(BBWI) Bath & Body Works - Overview
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NYSE (USA) | Market Cap: 3.577m USD | Total Return: -27.4% in 12m
Avg Turnover: 99.2M
EPS Trend: -12.3%
Qual. Beats: -1
Rev. Trend: -85.2%
Qual. Beats: 1
Warnings
Altman Z'' 0.99 < 1.0 - financial distress zone
Fakeout
Tailwinds
No distinct edge detected
Bath & Body Works Inc. (BBWI) is a specialty retailer focused on personal care and home fragrance products. Its portfolio includes candles, soaps, body lotions, and sanitizers sold under its namesake brand. Following its 2021 separation from L Brands, the company operates a multi-channel model consisting of company-owned stores in the U.S. and Canada, e-commerce platforms, and international franchise partnerships.
The specialty retail sector for personal care is characterized by high inventory turnover and seasonal demand cycles, particularly during the fourth quarter. Bath & Body Works maintains a vertically integrated supply chain, with the majority of its products manufactured in North America to ensure faster speed-to-market for seasonal collections. For a deeper look at these operational metrics, you may find ValueRays detailed reports helpful. The company is headquartered in Columbus, Ohio, and has maintained a market presence since 1963.
- Direct-to-consumer digital sales growth offsets declining physical store foot traffic
- Raw material cost volatility impacts gross margins for home fragrance products
- International franchise expansion drives high-margin royalty revenue in emerging markets
- Seasonal consumer spending patterns during holiday quarters dictate annual earnings performance
- Product innovation cycles in personal care categories sustain brand loyalty and pricing power
| Net Income: 649.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.17 > 0.02 and ΔFCF/TA 3.52 > 1.0 |
| NWC/Revenue: 5.87% < 20% (prev 8.10%; Δ -2.23% < -1%) |
| CFO/TA 0.22 > 3% & CFO 1.10b > Net Income 649.0m |
| Net Debt (5.06b) to EBITDA (1.41b): 3.59 < 3 |
| Current Ratio: 1.27 > 1.5 & < 3 |
| Outstanding Shares: last quarter (211.6m) vs 12m ago -2.48% < -2% |
| Gross Margin: 43.73% > 18% (prev 0.44%; Δ 4.33k% > 0.5%) |
| Asset Turnover: 146.7% > 50% (prev 150.0%; Δ -3.29% > 0%) |
| Interest Coverage Ratio: 4.19 > 6 (EBITDA TTM 1.41b / Interest Expense TTM 276.0m) |
| A: 0.08 (Total Current Assets 2.02b - Total Current Liabilities 1.59b) / Total Assets 5.07b |
| B: -0.28 (Retained Earnings -1.44b / Total Assets 5.07b) |
| C: 0.23 (EBIT TTM 1.16b / Avg Total Assets 4.97b) |
| D: -0.20 (Book Value of Equity -1.25b / Total Liabilities 6.35b) |
| Altman-Z'' = 0.99 = BB |
| DSRI: 0.88 (Receivables 180.0m/205.0m, Revenue 7.29b/7.31b) |
| GMI: 1.01 (GM 43.73% / 44.25%) |
| AQI: 0.97 (AQ_t 0.19 / AQ_t-1 0.20) |
| SGI: 1.00 (Revenue 7.29b / 7.31b) |
| TATA: -0.09 (NI 649.0m - CFO 1.10b) / TA 5.07b) |
| Beneish M = -3.23 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 20.02 with a total of 4,705,495 shares traded.
Over the past week, the price has changed by +15.59%,
over one month by +9.22%,
over three months by -12.04% and
over the past year by -27.43%.
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 | 26.4 | 32% |
P/E Trailing = 5.7106
P/E Forward = 6.7797
P/S = 0.4905
P/B = 1403.3759
P/EG = 0.7792
Revenue TTM = 7.29b USD
EBIT TTM = 1.16b USD
EBITDA TTM = 1.41b USD
Long Term Debt = 3.61b USD (from longTermDebt, last quarter)
Short Term Debt = 475.0m USD (from shortTermDebt, last quarter)
Debt = 6.02b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.06b
Net Debt = 5.06b USD (calculated: Debt 6.02b - CCE 953.0m)
Enterprise Value = 8.64b USD (3.58b + Debt 6.02b - CCE 953.0m)
Interest Coverage Ratio = 4.19 (Ebit TTM 1.16b / Interest Expense TTM 276.0m)
EV/FCF = 9.99x (Enterprise Value 8.64b / FCF TTM 865.0m)
FCF Yield = 10.01% (FCF TTM 865.0m / Enterprise Value 8.64b)
FCF Margin = 11.86% (FCF TTM 865.0m / Revenue TTM 7.29b)
Net Margin = 8.90% (Net Income TTM 649.0m / Revenue TTM 7.29b)
Gross Margin = 43.73% ((Revenue TTM 7.29b - Cost of Revenue TTM 4.10b) / Revenue TTM)
Gross Margin QoQ = 45.67% (prev 41.28%)
Tobins Q-Ratio = 1.70 (Enterprise Value 8.64b / Total Assets 5.07b)
Interest Expense / Debt = 4.59% (Interest Expense 276.0m / Debt 6.02b)
Taxrate = 25.09% (135.0m / 538.0m)
NOPAT = 866.7m (EBIT 1.16b * (1 - 25.09%))
Current Ratio = 1.27 (Total Current Assets 2.02b / Total Current Liabilities 1.59b)
Debt / Equity = -4.70 (negative equity) (Debt 6.02b / totalStockholderEquity, last quarter -1.28b)
Debt / EBITDA = 3.59 (Net Debt 5.06b / EBITDA 1.41b)
Debt / FCF = 5.85 (Net Debt 5.06b / FCF TTM 865.0m)
Total Stockholder Equity = -1.47b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.06% (Net Income 649.0m / Total Assets 5.07b)
RoE = -2.00k% (out of range, set to none) (Net Income TTM 649.0m / Total Stockholder Equity -32.5m)
RoCE = 32.32% (EBIT 1.16b / Capital Employed (Equity -32.5m + L.T.Debt 3.61b))
RoIC = 22.07% (NOPAT 866.7m / Invested Capital 3.93b)
WACC = 6.50% (E(3.58b)/V(9.59b) * Re(11.65%) + D(6.02b)/V(9.59b) * Rd(4.59%) * (1-Tc(0.25)))
Discount Rate = 11.65% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.61 | Cagr: -3.26%
[DCF] Terminal Value 77.97% ; FCFF base≈783.0m ; Y1≈897.6m ; Y5≈1.32b
[DCF] Fair Price = 73.57 (EV 19.9b - Net Debt 5.06b = Equity 14.8b / Shares 201.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -12.28 | EPS CAGR: -0.90% | SUE: -4.0 | # QB: -1
Revenue Correlation: -85.23 | Revenue CAGR: -0.78% | SUE: 3.18 | # QB: 1
EPS current Quarter (2026-07-31): EPS=0.20 | Chg30d=+1.85% | Revisions=-20% | Analysts=16
EPS current Year (2027-01-31): EPS=2.63 | Chg30d=+0.14% | Revisions=+25% | GrowthEPS=-17.9% | GrowthRev=-2.9%
EPS next Year (2028-01-31): EPS=2.87 | Chg30d=+0.06% | Revisions=+0% | GrowthEPS=+8.9% | GrowthRev=+2.2%
[Analyst] Revisions Ratio: +25%