BFH Stock Analysis: Bread Financial Holdings | NYSE
Credit Services | NYSE, USA | Market Cap: 3.926m USD | 12M Return: 61.3% | US0185811082 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 59.5M
EPS Trend: 44.5%
Qual. Beats: 0
Rev. Trend: -78.5%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Bread Financial Holdings, Inc. (BFH) is a U.S.-based consumer finance company headquartered in Columbus, Ohio, that provides tech-forward payment and lending solutions primarily in North America. Its core offerings include private label and co-brand credit card programs, installment loans, split-pay products, and a digital payments platform called Bread Pay, which enables merchants to integrate online point-of-sale financing and other digital payment options through application programming interfaces. The company also generates revenue through risk management, underwriting, funding, loan servicing, marketing, and data analytics services, and funds its operations in part through retail deposits such as certificates of deposit and high-yield savings accounts, including traditional and Roth IRAs.
The firm operates under multiple brands, including Bread, Bread Cashback, Bread Rewards, Bread Pay, and Bread Savings, and was originally incorporated in 1995 as Alliance Data Systems Corporation before rebranding to its current name in March 2022. As a mid-cap stock in the GICS Consumer Finance sub-industry, BFH competes in the consumer lending and digital payments space, a sector that has faced increased regulatory scrutiny on credit underwriting practices and rising competition from both traditional banks expanding digital offerings and fintech entrants focused on buy-now-pay-later (BNPL) and embedded finance solutions.
- Credit card outstandings growth drives total revenue and net interest yield
- Rising delinquencies and credit losses pressure provisioning costs and margins
- Capital allocation shifts toward buybacks and digital product investment
| Net Income: 536.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.21 > 1.0 |
| NWC/Revenue: -235.2% < 20% (prev -205.0%; Δ -30.14% < -1%) |
| CFO/TA 0.09 > 3% & CFO 2.19b > Net Income 536.0m |
| Net Debt (12.9b) to EBITDA (770.0m): 16.76 < 3 |
| Current Ratio: 0.27 > 1.5 & < 3 |
| Outstanding Shares: last quarter (39.3m) vs 12m ago -17.26% < -2% |
| Gross Margin: 64.02% > 18% (prev 53.60%; Δ 10.42% > 0.5%) |
| Asset Turnover: 21.28% > 50% (prev 21.56%; Δ -0.28% > 0%) |
| Interest Coverage Ratio: 0.89 > 6 (EBIT TTM 696.0m / Interest Expense TTM 786.0m) |
| A: -0.48 (Total Current Assets 4.24b - Total Current Liabilities 15.5b) / Total Assets 23.3b |
| B: 0.08 (Retained Earnings 1.92b / Total Assets 23.3b) |
| C: 0.03 (EBIT TTM 696.0m / Avg Total Assets 22.5b) |
| D: 0.17 (Book Value of Equity 3.44b / Total Liabilities 19.9b) |
| Altman-Z'' = -2.51 = D |
As of November 08, 2026, the stock is trading at USD 101.83 with a total of 563,409 shares traded. Over the past week, the price has changed by -1.53%, over one month by +4.12%, over three months by -7.18% and over the past year by +61.27%.
Current recommended Stop Loss: 96.10 (which is 5.6% or 1.3 ATR below the current price).
Bread Financial Holdings has received a consensus analysts rating of 3.82. Therefore, it is recommended to buy BFH.
- StrongBuy: 7
- Buy: 1
- Hold: 8
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 115.3 | 13.2% |
P/E Trailing = 8.1042
P/E Forward = 7.8927
P/S = 1.4582
P/B = 1.1422
P/EG = 2.2554
Revenue TTM = 4.79b USD
EBIT TTM = 696.0m USD
EBITDA TTM = 770.0m USD
Long Term Debt = 3.15b USD (from longTermDebt, last quarter)
Short Term Debt = 13.9b USD (from shortTermDebt, last fiscal year)
Debt = 17.1b USD (corrected: LT Debt 3.15b + ST Debt 13.9b) + Leases 85.0m
Net Debt = 12.9b USD (calculated: Debt 17.1b - CCE 4.24b)
Enterprise Value = 16.8b USD (3.93b + Debt 17.1b - CCE 4.24b)
Interest Coverage Ratio = 0.89 (Ebit TTM 696.0m / Interest Expense TTM 786.0m)
EV/FCF = 7.69x (Enterprise Value 16.8b / FCF TTM 2.19b)
FCF Yield = 13.00% (FCF TTM 2.19b / Enterprise Value 16.8b)
FCF Margin = 45.71% (FCF TTM 2.19b / Revenue TTM 4.79b)
Net Margin = 11.19% (Net Income TTM 536.0m / Revenue TTM 4.79b)
Gross Margin = 64.02% ((Revenue TTM 4.79b - Cost of Revenue TTM 1.72b) / Revenue TTM)
Gross Margin QoQ = 57.24% (prev 57.24%)
Tobins Q-Ratio = 0.72 (Enterprise Value 16.8b / Total Assets 23.3b)
Interest Expense / Debt = 4.58% (Interest Expense 786.0m / Debt 17.1b)
Taxrate = 22.99% (160.0m / 696.0m)
NOPAT = 536.0m (EBIT 696.0m * (1 - 22.99%))
Current Ratio = 0.27 (Total Current Assets 4.24b / Total Current Liabilities 15.5b)
Debt / Equity = 4.99 (Debt 17.1b / totalStockholderEquity, last quarter 3.44b)
Debt / EBITDA = 16.76 (Net Debt 12.9b / EBITDA 770.0m)
Debt / FCF = 5.90 (Net Debt 12.9b / FCF TTM 2.19b)
Total Stockholder Equity = 3.36b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.38% (Net Income 536.0m / Total Assets 23.3b)
RoE = 15.94% (Net Income TTM 536.0m / Total Stockholder Equity 3.36b)
RoCE = 10.69% (EBIT 696.0m / Capital Employed (Equity 3.36b + L.T.Debt 3.15b))
RoIC = 2.50% (NOPAT 536.0m / Invested Capital 21.5b)
WACC = 4.58% (E(3.93b)/V(21.1b) * Re(9.16%) + D(17.1b)/V(21.1b) * Rd(4.58%) * (1-Tc(0.23)))
Discount Rate = 9.16% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.24 | Cagr: -10.31%
[DCF] Terminal Value 76.63% ; FCFF base≈2.11b ; Y1≈2.29b ; Y5≈2.83b
[DCF] Fair Price = 802.4 (EV 43.4b - Net Debt 12.9b = Equity 30.5b / Shares 38.0m; r=8.35% [WACC [floored]]; 5y FCF grow 9.72% → 2.50% )
EPS Correlation: 44.50 | EPS CAGR: 13.30% | SUE: 0.84 | # QB: 0
Revenue Correlation: -78.51 | Revenue CAGR: -1.71% | SUE: 0.77 | # QB: 0
EPS current Quarter (2027-03-31): EPS=4.46 | Chg30d=-0.56% | Revisions=+17% | Analysts=9
EPS current Year (2026-12-31): EPS=12.94 | Chg30d=+4.62% | Revisions=+22% | GrowthEPS=+6.5% | GrowthRev=+4.7%
EPS next Year (2027-12-31): EPS=13.86 | Chg30d=+1.69% | Revisions=+62% | GrowthEPS=+7.1% | GrowthRev=+3.2%
[Analyst] Revisions Ratio: +47% (up=11, down=3)