Bread Financial Holdings, Inc. (BFH.PB) stock analysis

P/E above its 5-year median

Bread Financial's P/E of 8.2 is above its own 5-year median of 5.6.

P/E below the industry

Bread Financial's P/E of 8.2 is below the Personal Credit Institutions median of 12.2.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Bread Financial's price-to-book of 1.21 is below the Personal Credit Institutions median of 1.93.

Trading below fair value

The share price of $105.66 is below our fair value estimate of $115.78.

Margin of safety under 20%

The price is 8.7% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 34.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 99.0% over the last twelve months, against a 5-year average of 19.3% a year.

Growing slower than the industry

Revenue grew 3.9% over the last twelve months; the Personal Credit Institutions median is 10.0%.

Guidance raised

Bread Financial raised its full year normalized effective tax rate outlook on Jul 23, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 17.4% over the last twelve months and averaged 21.6% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity below the industry

Bread Financial's return on equity of 17.4% is below the Personal Credit Institutions median of 22.7%.

Earnings grew over 5 years

Net income grew 19.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 14.4% over the last twelve months, against a 5-year average of 13.5%.

Net margin below the industry

Bread Financial's net margin of 14.4% is below the Personal Credit Institutions median of 14.4%.

No debt

Bread Financial has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.41; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Bread Financial paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Bread Financial yields 0.9%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 6.9% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.