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Bath & Body Works, Inc. (BBWI) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Bath & Body Works, Inc.

BBWIMarket cap $3.59BPrice $17.8

Country🇺🇸United States

SectorConsumer

IndustrySpecialty Retail

Sells scented candles, lotions, and soaps that turn a quick mall stop into an impulse buy every time. Its signature fragrances drive repeat visits so strong that candles alone generate over $1 billion in annual sales.

In Bastion Portfolios?

52W Return-31%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-1%2

Revenue Forecast

Rev CAGR (1y)-3%2

Rev CAGR (3y)+1%1

Rev CAGR (5y)+2%2

Earnings Forecast

EPS Growth Y+1-11%3

EPS Growth Y+2-1%3

EPS Growth Y+3+1%4

Quality

Margins

EBIT Margin15%6

Net Income Margin11%6

Free Cash Flow Margin14%7

Debt

Net Debt/EBITDA2.24

Efficiency

ROEna–

ROA16%10

Earnings Stability22

GEAR+WEAK18

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)710

P/E Ratio (Forward 3y)610

P/BVna–

EV Multiples

EV/EBITDA Fwd69

EV/EBIT Fwd89

Yield

Free Cash Flow Yield28.7%10

Dividend Yield4.5%9

Momentum

Short term

1 month return-6%5

3 month return-7%4

YTD return-9%4

Mid term

Price vs 52wHigh68%3

1 year return-29%2

Long term

3 year return-39%1

5 year return-68%1

Risk Shield

Price Risk

Beta1.42

Volatility61%2

Free Cash Flow

Free Cash Flow Margin14%7

Free Cash Flow Yield28.7%10

Quality

ROCE31%10

Earnings Stability22

Net Debt/EBITDA2.24

02Growth

Is it actually growing, and how fast?

BBWIBath & Body Works

Revenue FY26$7.3B

GROWTH RATING↗

VERY WEAK4 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%2

Revenue, next 1Y-3%2

Revenue, next 3Y, CAGR+1%1

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY27E-11%3

EPS growth, FY28E-1%3

EPS growth, FY29E+1%4

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue fell 1%/yr over the last 3 years and is set to grow around 0.6%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 96% of companies worldwide.

Revenue fell 1%/yr over the last 3 years, behind 80% of companies worldwide.2/10

Revenue is set to grow 0.6%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

Earnings are set to fall even as revenue grows (EPS about -0.5%/yr vs revenue 0.6%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK10 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%5

3-month return-7%4

YTD return-9%4

MID & LONG-TERM▾SCORE

% of 52-week high68%3

1-year return-29%2

3-year return-39%1

5-year return-68%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-6%), over three months (-7%) and so far this year (-9%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-39% over three years and -68% over five), behind 90% of the market.

It's down 29% over the past year, now 32% below its 52-week high. That is lagging the market.

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Bath & Body Works, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

BBWIBath & Body Works

Revenue FY26$7.3B

GROWTH RATING↗

VERY WEAK4 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%2

Revenue, next 1Y-3%2

Revenue, next 3Y, CAGR+1%1

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY27E-11%3

EPS growth, FY28E-1%3

EPS growth, FY29E+1%4

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue fell 1%/yr over the last 3 years and is set to grow around 0.6%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 96% of companies worldwide.

Revenue fell 1%/yr over the last 3 years, behind 80% of companies worldwide.2/10

Revenue is set to grow 0.6%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

Earnings are set to fall even as revenue grows (EPS about -0.5%/yr vs revenue 0.6%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK10 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%5

3-month return-7%4

YTD return-9%4

MID & LONG-TERM▾SCORE

% of 52-week high68%3

1-year return-29%2

3-year return-39%1

5-year return-68%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-6%), over three months (-7%) and so far this year (-9%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-39% over three years and -68% over five), behind 90% of the market.

It's down 29% over the past year, now 32% below its 52-week high. That is lagging the market.

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Bath & Body Works, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community