(BFH) Bread Financial Holdings - Overview
Sector: Financial Services | Industry: Credit Services | Exchange: NYSE (USA) | Market Cap: 3.541m USD | Total Return: 70.6% in 12m
Avg Turnover: 44.7M
EPS Trend: 2.8%
Qual. Beats: 4
Rev. Trend: -79.6%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Bread Financial Holdings, Inc. (BFH) is a financial services provider specializing in tech-enabled payment, lending, and saving solutions for the North American market. The company operates primarily through private label and co-brand credit card programs, as well as point-of-sale (POS) financing via its Bread Pay platform. Its business model integrates credit underwriting and risk management with data-driven marketing services to support merchant partners.
The company maintains a diversified funding base by offering direct-to-consumer deposit products, such as high-yield savings accounts and certificates of deposit. Within the consumer finance sector, this vertically integrated approach allows firms to capture interest income while leveraging proprietary data to refine credit modeling for retail-specific lending. Formerly known as Alliance Data Systems, the company rebranded in 2022 to align with its shift toward digital-first financial products.
Investors can further examine the companys valuation metrics and historical performance trends by visiting ValueRay. Bread Financial continues to focus on its digital suite, utilizing software development kits (SDKs) and APIs to embed financing options directly into the merchant checkout process.
- Net interest margin sensitivity to Federal Reserve benchmark interest rate changes
- Credit card delinquency and net charge-off rates impact loan loss provisions
- Consumer spending trends across private label and co-brand retail partner programs
- Regulatory shifts in credit card late fees reduce non-interest income streams
- Direct-to-consumer deposit growth influences funding costs and capital liquidity ratios
| Net Income: 561.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 1.62 > 1.0 |
| NWC/Revenue: -234.3% < 20% (prev -183.3%; Δ -50.98% < -1%) |
| CFO/TA 0.10 > 3% & CFO 2.19b > Net Income 561.0m |
| Net Debt (14.3b) to EBITDA (738.0m): 19.38 < 3 |
| Current Ratio: 0.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (43.2m) vs 12m ago -12.90% < -2% |
| Gross Margin: 63.99% > 18% (prev 0.51%; Δ 6.35k% > 0.5%) |
| Asset Turnover: 21.10% > 50% (prev 21.24%; Δ -0.14% > 0%) |
| Interest Coverage Ratio: 0.80 > 6 (EBITDA TTM 738.0m / Interest Expense TTM 822.0m) |
| A: -0.50 (Total Current Assets 3.64b - Total Current Liabilities 14.7b) / Total Assets 22.3b |
| B: 0.07 (Retained Earnings 1.64b / Total Assets 22.3b) |
| C: 0.03 (EBIT TTM 660.0m / Avg Total Assets 22.3b) |
| D: 0.09 (Book Value of Equity 1.63b / Total Liabilities 19.0b) |
| Altman-Z'' = -2.72 = D |
| DSRI: 0.01 (Receivables 148.0m/15.6b, Revenue 4.71b/4.75b) |
| GMI: 0.80 (GM 63.99% / 51.43%) |
| AQI: 1.04 (AQ_t 0.83 / AQ_t-1 0.80) |
| SGI: 0.99 (Revenue 4.71b / 4.75b) |
| TATA: -0.07 (NI 561.0m - CFO 2.19b) / TA 22.3b) |
| Beneish M = -4.07 (Cap -4..+1) = AAA |
As of May 23, 2026, the stock is trading at USD 86.60 with a total of 478,289 shares traded.
Over the past week, the price has changed by -0.18%,
over one month by -6.32%,
over three months by +22.60% and
over the past year by +70.57%.
Bread Financial Holdings has received a consensus analysts rating of 3.31. Therefore, it is recommended to hold BFH.
- StrongBuy: 4
- Buy: 1
- Hold: 8
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 95.7 | 10.5% |
P/E Forward = 7.6104
P/S = 1.3391
P/B = 1.0544
P/EG = 2.0028
Revenue TTM = 4.71b USD
EBIT TTM = 660.0m USD
EBITDA TTM = 738.0m USD
Long Term Debt = 3.94b USD (from longTermDebt, last quarter)
Short Term Debt = 13.9b USD (from shortTermDebt, last fiscal year)
Debt = 17.9b USD (corrected: LT Debt 3.94b + ST Debt 13.9b) + Leases 85.0m
Net Debt = 14.3b USD (calculated: Debt 17.9b - CCE 3.64b)
Enterprise Value = 17.8b USD (3.54b + Debt 17.9b - CCE 3.64b)
Interest Coverage Ratio = 0.80 (Ebit TTM 660.0m / Interest Expense TTM 822.0m)
EV/FCF = 8.19x (Enterprise Value 17.8b / FCF TTM 2.18b)
FCF Yield = 12.20% (FCF TTM 2.18b / Enterprise Value 17.8b)
FCF Margin = 46.19% (FCF TTM 2.18b / Revenue TTM 4.71b)
Net Margin = 11.90% (Net Income TTM 561.0m / Revenue TTM 4.71b)
Gross Margin = 63.99% ((Revenue TTM 4.71b - Cost of Revenue TTM 1.70b) / Revenue TTM)
Gross Margin QoQ = 59.04% (prev 83.05%)
Tobins Q-Ratio = 0.80 (Enterprise Value 17.8b / Total Assets 22.3b)
Interest Expense / Debt = 4.58% (Interest Expense 822.0m / Debt 17.9b)
Taxrate = 25.51% (62.0m / 243.0m)
NOPAT = 491.6m (EBIT 660.0m * (1 - 25.51%))
Current Ratio = 0.25 (Total Current Assets 3.64b / Total Current Liabilities 14.7b)
Debt / Equity = 5.40 (Debt 17.9b / totalStockholderEquity, last quarter 3.33b)
Debt / EBITDA = 19.38 (Net Debt 14.3b / EBITDA 738.0m)
Debt / FCF = 6.57 (Net Debt 14.3b / FCF TTM 2.18b)
Total Stockholder Equity = 3.28b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.51% (Net Income 561.0m / Total Assets 22.3b)
RoE = 17.08% (Net Income TTM 561.0m / Total Stockholder Equity 3.28b)
RoCE = 9.14% (EBIT 660.0m / Capital Employed (Equity 3.28b + L.T.Debt 3.94b))
RoIC = 2.28% (NOPAT 491.6m / Invested Capital 21.5b)
WACC = 4.81% (E(3.54b)/V(21.5b) * Re(11.91%) + D(17.9b)/V(21.5b) * Rd(4.58%) * (1-Tc(0.26)))
Discount Rate = 11.91% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -53.94 | Cagr: -5.96%
[DCF] Terminal Value 77.97% ; FCFF base≈2.04b ; Y1≈2.33b ; Y5≈3.43b
[DCF] Fair Price = 925.0 (EV 51.7b - Net Debt 14.3b = Equity 37.4b / Shares 40.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 2.80 | EPS CAGR: 0.69% | SUE: 1.59 | # QB: 4
Revenue Correlation: -79.57 | Revenue CAGR: -1.82% | SUE: 0.80 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.75 | Chg30d=-1.70% | Revisions=-33% | Analysts=10
EPS next Quarter (2026-09-30): EPS=3.13 | Chg30d=-4.59% | Revisions=-8% | Analysts=10
EPS current Year (2026-12-31): EPS=11.27 | Chg30d=+9.83% | Revisions=+57% | GrowthEPS=-7.3% | GrowthRev=+2.7%
EPS next Year (2027-12-31): EPS=12.30 | Chg30d=+3.51% | Revisions=+69% | GrowthEPS=+9.2% | GrowthRev=+3.7%
[Analyst] Revisions Ratio: +69%