Bread Financial Holdings, Inc.
Bread Financial Holdings, Inc. Fundamental Analysis
Bread Financial Holdings, Inc. (BFH) shows moderate financial fundamentals with a PE ratio of 6.52, profit margin of 11.02%, and ROE of 16.09%. The company generates $4.8B in annual revenue with weak year-over-year growth of -7.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BFH's fundamental strength across five key dimensions:
Efficiency Score
WeakBFH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBFH trades at attractive valuation levels.
Growth Score
WeakBFH faces weak or negative growth trends.
Financial Health Score
WeakBFH carries high financial risk with limited liquidity.
Profitability Score
ModerateBFH maintains healthy but balanced margins.
Key Financial Metrics
Is BFH Expensive or Cheap?
P/E Ratio
BFH trades at 6.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BFH's PEG of 0.63 indicates potential undervaluation.
Price to Book
The market values Bread Financial Holdings, Inc. at 1.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.81 times EBITDA. This is generally considered low.
How Well Does BFH Make Money?
Net Profit Margin
For every $100 in sales, Bread Financial Holdings, Inc. keeps $11.02 as profit after all expenses.
Operating Margin
Core operations generate 13.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.09 in profit for every $100 of shareholder equity.
ROA
Bread Financial Holdings, Inc. generates $2.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bread Financial Holdings, Inc. generates strong operating cash flow of $2.12B, reflecting robust business health.
Free Cash Flow
Bread Financial Holdings, Inc. generates strong free cash flow of $2.12B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $46.41 in free cash annually.
FCF Yield
BFH converts 60.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How BFH Stacks Against Its Sector Peers
| Metric | BFH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.52 | 18.86 | Better (Cheaper) |
| ROE | 16.09% | 847.00% | Weak |
| Net Margin | 11.02% | 4202.00% | Weak |
| Debt/Equity | 1.32 | 0.91 | Weak (High Leverage) |
| Current Ratio | 0.27 | 667.17 | Weak Liquidity |
| ROA | 2.29% | -21543.00% (disorted) | Weak |
BFH outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bread Financial Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.47%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
0.44%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
53.90%
Industry Style: Value, Dividend, Cyclical
High Growth