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Bread Financial Holdings, Inc. (BFH) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Bread Financial Holdings, Inc.

BFHMarket cap $3.76BPrice $97.8

Country🇺🇸United States

SectorFinancials

IndustryConsumer Finance

Powers store-branded credit cards and loyalty programs for major retailers like Victoria's Secret and Ulta Beauty. Bread Financial turns everyday shopping into credit relationships, betting that consumers will keep swiping even as delinquencies climb across the industry.

In Bastion Portfolios?

52W Return+67%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+5%5

Revenue Forecast

Rev CAGR (1y)+54%10

Rev CAGR (3y)+19%9

Rev CAGR (5y)+12%8

Earnings Forecast

EPS Growth Y+1+139%10

EPS Growth Y+2+1%4

EPS Growth Y+3+9%6

Quality

Margins

EBIT Margin0%7

Net Income Margin21%8

Free Cash Flow Margin82%10

Debt

Net Debt/EBITDAna–

Efficiency

ROE17%7

ROA3%4

Earnings Stability44

GEAR+VERY STRONG88

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)89

P/E Ratio (Forward 3y)710

P/BV1.19

EV Multiples

EV/EBITDA Fwd09

EV/EBIT Fwd09

Yield

Free Cash Flow Yield0.0%10

Dividend Yield0.9%3

Momentum

Short term

1 month return-12%2

3 month return-4%5

YTD return+33%9

Mid term

Price vs 52wHigh86%7

1 year return+78%10

Long term

3 year return+235%9

5 year return+31%5

Risk Shield

Price Risk

Beta1.42

Volatility40%4

Free Cash Flow

Free Cash Flow Margin82%10

Free Cash Flow Yield0.0%10

Quality

ROCE10%4

Earnings Stability44

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

BFHBread Financial Holdings

Revenue FY25$3.8B

GROWTH RATING↗

STRONG83 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y+54%10

Revenue, next 3Y, CAGR+19%9

Revenue, next 5Y, CAGR+12%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+139%10

EPS growth, FY27E+1%4

EPS growth, FY28E+9%6

GROWTH ASSESSMENT

STRENGTHS

It out-grows 83% of companies worldwide.

Revenue is set to grow 19%/yr over the next 3 years, ahead of most of the market.9/10

Revenue grew 5%/yr over the last 3 years and is set to grow 19%/yr from here.

The runway holds up: revenue is set to grow 12%/yr over five years.8/10

WATCH

Earnings are set to grow slower than sales (EPS about 9%/yr vs revenue 19%/yr), so margins are under pressure.

WEAKNESSES

None flagged.

BOTTOM LINE

Reaccelerating Grower

A top-tier grower that's speeding up. The one thing to watch: earnings are set to grow slower than sales.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE62 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-12%2

3-month return-4%5

YTD return+33%9

MID & LONG-TERM▾SCORE

% of 52-week high86%7

1-year return+78%10

3-year return+235%9

5-year return+31%5

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +235% over three years and +31% over five, ahead of 60% of the market.

It's up 78% over the past year, but 14% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming so far this year (+33%).

WATCH

Returns sit at the market level over three months (-4%).

WEAKNESSES

The stock is underperforming over the past month (-12%).

BOTTOM LINE

Steady Compounder

Dependable multi-year returns with a calmer near-term tape. A reliable long-term trend rather than a short-term breakout. The one thing to watch: the stock is underperforming over the past month.

04Value

Are you paying a fair price for it?

Stop guessing on Bread Financial Holdings, 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?

BFHBread Financial Holdings

Revenue FY25$3.8B

GROWTH RATING↗

STRONG83 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y+54%10

Revenue, next 3Y, CAGR+19%9

Revenue, next 5Y, CAGR+12%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+139%10

EPS growth, FY27E+1%4

EPS growth, FY28E+9%6

GROWTH ASSESSMENT

STRENGTHS

It out-grows 83% of companies worldwide.

Revenue is set to grow 19%/yr over the next 3 years, ahead of most of the market.9/10

Revenue grew 5%/yr over the last 3 years and is set to grow 19%/yr from here.

The runway holds up: revenue is set to grow 12%/yr over five years.8/10

WATCH

Earnings are set to grow slower than sales (EPS about 9%/yr vs revenue 19%/yr), so margins are under pressure.

WEAKNESSES

None flagged.

BOTTOM LINE

Reaccelerating Grower

A top-tier grower that's speeding up. The one thing to watch: earnings are set to grow slower than sales.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE62 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-12%2

3-month return-4%5

YTD return+33%9

MID & LONG-TERM▾SCORE

% of 52-week high86%7

1-year return+78%10

3-year return+235%9

5-year return+31%5

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +235% over three years and +31% over five, ahead of 60% of the market.

It's up 78% over the past year, but 14% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming so far this year (+33%).

WATCH

Returns sit at the market level over three months (-4%).

WEAKNESSES

The stock is underperforming over the past month (-12%).

BOTTOM LINE

Steady Compounder

Dependable multi-year returns with a calmer near-term tape. A reliable long-term trend rather than a short-term breakout. The one thing to watch: the stock is underperforming over the past month.

04Value

Are you paying a fair price for it?

Stop guessing on Bread Financial Holdings, 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