Overview Dividends

(BFH) Bread Financial Holdings - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0185811082

Credit Card, Installment Loan, Cash-back Card, Digital Wallet, Savings Account

BFH EPS (Earnings per Share)

EPS Growth (3Y CAGR): 3.41%
EPS Trend (3Y Correlation): 9.3%

BFH Revenue

Revenue Growth (3Y CAGR): 0.74%
Revenue Trend (3Y Correlation): -20.4%

Description: BFH Bread Financial Holdings

Bread Financial Holdings, Inc. (NYSE:BFH) is a leading provider of tech-forward payment and lending solutions in North America, catering to customers and consumer-based industries. The companys comprehensive suite of services includes credit card and loan financing, risk management, account origination, and funding for private label and co-brand credit card programs.

The companys diverse product offerings also encompass installment loans, split-pay products, and marketing services, as well as data and analytics solutions. Through its digital payments platform, Bread, the company enables merchants and partners to integrate online point-of-sale financing and other digital payment products, promoting credit payment options earlier in the shopping experience.

Key performance indicators (KPIs) that can be used to evaluate the companys performance include revenue growth, net interest margin, delinquency rates, and return on equity (RoE). With a RoE of 9.23%, the company demonstrates a reasonable return on shareholder equity. Additionally, the companys price-to-earnings (P/E) ratio of 11.29 and forward P/E of 9.49 suggest a relatively attractive valuation.

To further assess the companys prospects, it is essential to monitor its ability to expand its customer base, enhance its digital suite, and integrate new technologies. The companys market capitalization of $2.98 billion and its presence in the consumer finance industry (GICS Sub Industry) provide a solid foundation for analysis. By examining these factors, investors can gain a deeper understanding of Bread Financial Holdings strengths, weaknesses, and potential for growth.

BFH Stock Overview

Market Cap in USD	2,782m
Sub-Industry	Consumer Finance
IPO / Inception	2001-06-15

BFH Stock Ratings

Growth Rating	25.3%
Fundamental	58.4%
Dividend Rating	39.6%
Return 12m vs S&P 500	-2.0%
Analyst Rating	3.31 of 5

BFH Dividends

Dividend Yield 12m	1.39%
Yield on Cost 5y	2.54%
Annual Growth 5y	-3.52%
Payout Consistency	90.5%
Payout Ratio	10.1%

BFH Growth Ratios

Growth Correlation 3m	74.6%
Growth Correlation 12m	21.3%
Growth Correlation 5y	-23.4%
CAGR 5y	14.99%
CAGR/Max DD 5y	0.20
Sharpe Ratio 12m	-0.31
Alpha	-6.67
Beta	1.494
Volatility	41.35%
Current Volume	583.5k
Average Volume 20d	480.6k
Stop Loss	64.2 (-3%)
Signal	-0.74

Piotroski VR‑10 (Strict, 0-10) 6.0

Net Income (286.0m TTM) > 0 and > 6% of Revenue (6% = 283.2m TTM)

FCFTA 0.09 (>2.0%) and ΔFCFTA -1.12pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -103.2% (prev 35.91%; Δ -139.1pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.10 (>3.0%) and CFO 2.25b > Net Income 286.0m (YES >=105%, WARN >=100%)

Net Debt (428.0m) to EBITDA (275.0m) ratio: 1.56 <= 3.0 (WARN <= 3.5)

Current Ratio 0.43 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (47.2m) change vs 12m ago -5.98% (target <= -2.0% for YES)

Gross Margin 60.61% (prev 52.42%; Δ 8.20pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 21.47% (prev 22.24%; Δ -0.76pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.23 (EBITDA TTM 275.0m / Interest Expense TTM 913.0m) >= 6 (WARN >= 3)

Altman Z'' -1.14

(A) -0.22 = (Total Current Assets 3.68b - Total Current Liabilities 8.55b) / Total Assets 21.82b

(B) 0.06 = Retained Earnings (Balance) 1.25b / Total Assets 21.82b

(D) 0.07 = Book Value of Equity 1.26b / Total Liabilities 18.66b

Total Rating: -1.14 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 58.38

1. Piotroski 6.0pt = 1.0

2. FCF Yield 11.29% = 5.0

3. FCF Margin 39.58% = 7.50

4. Debt/Equity 5.55 = -2.50

5. Debt/Ebitda 63.88 = -2.50

6. ROIC - WACC -0.43% = -0.53

7. RoE 9.23% = 0.77

8. Rev. Trend -20.38% = -1.02

9. Rev. CAGR 0.74% = 0.09

10. EPS Trend 9.30% = 0.23

11. EPS CAGR 3.41% = 0.34

What is the price of BFH shares?

As of August 31, 2025, the stock is trading at USD 66.19 with a total of 583,506 shares traded.
Over the past week, the price has changed by +6.14%, over one month by +5.82%, over three months by +27.97% and over the past year by +14.63%.

Is Bread Financial Holdings a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Bread Financial Holdings is currently (August 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 58.38 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of BFH is around 68.17 USD . This means that BFH is currently overvalued and has a potential downside of 2.99%.

Is BFH a buy, sell or hold?

Bread Financial Holdings has received a consensus analysts rating of 3.31. Therefor, it is recommend to hold BFH.

Strong Buy: 4
Buy: 1
Hold: 8
Sell: 2
Strong Sell: 1

What are the forecasts/targets for the BFH price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	68.7	3.8%
Analysts Target Price	57.4	-13.2%
ValueRay Target Price	71.9	8.7%

Last update: 2025-08-21 11:11

BFH Fundamental Data Overview

Market Cap USD = 2.78b (2.78b USD * 1.0 USD.USD)
CCE Cash And Equivalents = 3.80b USD (last quarter)
P/E Trailing = 10.0235
P/E Forward = 9.3809
P/S = 1.1345
P/B = 0.8786
P/EG = 2.0839
Beta = 1.443
Revenue TTM = 4.72b USD
EBIT TTM = 210.0m USD
EBITDA TTM = 275.0m USD
Long Term Debt = 4.23b USD (from longTermDebt, last quarter)
Short Term Debt = 13.34b USD (from shortTermDebt, last quarter)
Debt = 17.57b USD (Calculated: Short Term 13.34b + Long Term 4.23b)
Net Debt = 428.0m USD (from netDebt column, last quarter)
Enterprise Value = 16.55b USD (2.78b + Debt 17.57b - CCE 3.80b)
Interest Coverage Ratio = 0.23 (Ebit TTM 210.0m / Interest Expense TTM 913.0m)
FCF Yield = 11.29% (FCF TTM 1.87b / Enterprise Value 16.55b)
FCF Margin = 39.58% (FCF TTM 1.87b / Revenue TTM 4.72b)
Net Margin = 6.06% (Net Income TTM 286.0m / Revenue TTM 4.72b)
Gross Margin = 60.61% ((Revenue TTM 4.72b - Cost of Revenue TTM 1.86b) / Revenue TTM)
Tobins Q-Ratio = 13.18 (Enterprise Value 16.55b / Book Value Of Equity 1.26b)
Interest Expense / Debt = 1.24% (Interest Expense 217.0m / Debt 17.57b)
Taxrate = 26.77% (from yearly Income Tax Expense: 102.0m / 381.0m)
NOPAT = 153.8m (EBIT 210.0m * (1 - 26.77%))
Current Ratio = 0.43 (Total Current Assets 3.68b / Total Current Liabilities 8.55b)
Debt / Equity = 5.55 (Debt 17.57b / last Quarter total Stockholder Equity 3.17b)
Debt / EBITDA = 63.88 (Net Debt 428.0m / EBITDA 275.0m)
Debt / FCF = 9.40 (Debt 17.57b / FCF TTM 1.87b)
Total Stockholder Equity = 3.10b (last 4 quarters mean)
RoA = 1.31% (Net Income 286.0m, Total Assets 21.82b )
RoE = 9.23% (Net Income TTM 286.0m / Total Stockholder Equity 3.10b)
RoCE = 2.87% (Ebit 210.0m / (Equity 3.10b + L.T.Debt 4.23b))
RoIC = 1.93% (NOPAT 153.8m / Invested Capital 7.97b)
WACC = 2.36% (E(2.78b)/V(20.35b) * Re(11.52%)) + (D(17.57b)/V(20.35b) * Rd(1.24%) * (1-Tc(0.27)))
Shares Correlation 5-Years: -40.0 | Cagr: -1.43%
Discount Rate = 11.52% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 68.67% ; FCFE base≈1.98b ; Y1≈2.20b ; Y5≈2.90b
Fair Price DCF = 634.1 (DCF Value 29.58b / Shares Outstanding 46.6m; 5y FCF grow 13.10% → 3.0% )
Revenue Correlation: -20.38 | Revenue CAGR: 0.74%
Rev Growth-of-Growth: -6.73
EPS Correlation: 9.30 | EPS CAGR: 3.41%
EPS Growth-of-Growth: -70.28

Additional Sources for BFH Stock

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