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): 226.57%
EPS Trend (3Y Correlation): 34.4%

BFH Revenue

Revenue Growth (3Y CAGR): -1.41%
Revenue Trend (3Y Correlation): -59.4%

Description: BFH Bread Financial Holdings August 03, 2025

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	2,857m
Sub-Industry	Consumer Finance
IPO / Inception	2001-06-15

BFH Stock Ratings

Growth Rating	33.3%
Fundamental	64.9%
Dividend Rating	36.5%
Return 12m vs S&P 500	4.58%
Analyst Rating	3.31 of 5

BFH Dividends

Dividend Yield 12m	1.34%
Yield on Cost 5y	1.96%
Annual Growth 5y	-4.38%
Payout Consistency	90.5%
Payout Ratio	8.2%

BFH Growth Ratios

Growth Correlation 3m	-9.9%
Growth Correlation 12m	16.6%
Growth Correlation 5y	-26.1%
CAGR 5y	21.47%
CAGR/Max DD 3y (Calmar Ratio)	0.47
CAGR/Mean DD 3y (Pain Ratio)	1.37
Sharpe Ratio 12m	-0.74
Alpha	0.16
Beta	1.441
Volatility	42.55%
Current Volume	607.9k
Average Volume 20d	805.4k
Stop Loss	60 (-4.1%)
Signal	0.56

Piotroski VR‑10 (Strict, 0-10) 5.0

Net Income (472.0m TTM) > 0 and > 6% of Revenue (6% = 280.7m TTM)

FCFTA 0.09 (>2.0%) and ΔFCFTA -0.01pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -96.26% (prev -191.9%; Δ 95.61pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.09 (>3.0%) and CFO 2.00b > Net Income 472.0m (YES >=105%, WARN >=100%)

Net Debt (-3.76b) to EBITDA (624.0m) ratio: -6.03 <= 3.0 (WARN <= 3.5)

Current Ratio 0.47 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (47.5m) change vs 12m ago -6.86% (target <= -2.0% for YES)

Gross Margin 64.45% (prev 50.40%; Δ 14.05pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 21.53% (prev 22.53%; Δ -1.00pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.80 (EBITDA TTM 624.0m / Interest Expense TTM 676.0m) >= 6 (WARN >= 3)

Altman Z'' -0.90

(A) -0.21 = (Total Current Assets 4.05b - Total Current Liabilities 8.55b) / Total Assets 21.71b

(B) 0.07 = Retained Earnings (Balance) 1.43b / Total Assets 21.71b

(D) 0.08 = Book Value of Equity 1.42b / Total Liabilities 18.40b

Total Rating: -0.90 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 64.90

1. Piotroski 5.0pt = 0.0

2. FCF Yield 44.57% = 5.0

3. FCF Margin 42.82% = 7.50

4. Debt/Equity 1.71 = 1.19

5. Debt/Ebitda -6.03 = 2.50

6. ROIC - WACC (= 0.16)% = 0.20

7. RoE 14.98% = 1.25

8. Rev. Trend -59.44% = -4.46

9. EPS Trend 34.39% = 1.72

What is the price of BFH shares?

As of November 05, 2025, the stock is trading at USD 62.58 with a total of 607,918 shares traded.
Over the past week, the price has changed by -3.63%, over one month by +14.26%, over three months by +5.70% and over the past year by +25.44%.

Is Bread Financial Holdings a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Bread Financial Holdings is currently (November 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 64.90 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 55.94 USD . This means that BFH is currently overvalued and has a potential downside of -10.61%.

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	70.2	12.2%
Analysts Target Price	70.2	12.2%
ValueRay Target Price	61.1	-2.3%

BFH Fundamental Data Overview November 02, 2025

Market Cap USD = 2.86b (2.86b USD * 1.0 USD.USD)
P/E Trailing = 6.3411
P/E Forward = 6.5445
P/S = 1.1386
P/B = 0.8123
P/EG = 1.4544
Beta = 1.441
Revenue TTM = 4.68b USD
EBIT TTM = 540.0m USD
EBITDA TTM = 624.0m USD
Long Term Debt = 5.56b USD (from longTermDebt, last fiscal year)
Short Term Debt = 3.24b USD (from shortTermDebt, last fiscal year)
Debt = 5.68b USD (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -3.76b USD (from netDebt column, last quarter)
Enterprise Value = 4.49b USD (2.86b + Debt 5.68b - CCE 4.05b)
Interest Coverage Ratio = 0.80 (Ebit TTM 540.0m / Interest Expense TTM 676.0m)
FCF Yield = 44.57% (FCF TTM 2.00b / Enterprise Value 4.49b)
FCF Margin = 42.82% (FCF TTM 2.00b / Revenue TTM 4.68b)
Net Margin = 10.09% (Net Income TTM 472.0m / Revenue TTM 4.68b)
Gross Margin = 64.45% ((Revenue TTM 4.68b - Cost of Revenue TTM 1.66b) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 56.89%)
Tobins Q-Ratio = 0.21 (Enterprise Value 4.49b / Total Assets 21.71b)
Interest Expense / Debt = 3.87% (Interest Expense 220.0m / Debt 5.68b)
Taxrate = 4.08% (8.00m / 196.0m)
NOPAT = 518.0m (EBIT 540.0m * (1 - 4.08%))
Current Ratio = 0.47 (Total Current Assets 4.05b / Total Current Liabilities 8.55b)
Debt / Equity = 1.71 (Debt 5.68b / totalStockholderEquity, last quarter 3.32b)
Debt / EBITDA = -6.03 (Net Debt -3.76b / EBITDA 624.0m)
Debt / FCF = -1.88 (Net Debt -3.76b / FCF TTM 2.00b)
Total Stockholder Equity = 3.15b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.17% (Net Income 472.0m / Total Assets 21.71b)
RoE = 14.98% (Net Income TTM 472.0m / Total Stockholder Equity 3.15b)
RoCE = 6.20% (EBIT 540.0m / Capital Employed (Equity 3.15b + L.T.Debt 5.56b))
RoIC = 6.42% (NOPAT 518.0m / Invested Capital 8.06b)
WACC = 6.26% (E(2.86b)/V(8.54b) * Re(11.33%) + D(5.68b)/V(8.54b) * Rd(3.87%) * (1-Tc(0.04)))
Discount Rate = 11.33% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
[DCF Debug] Terminal Value 69.23% ; FCFE base≈2.00b ; Y1≈2.23b ; Y5≈2.94b
Fair Price DCF = 672.4 (DCF Value 30.66b / Shares Outstanding 45.6m; 5y FCF grow 13.10% → 3.0% )
EPS Correlation: 34.39 | EPS CAGR: 226.6% | SUE: 2.50 | # QB: 2
Revenue Correlation: -59.44 | Revenue CAGR: -1.41% | SUE: 1.86 | # QB: 3

Additional Sources for BFH Stock

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