenue beat(8)3
Avg Revenue beat(8)-0.9%
Revenue beat(12)6
Avg Revenue beat(12)2.29%
Revenue beat(16)10
Avg Revenue beat(16)4.66%
PT rev (1m)12.78%
PT rev (3m)19%
EPS NQ rev (1m)1.82%
EPS NQ rev (3m)6.71%
EPS NY rev (1m)0.59%
EPS NY rev (3m)7.01%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector Rank
PE 6.98
Fwd PE 7.24
P/S 0.79
P/FCF 1.71
P/OCF 1.69
P/B 1.06
P/tB 1.35
EV/EBITDA 2.62
EPS(TTM)12.23
EY14.33%
EPS(NY)11.78
Fwd EY13.8%
FCF(TTM)49.93
FCFY58.5%
OCF(TTM)50.51
OCFY59.18%
SpS108.57
BVpS80.32
TBVpS63.04
PEG (NY)N/A
PEG (5Y)2.37
Graham Number148.671 (74.21%)
Profitability
Industry RankSector Rank
ROA 2.29%
ROE 15.6%
ROCE 17.56%
ROIC 5.35%
ROICexc 6.36%
ROICexgc 7.08%
OM 34.16%
PM (TTM) 11.54%
GM 92.84%
FCFM 45.99%
ROA(3y)2.2%
ROA(5y)2.23%
ROE(3y)16.42%
ROE(5y)19.5%
ROIC(3y)5.82%
ROIC(5y)5.08%
ROICexc(3y)7.1%
ROICexc(5y)6.13%
ROICexgc(3y)7.52%
ROICexgc(5y)6.47%
ROCE(3y)22.55%
ROCE(5y)17.89%
ROICexgc growth 3Y34.77%
ROICexgc growth 5Y-6.42%
ROICexc growth 3Y34.46%
ROICexc growth 5Y1.18%
OM growth 3Y22.68%
OM growth 5Y10.21%
PM growth 3Y30.78%
PM growth 5Y15.37%
GM growth 3Y0.41%
GM growth 5Y0.72%
F-Score6
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 5.48
Debt/FCF 8.81
Debt/EBITDA 11.28
Cap/Depr 30%
Cap/Sales 0.53%
Interest Coverage 28.98
Cash Conversion 129.46%
Profit Quality 398.46%
Current Ratio 1.46
Quick Ratio 1.46
Altman-Z 0.96
F-Score6
WACC2.77%
ROIC/WACC1.93
Cap/Depr(3y)37.13%
Cap/Depr(5y)47.97%
Cap/Sales(3y)0.77%
Cap/Sales(5y)1.24%
Profit Quality(3y)442.47%
Profit Quality(5y)461.55%
High Growth Momentum
Growth
EPS 1Y (TTM)65.05%
EPS 3Y34.31%
EPS 5Y2.94%
EPS Q2Q%50.36%
EPS Next Y-5.82%
EPS Next 2Y4.29%
EPS Next 3Y2.58%
EPS Next 5Y-7.92%
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y1.27%
Revenue growth 5Y3.44%
Sales Q2Q%4.95%
Revenue Next Year3.07%
Revenue Next 2Y3.3%
Revenue Next 3Y3.71%
Revenue Next 5Y2.73%
EBIT growth 1Y16.28%
EBIT growth 3Y24.24%
EBIT growth 5Y14%
EBIT Next Year-58.94%
EBIT Next 3Y-21.05%
EBIT Next 5YN/A
FCF growth 1Y13.44%
FCF growth 3Y5.13%
FCF growth 5Y2.49%
OCF growth 1Y12.53%
OCF growth 3Y4.22%
OCF growth 5Y2.13%

BREAD FINANCIAL HOLDINGS INC / BFH Fundamental Analysis 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 7 / 10 to BREAD FINANCIAL HOLDINGS INC (BFH). This can be considered as Undervalued.


How profitable is BREAD FINANCIAL HOLDINGS INC (BFH) stock?

BREAD FINANCIAL HOLDINGS INC (BFH) has a profitability rating of 6 / 10.


What is the valuation of BREAD FINANCIAL HOLDINGS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for BREAD FINANCIAL HOLDINGS INC (BFH) is 6.98 and the Price/Book (PB) ratio is 1.06.


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 decline by -5.82% in the next year.