(BBWI) Bath & Body Works - NYSE
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NYSE (USA) | Market Cap: 4.148m USD | Total Return: -18.4% in 12m
Avg Turnover: 111M
EPS Trend: 33.6%
Qual. Beats: 0
Rev. Trend: -85.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Confidence
Bath & Body Works, Inc. (BBWI) is a U.S.-based specialty retailer focused on personal care and home fragrance products, including 3-wick candles, diffusers, fine fragrance mists, body wash, hand soaps, lotions, creams, and sanitizers sold under the Bath & Body Works brand and other labels. The company operates an omnichannel model, distributing its products through its own retail stores and e-commerce sites in the United States and Canada, while expanding internationally via franchise, license, and wholesale arrangements with third-party partners. Originally part of L Brands, Inc., the company was renamed Bath & Body Works, Inc. in August 2021, reflecting its identity as a single-category specialty retailer. Founded in 1963 and headquartered in Columbus, Ohio, BBWI competes within the Consumer Discretionary sectors specialty retail sub-industry, where the business model is typically defined by frequent product rotation, seasonal fragrance launches, and a combination of physical store presence and direct-to-consumer digital sales.
- Home fragrance category led by 3-wick candles anchors revenue
- International franchise partnerships expand into new global markets
- Consumer discretionary spending pressures same-store sales traffic
- Capital returns through dividends and debt reduction continue
| Net Income: 727.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 2.31 > 1.0 |
| NWC/Revenue: 7.20% < 20% (prev 7.16%; Δ 0.05% < -1%) |
| CFO/TA 0.23 > 3% & CFO 1.16b > Net Income 727.0m |
| Net Debt (4.99b) to EBITDA (1.43b): 3.50 < 3 |
| Current Ratio: 1.38 > 1.5 & < 3 |
| Outstanding Shares: last quarter (202.0m) vs 12m ago -6.05% < -2% |
| Gross Margin: 43.19% > 18% (prev 44.55%; Δ -1.36% > 0.5%) |
| Asset Turnover: 147.2% > 50% (prev 150.5%; Δ -3.33% > 0%) |
| Interest Coverage Ratio: 4.29 > 6 (EBIT TTM 1.18b / Interest Expense TTM 274.0m) |
| A: 0.11 (Total Current Assets 1.90b - Total Current Liabilities 1.38b) / Total Assets 4.96b |
| B: -0.26 (Retained Earnings -1.29b / Total Assets 4.96b) |
| C: 0.24 (EBIT TTM 1.18b / Avg Total Assets 4.92b) |
| D: -0.19 (Book Value of Equity -1.13b / Total Liabilities 6.09b) |
| Altman-Z'' = 1.25 = BB |
| DSRI: 0.96 (Receivables 98.0m/103.0m, Revenue 7.25b/7.35b) |
| GMI: 1.03 (GM 44.55% / 43.19%) |
| AQI: 0.99 (AQ_t 0.20 / AQ_t-1 0.20) |
| SGI: 0.99 (Revenue 7.25b / 7.35b) |
| TATA: -0.09 (NI 727.0m - CFO 1.16b) / TA 4.96b) |
| Beneish M = -3.05 (Cap -4..+1) = AA |
As of June 27, 2026, the stock is trading at USD 22.86 with a total of 4,357,465 shares traded. Over the past week, the price has changed by +11.19%, over one month by +30.39%, over three months by +29.66% and over the past year by -18.43%.
Current recommended Stop Loss: 20.60 (which is 9.9% or 2.1 ATR below the current price).
Bath & Body Works has received a consensus analysts rating of 3.85. Therefore, it is recommended to buy BBWI.
- StrongBuy: 7
- Buy: 4
- Hold: 8
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 25.6 | 12.2% |
P/E Trailing = 5.8466
P/E Forward = 6.9589
P/S = 0.572
P/B = 1403.3759
P/EG = 0.7943
Revenue TTM = 7.25b USD
EBIT TTM = 1.18b USD
EBITDA TTM = 1.43b USD
Long Term Debt = 3.61b USD (from longTermDebt, last quarter)
Short Term Debt = 206.0m USD (from shortTermDebt, last quarter)
Debt = 5.81b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.10b
Net Debt = 4.99b USD (calculated: Debt 5.81b - CCE 820.0m)
Enterprise Value = 9.14b USD (4.15b + Debt 5.81b - CCE 820.0m)
Interest Coverage Ratio = 4.29 (Ebit TTM 1.18b / Interest Expense TTM 274.0m)
EV/FCF = 10.06x (Enterprise Value 9.14b / FCF TTM 909.0m)
FCF Yield = 9.94% (FCF TTM 909.0m / Enterprise Value 9.14b)
FCF Margin = 12.55% (FCF TTM 909.0m / Revenue TTM 7.25b)
Net Margin = 10.03% (Net Income TTM 727.0m / Revenue TTM 7.25b)
Gross Margin = 43.19% ((Revenue TTM 7.25b - Cost of Revenue TTM 4.12b) / Revenue TTM)
Gross Margin QoQ = 42.60% (prev 45.67%)
Tobins Q-Ratio = 1.84 (Enterprise Value 9.14b / Total Assets 4.96b)
Interest Expense / Debt = 4.71% (Interest Expense 274.0m / Debt 5.81b)
Taxrate = 19.40% (175.0m / 902.0m)
NOPAT = 947.0m (EBIT 1.18b * (1 - 19.40%))
Current Ratio = 1.38 (Total Current Assets 1.90b / Total Current Liabilities 1.38b)
Debt / Equity = -5.13 (negative equity) (Debt 5.81b / totalStockholderEquity, last quarter -1.13b)
Debt / EBITDA = 3.50 (Net Debt 4.99b / EBITDA 1.43b)
Debt / FCF = 5.49 (Net Debt 4.99b / FCF TTM 909.0m)
Total Stockholder Equity = -1.39b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.77% (Net Income 727.0m / Total Assets 4.96b)
RoE = -52.38% (negative equity) (Net Income TTM 727.0m / Total Stockholder Equity -1.39b)
RoCE = 52.81% (EBIT 1.18b / Capital Employed (Equity -1.39b + L.T.Debt 3.61b))
RoIC = 27.61% (NOPAT 947.0m / Invested Capital 3.43b)
WACC = 7.00% (E(4.15b)/V(9.96b) * Re(11.48%) + D(5.81b)/V(9.96b) * Rd(4.71%) * (1-Tc(0.19)))
Discount Rate = 11.48% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.61 | Cagr: -5.05%
[DCF] Terminal Value 77.97% ; FCFF base≈857.8m ; Y1≈983.3m ; Y5≈1.45b
[DCF] Fair Price = 83.27 (EV 21.8b - Net Debt 4.99b = Equity 16.8b / Shares 201.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 33.62 | EPS CAGR: 1.57% | SUE: 0.29 | # QB: 0
Revenue Correlation: -85.04 | Revenue CAGR: -0.80% | SUE: 0.40 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.24 | Chg30d=+18.32% | Revisions=+76% | Analysts=16
EPS next Quarter (2026-10-31): EPS=0.25 | Chg30d=-8.99% | Revisions=-44% | Analysts=16
EPS current Year (2027-01-31): EPS=2.65 | Chg30d=+0.47% | Revisions=+20% | GrowthEPS=-17.5% | GrowthRev=-2.6%
EPS next Year (2028-01-31): EPS=2.87 | Chg30d=-0.06% | Revisions=+25% | GrowthEPS=+8.3% | GrowthRev=+1.9%
[Analyst] Revisions Ratio: +76%